As of January 1, 2024, the Czech Republic experienced a sharp increase in property tax rates, by about 80% compared to 2023. For some taxpayers, the tax increased several times due to the introduction of local increasing coefficients. Taxpayers did not have to file a tax return due to the change in rates. The tax authority itself recalculated the new tax amount according to the current rates and coefficients, and sent taxpayers information to pay the tax by the due date.
Property tax structure
The total amount of real estate tax consists of tax on land plots and tax on buildings and real estate units. The tax rate differs for different types of land and buildings. For rental properties, the property tax is paid by the owner, not the tenant. Property owners factor the amount of tax into the monthly rent. Tenants of cooperative apartments are also not liable for tax, as the owner registered in the real estate cadastre is the respective cooperative.
Differences in tax amounts
The amount of property tax varies from town to town in the Czech Republic. For example, for apartments, the tax amount depends not only on the area, but also on the size of the locality and the local coefficient. Thus, in some cities the increase in the total amount of real estate tax will be higher, while in others it will be lower. According to the Ministry of Finance, real estate tax rates will increase approximately 1.8 times in 2024.
Tax payment deadlines
Property tax for 2024 must be paid by the end of May. If the annual tax liability exceeds 5000 kroons, the tax can be paid in two stages: half by the end of May and the other half by the end of November. In most cases, apartment owners pay the real estate tax in a lump sum.
Reminder
As a reminder, property taxes for 2024 are due by May 31, 2024. Please make sure that you receive the information with the tax payment details and make the payment on time to avoid penalties.
