Building permit (stavební povolení)
A decision of the building authority entitling the builder to start construction. Since 1 July 2024 the new Building Act No. 283/2021 Coll. has applied, merging zoning and building proceedings into a single procedure to permit the project (řízení o povolení záměru); in practice its outcome is still called a building permit. A bank usually finances the construction of a house only once the permit is final (pravomocné).
Example
Building a family house with a budget of CZK 4,000,000: the bank approves a mortgage at 5.00 % over 25 years only after a final permit, the design documentation and the budget have been submitted. Funds are drawn in stages against invoices. Until the loan is fully drawn, you pay only interest on the amount drawn; after that, the payment will be CZK 23,384.
In practice
The bank compares the budget with the building design, and the valuer values the house as it will be when finished. Full drawdown usually has to happen within 1–2 years; if construction takes longer, you have to apply to amend the contract. Don't buy a plot with a mortgage on the assumption that the permit will “work out somehow”. Without it, the bank will not release any money for construction. How the bank finances a construction step by step is set out in mortgage to build a house.
How it differs
The permit sits at the opposite end of the project from kolaudace (occupancy approval): one starts construction, the other allows the building to be used. Banks often treat works that only need notification, or minor works with no permit, as renovation and finance them with a renovation loan. Under the old act, a zoning decision (územní rozhodnutí) did not by itself allow construction.
Frequently asked questions
Do you need a building permit for a small structure?
Not for a minor structure (drobná stavba): for example a building of up to 40 m² and 5 m high with one storey, on the plot of a family house, used with the home and at least 2 m from the boundary. It must still comply with the zoning plan.
Will a bank lend without a building permit?
Not for building a house: banks usually want a final permit, the design documentation and the budget before they release any money. Minor works that need no permit are usually financed as a renovation.
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