Annual property tax (daň z nemovitých věcí)

The buyer of a flat for CZK 5,000,000 with a CZK 4,000,000 mortgage (5.00 %, payment CZK 23,384) is entered in the land registry in April 2026. Tax for 2026 is still paid by the seller. By 1 February 2027 (31 January falls on a Sunday) the buyer must file a tax return, and the tax for 2027 is due by 31 May 2027.

The tax for the whole year is paid by whoever owns the property on 1 January. After a purchase you file a tax return once, by 31 January of the following year (if the land registry enters you only after New Year, by the end of the third month after the entry); from then on the tax office assesses the tax itself until something changes. Pay by 31 May, or in two halves by 31 May and 30 November if the tax exceeds CZK 5,000.

For a flat, the base is the floor area × 1.22 (a unit in an apartment building with a share of the land), taxed at CZK 3.50 per m² and multiplied by the municipality coefficient, 4.5 in Prague (a district may raise it to 5.0). A 50 m² Prague flat: 50 × 1.22 × 3.50 × 4.5 = CZK 961 a year, before the inflation coefficient and any local coefficient. For a let flat the tax is a deductible expense. A late return filed before the tax office asks for it carries no penalty, but do not count on the land registry passing the change on.

Of the property taxes, this is the only one the owner pays every year, even if the property earns nothing. The real estate acquisition tax (daň z nabytí nemovitých věcí, 4 % of the purchase price) was a one-off on purchase and was abolished in 2020. Income tax on a sale follows the holding period test. The interest deduction, the tax on a sale and the other taxes on a mortgaged flat are summed up in a separate guide.