Czech Property Taxes Soar 80%: Deadline May 31st, What You Need to Know

24.04.2024

About 4.2 million people and companies in the Czech Republic pay property taxes yearly. Starting in 2024, property owners will pay significantly more due to over 40 changes in the government’s consolidation package.

The most important change is an average 80% tax increase across all properties. Some property owners will now be required to file a tax return.

The amendment brings several other changes that property owners should be aware of.

“The tax authorities will determine changes in tax rates or local coefficients, and they will notify taxpayers in late April or May. These new tax calculations will also consider a number of other changes related to the amendments. Owners of garages, plots of land, or recreational buildings should be aware that the new taxation will be based on land registry data, not the actual purpose of use,” says Simona Gornokhova, Director General of the Financial Directorate.

When do you need to pay property tax in the Czech Republic in 2024?

The deadline for payment is May 31st. If your tax liability exceeds 5,000 Czech crowns (CZK), you have the option to split the payment into two installments: the first half due by the end of May and the second half due by the end of November.

How much will property taxes increase?

Property taxes across all real estate in the Czech Republic will see an 80% increase this year.

For example, if you own a 70-square-meter apartment in Prague’s Zizkov district, your tax would increase from 1,720 CZK to 3,010 CZK. Similar increases apply to other cities: in Pilsen from 774 CZK to 1,355 CZK, and in Brno from 598 CZK to 1,047 CZK.

Additionally, local coefficients, which municipalities use to influence the final tax amount, have changed since the beginning of the year. Municipalities have the option to reduce the final tax by a factor of less than 1. It’s important to note that the government has also introduced an inflation factor based on price level increases, designed to prevent the real value of the tax from decreasing over time.

Who is Required to File a Tax Return?

Here are several situations where you now need to file a tax return for property taxes in the Czech Republic:

Owners of Development Land: If you own land intended for development, regardless of whether there are existing structures on it, you must file a tax return. This is due to the higher tax rate applied to development land.

Owners of Paved Areas Not Registered as Buildings: If you own land with asphalt paving that is not officially registered as a built-up area, yard, or other land type in the Land Register, you must file a tax return. This commonly includes paved areas on agricultural land used for parking vehicles or equipment.

Garage Owners: If you own a garage registered as such in the Land Registry, you need to confirm how it’s being used. If the actual use doesn’t align with its “garage” designation (e.g., it’s now a fruit stand), you need to file a tax return and update its classification. Conversely, if you own a structure used as a garage but it’s not registered as one, you must clarify this situation.

Landlords Renting Rooms for Short-term Use with Additional Services: If you rent a room in a residential building for short-term stays (like for tourists) and provide additional services (cleaning, linen changes, etc.), you must file a tax return. This also applies to residential spaces rented as fully-fledged accommodation businesses.

Users of State-Owned Land (without lease/rental): File a tax return if you use land owned by the State Land Administration or State Property Administration without a formal agreement, or if the owner is unknown.

Who Can Apply for Property Tax Exemption in the Czech Republic?

Owners of buildings operating as registered children’s groups
Owners of land located within a designated wilderness zone of a national park

When Do You NOT Need to File a Tax Return?

Family Leisure Buildings:

Tax calculations for leisure buildings will now be determined by their Land Registry classification. If there’s a discrepancy between the Land Registry designation and how you’ve reported the building on past tax returns (e.g., listed as a permanent residence), the tax service will adjust the rate automatically.

Certain Ponds:

Ponds designated for intensive or industrial fish farming are exempt from taxation and don’t require a tax return.

Specific Land Classifications:

Land registered as barren, edge, hillside, wetland, or green space will not need a tax return. The tax service will automatically recalculate the tax at a reduced rate.

Summary

Payment Deadlines: Pay in two equal installments by May 31st and November 30th.

Finding Your Tax Amount:

Information is available through:

The My Taxes portal
Your DIS+ inbox (data mailbox)
Requesting information by email
Those without the above options or SIPO payment will receive a money order by mail.

Payment Methods:

The tax office will provide payment details based on your chosen method. Options include: