Property tax Czech Republic 2025

In the Czech Republic, property tax (daň z nemovitých věcí) is an annual mandatory payment regulated by Act No. 338/1992 Sb. on Immovable Property Tax. This tax is a local tax and is levied in favour of the budget of the municipality where the object of taxation is located. Immovable property tax is divided into two components: tax on land plots and tax on buildings and structures, including residential and commercial property, engineering constructions, as well as undeveloped plots intended for construction. The tax is payable by both legal entities and individuals registered as owners of the respective property as of 1 January of the tax year. The tax base for land plots is the cadastral area expressed in square metres multiplied by the rate determined by the type of land (agricultural land, development, forests, ponds, other). The municipality has the right to increase the base rate using local coefficients reflecting the value of the territory and the level of infrastructure. As for buildings, the tax base is formed based on the total built-up area of the property. For residential buildings, a base rate of CZK 2 per square metre is applied, for business and storage premises – CZK 5 or more, depending on the functional purpose. For commercial buildings used in business activities, the rate may be up to CZK 10 per square metre. Garages, separate buildings, unfinished construction are also subject to separate tax rates.

Municipalities are authorised to adjust tax rates by applying so-called local coefficients (všeobecný koeficient), which can increase the tax burden up to five times the base value. Such coefficients are set annually and published in local regulations. For example, in Prague and Brno, higher coefficients are applied than in sparsely populated areas. The obligation to file a tax return arises in case of acquisition of a property, change of area, purpose or reconstruction that affects the tax base. The declaration must be submitted to the local subdivision of the Tax Service at the location of the property no later than 31 January of the year following the year in which the change occurred. In subsequent years, if there are no changes, the tax is calculated automatically. The tax is due annually on 31 May. If the amount of tax exceeds CZK 5,000, payment may be made in two equal instalments – by 31 May and by 30 November. Payment can be made by bank transfer, by QR code, via the online system of the tax administration or at a branch of the Czech Post Office.

The same rules apply for legal entities, but with a large real estate portfolio, centralised accounting of properties, filing of a generalised declaration and control over the application of the correct rates in different municipalities are required. Particular attention is paid to the correct classification of properties – errors in determining the purpose of a building may result in a recalculation of tax and the imposition of penalties. Some categories of property may be exempt from tax in full or in part. This applies, for example, to religious buildings, schools, health care facilities, property belonging to diplomatic missions and properties used exclusively for non-profit charitable activities.

Property tax in the Czech Republic has traditionally remained one of the lowest in the European Union, which makes owning property in the country attractive for both residents and foreign investors. However, in recent years there has been a tendency to increase the tax burden on commercial property by revising local coefficients in large cities and tourist regions.

Thus, property tax in the Czech Republic is a transparent and predictable mechanism of local taxation. Its calculation is based on objective physical characteristics of the object, adjusted for local conditions, and compliance with tax discipline ensures the absence of claims from the fiscal authorities and the stability of the legal status of the property owner.

 When to submit real estate tax declaration for 2025?

The real estate tax declaration is submitted at the end of the previous year. However, it is valid in advance, i.e. you submit it for the year in which you will pay the tax. For example, if you purchased property in 2024, you file your 2025 return early in 2025 and pay the tax during 2025.

For 2025 (based on events in 2024), the return is filed by Monday, 31 January 2025, as follows:

•  if you acquired the property in 2024.
• If you have owned the property for a long period of time and there is a change in circumstances relevant to the assessment of tax in 2024, e.g. a change:
  • the area of the land (also based on a review of the property register)
  • type of land
  • the use of the building
  • superstructure or extension
  • the property has been partially liquidated
• In addition, if you donated or sold part of the property and still own any property in the same county, you must file a tax return.

If you no longer own the property (you donated, sold, or otherwise disposed of it), you must notify the tax office.

