Property Taxation in the Czech Republic in 2025: What Business Owners Need to Know

Does your company own a warehouse, office, garage, or land? If so, you are required to pay property tax by 31 May. Unlike most other taxes, property tax is paid in advance for the calendar year, always by 31 January of the relevant year.

You only need to file a tax return if:

• there was a change of ownership in the previous year (you purchased the property, received it as a gift, inherited it, sold it, donated it, etc.);
  
• significant construction work was carried out (an extension, or a change in the area of the land);
  
• you started using the property for business;
  
• you registered a landscape element on the land (e.g., a forest, peat bog, watercourse, pond, lake, or floodplain).
  

If none of these changes occurred, you do not need to file a tax return, and the tax office will assess the tax based on the last known amount.

Property tax in the Czech Republic applies to all property owners, including those with commercial premises used for business (such as workshops or warehouses). In 2025, it’s important to note that the tax must be paid by 31 May, and the amount due depends on the specific characteristics of the property.

Objects – Real Estate and Land

Real estate tax is a source of revenue for the municipality in which the property is located. Municipalities have the authority to influence the amount of this tax by applying a local coefficient or by granting tax exemptions for properties damaged by extraordinary events (especially natural disasters).

Real estate tax consists of two components: land tax and tax on buildings and structures. The objects of taxation are land plots located within the territory of the Czech Republic that are registered in the land register, except the following:

• land plots built up with taxable buildings, within the built-up area of these buildings,
  
• forest land classified as protected or special-purpose forests,
  
• water areas,
  
• land plots designated for the defence of the Czech Republic,
  
• land plots, or shares in them, that form part of taxable units in residential buildings, and other plots co-owned by the owners of such units, provided they are used together with the units, in proportion to the co-ownership share of each owner.

Taxpayers – Individuals and Companies

In most cases, the payer of real estate tax is the owner of the property. Under certain conditions, the tenant or user may also be the payer. In some specific cases, real estate may be exempt from taxation. This applies to properties that serve a public interest or have a special designated purpose. Examples of public interest include land used for transport infrastructure, public green spaces, or parks. A special purpose may include use for national defense, environmental protection, or use as a medical facility.

As a result, most properties used for private or business purposes – that is, serving the interests of the owner – are not eligible for exemption and are taxed under standard rules.

Unlike income tax, the local jurisdiction for real estate tax does not depend on the permanent residence of individuals or the registered office of companies. Instead, it is determined by the location of the property. If a taxpayer owns real estate in multiple regions, they must file a separate tax return for each region with the relevant financial authority.

Payment Deadline

Real estate tax is assessed for the tax period, which is the calendar year, and is calculated in advance as of January 1 of the year for which the tax is due.

The taxpayer’s tax liability is determined based on the real estate they own as of January 1, according to the real estate cadastre. The tax return must be filed by January 31 of the current year. Filing is only required if there has been a change in circumstances that are relevant for calculating the tax.

A change in circumstances may include, for example:

• a change in property ownership,
  
• reconstruction, extension, or superstructure of a building,
  
• completion of a new structure,
  
• a change in the type of land plot,
  
• a change in the use of a taxable structure,
  
• the creation of a building site, or
  
• the creation of a fortified area on a land plot.
  

If no such changes have occurred, the tax return is not required. Therefore, if a taxpayer has owned the same property for several years without any changes in use or construction, they do not need to file a new return each year, as the reported data remains valid.

If the annual real estate tax does not exceed CZK 5,000, it must be paid in a single installment by 31 May of the current year. If the tax exceeds this amount, it is paid in two equal installments:

• For taxpayers engaged in agricultural production, by 31 August and 30 November.
  
• For other taxpayers, by 31 May and 30 November.

The taxpayer learns the amount of real estate tax either from the current tax return, or – if they are not required to file a return – from a notification sent by the tax authority, since the tax amount may change due to modifications in rates or coefficients. The tax authority informs taxpayers of the current real estate tax amount using one of the following methods:

• SIPO – if the taxpayer is registered to pay taxes via the SIPO system,
  
• Email – if the taxpayer has signed up to receive tax payment details by email,
  
• Data box – if the taxpayer has one (by law, all legal entities and individuals engaged in business must have a data box; individuals not engaged in business may create one voluntarily),
  
• Payment order – in all other cases.
  

The first return that a taxpayer submits to the local tax office in a given region is considered a regular return. In the event of changes, the taxpayer either files a new regular return, in which previously reported data is updated to reflect the changes, or submits a partial return, indicating only the changes.

If a taxpayer no longer owns any real estate in the region, they must submit a notice of cessation of property tax liability. This is an informal communication to the tax office stating that they no longer own any real estate in that region and, therefore, are no longer subject to real estate tax.

In the case of joint ownership, co-owners are jointly and severally liable for fulfilling tax obligations. If the co-ownership share cannot be determined (for example, in the case of spouses’ joint property), one of the co-owners must file the return. If the co-ownership share can be determined, the return can either be submitted for all real estate through a common representative (one of the co-owners) or each co-owner can file separately for their share, depending on their mutual agreement.

If at least one co-owner files a return only for their share by 31 January, then each co-owner is required to file a separate tax return for their share of the property.

Not sure how to handle real estate tax obligations, joint ownership declarations, or filing deadlines?

Let 360WEDO take care of it for you. Our accounting and consulting experts in the Czech Republic will guide you through every step – whether you are filing for the first time, dealing with complex co-ownership situations, or simply want to make sure everything is done right.

Reach out to us through our website to book a consultation – we will help you stay compliant, avoid penalties, and save time.

https://financnisprava.gov.cz/cs/dane/dane/dan-z-nemovitych-veci/dotazy-a-odpovedi/nejcastejsi-dotazy-na-dani-z-nemovitych