Prague Prime Homes
Attractive Tax Regime
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Contact

For additional information please contact:

Prague Prime Homes Management s.r.o.

Letenska 8

118 00 Prague

Email: office@pragueprimehomes.eu

Phone: +420 775 985 795

ATTRACTIVE TAX REGIME

The Czech Republic has a flat tax regime at comparable low tax rates:  The applicable Czech income tax amounts currently to 15% in case of physical persons and 19% in case of legal persons. The Czech income tax is applicable on rental income and capital gains at the disposal, unless a property is held for more than 5 years. In that case capital gains at the disposal are tax free.

In principal, physical persons and entities are taxable in in their country of tax residence with respect to their worldwide income. On the other hand the Czech tax law foresees that income from the letting or selling of real estate in the Czech Republic is subject to Czech income tax. In order to avoid double taxation, the Czech Republic has concluded double taxation treaties with many countries and most of these double taxation treaties regulate that income, which physical or legal persons generate from a direct investment in a Czech property, is taxable in the Czech Republic with no additional taxation in the country of residence of the investor (only for the purpose of the calculation of the applicable tax rate the foreign tax exempted income has to be declared in the home countries as well).

If the documentation requirements are fulfilled by, the tax beneficial regime is also applicable in case that the participation in the property is structured through a trustee that holds the participation on behalf of the investor.