You do not have to file a tax return:

• If you have previously filed an estate tax return and there has been no change in the circumstances of the tax determination, especially the change itself.
• An estate tax return is also not filed if the only change to the property is a change in the factor, as the tax office will automatically take these changes into account when calculating the tax and send you the paperwork to pay the correct amount of estate tax.

Changes in property ownership in 2025 will be reflected in the 2026 estate tax return.

The return is filed with the tax office in the region where the claimed real estate is located. If you have multiple properties in different regions, you file one declaration for each region (properties within the same region are filed in one declaration).

Estate tax due date for 2025

Property tax up to CZK 5,000 must be paid by 31 May 2025.

Property tax over CZK 5,000 is payable:

• for taxpayers engaged in agricultural production and fish farming by 31 August and 30 November 2025
• for other taxpayers by 31 May 2025 and 30 November 2025.

 What is property tax in the Czech Republic?

The object of property tax is land plots registered in the real estate cadastre, taxable structures and taxable objects in the Czech Republic.

Property tax consists of:

• land tax,
• tax on buildings and structures.

Decisive for determining the real estate tax for 2025 is the situation as of 1 January 2025. Changes that will occur during 2025 will be reflected in the tax return for 2026.

The taxpayer is obliged to calculate the property tax on his/her own in his/her tax return, using for this purpose all documents containing essential data on his/her land, buildings and structures in the Czech Republic (e.g. extract from the real estate cadastre, building permits, inheritance and gift documents, sale and purchase contracts, accounting data).

 Who pays property tax in the Czech Republic?

The property tax payer can be a natural person or a legal entity.

The payer of land tax is:

• the owner of the land,
• for land owned by the Czech Republic, the taxpayer is a state entity managing state property or a legal entity with the right to use the land,
• for land in a trust fund, unit investment fund and fund managed by a pension company, the taxpayer is the fund,
• the developer (i.e. the authorised builder) if it is land encumbered with a building right,
• the lessee or tenant of leased or rented land,

1. which is registered in the real estate cadastre in a simplified procedure, or
2. which is under the jurisdiction of the State Land Administration or the State Material Reserves Administration, or
3. which is transferred to the Ministry of Finance on the basis of a decision on privatisation,

• land user, if the owner of the land is unknown.

The taxpayer of the tax on buildings and structures is:

• the owner of the taxable building or taxable unit,
• in case of a taxable building or taxable unit owned by the Czech Republic, the taxpayer is a state entity, managing state property, or a legal entity authorised to use the taxable building or taxable unit,
• in the case of a taxable structure or taxable unit in a trust fund, mutual fund, and fund managed by a retirement company, the taxpayer is the fund,
• the lessee or lessee is the taxpayer of a taxable unit that includes a nonresidential structure other than a basement or storage room, or a leased or rented taxable structure that is not a residential structure,

1. if the State Land Office or the State Material Reserves Office is competent to manage them, or
2. which are transferred to the Ministry of Finance on the basis of a privatisation decision.

 Changes in property tax in the Czech Republic in 2025

In addition to the size and type of property, property tax is determined by the following factors:

• local coefficient

Municipalities can influence the amount of the final tax (including reducing it if the coefficient is less than 1). A list of local coefficients by city can be found on the Finance Department’s website.

• coefficient depending on the size of the municipality
• inflation factor from 2024

Another innovation of the government is the introduction of an inflation coefficient, which will be calculated based on the growth of the price index. Thus, the property tax will be indexed annually to inflation.
For agricultural land, the inflation coefficient is always 1 (inflation is already accounted for in the tax base).
The Ministry of Finance will announce the change in the inflation coefficient in the form of a notice published in the Collection of Laws and International Treaties by 30 June of the calendar year immediately preceding the tax period. The inflation coefficient may increase on an annualised basis by no more than 20% (i.e. one-fifth).
For the 2024 tax period, the inflation coefficient is set at 1 (transitional provisions of the law). This coefficient will be maintained in 2025.