More recently, a Russian citizen could not acquire Czech real estate directly - it was necessary to register the Czech firm, the name which then acquire real estate.
But it took 5 years from the date of the Czech Republic in the EU, and restrictions for foreigners who have kept the Czech Republic during the 5 years are removed.
On May 1, 2009 in the Czech Republic came into force the International Treaty on the Prohibition of restrictions on capital movements, giving the right of nationals of other States to acquire properties on an individual. Now the restriction of left only to agricultural land and forests. House or apartment, located on such sites are available only to registered in the Czech legal entity.
But most likely, and this restriction will be lifted within the next two years.
IN CASE you plan to eat in the future to move to permanent residence in the Czech Republic, it is better to use the "old" scheme purchase facility - registration of the company in the Czech Republic with the subsequent registration of real estate on this company. Since in this case facilitated the process of applications for entry visas and to obtain permanent residence. (Call us - we'll tell you more about this process).
The procedure of the transaction when buying real estate from the moment when you select a suitable object for purchase and completed the negotiations on the final price. Stages in the process of purchase:
1. Making the amount of collateral (usually 10% of project cost) and the signing of the relevant reservation contract.
This is to ensure that the subject was withdrawn from sale. In the reservation contract must be spelled out in detail all the conditions of transaction, the terms of possible failure of the transaction, liability and sanctions for violations of paragraphs reservation contract.
2. The signing of the basic contract of sale between the seller and buyer. At the same time the buyer sends the money deposited with a notary.
Usually, to keep money between buyer, seller and notary public is a separate contract of deposit money. This contract defines all the conditions under which the notary will give money to the seller or the buyer will return them.
Deposited money with a notary may be replaced by safe-deposit box or storage of money from the lawyer - by agreement of the parties. In any case, this is a paid service, who and in what proportion it pays is determined by the underlying contract and the contract of storage.
Deposited money can be free only if the money is kept by the broker dealer.
3. Applying the real estate cadastre (the location of the object) for the recording of ownership and other procedures required for processing of real property rights.
The transaction shall be effective when made a corresponding entry in the inventory of real estate, and at this point the notary gives money to the seller. The recording process in the inventory can take from one to six months (depending on exactly which cadastral management application is submitted). However, immediately after the statement of changes in the records of the facility, the inventory is blocking object to any changes.
 Additional cost 1. Services save money - € 1000 (if the transaction services of a notary or a bank). If the money is transferred through a broker dealer - it's free.
2. Fee and commission expense - 7.2% of the value of the object.
3.Payment for the services of the bank and the agent to provide mortgages.
All other expenses are included in the fee, tax on sale of real estate pays the seller, the very real estate tax - paid at the beginning of the year following the purchase (and annually thereafter).
To the price of new buildings added to the VAT, which is a residential premises is 5% in non-residential - 19%
 The cost of maintaining property annually a property owner pays property taxes.
Real estate tax must be paid before May 31. Report on real estate tax must be made before 31 January (for the previous calendar year).
Tax is calculated by square meters of different types of built-up area of above-ground (residential, non-residential, etc.) and land (yard, garden, meadow, etc.). For example, for residential basic rate of tax is:
- The residential (apartment) buildings - a crown / m
- In private homes and cottages - 3 EEK / m²
- In a detached garage - 4 crowns per sqm
- In industrial facilities - 5 euros / sq.m.
In the case of flat base rate multiplied by 1.2 (because the tax is imposed on built-up area (ie, including the walls), while the apartment is ground floor).
For the land tax rate, for example:
- In built-up areas and courtyards - 0.1 kroons per sqm
- At construction sites - 1 krone per sqm
The base rate per square meter (like buildings and land) is multiplied by the local rate, which is 0.3 in settlements with a population of up to 300 people, increases with the size of the settlement and reaches 3.5 in cities with populations over 500 thousand people, as well as in the resort towns Frantishkove Lazne Luhacovice, Marianske Lazne and Podebrady. In Prague, the rate was 4,5.
For example, an apartment in private ownership in the Prague area of 100 sq.m. some cost in terms of real estate tax: 100 * 1,2 (flat rate) * 4.5 (multiplying factor) = 540 euros per year (about $ 25), and a country house with a built-up area of 150 square meters and with a plot 1000 sq.m. assumes tax rate of (150 * 3 (structure) + 300 * 0.1 (built-up area and courtyard) 700 * 1 (green plot)) * 1 (coefficient for village residents 600-1000) = 1180 euros per year (approximately $ 50).
- The average monthly fee for utilities - 120-240 euros
Upon the sale of the object will need to pay sales tax on real estate.
The tax is levied at 3% of the purchase price, and we are talking about "real" valuation price. If the transaction is concluded at a higher price, the tax is calculated it, if at a lower, tax authorities may independently to count the tax to the seller. Therefore, when a real estate transaction is important to have a document on expert evaluation of the sold object.
Additional benefits
Of all the postcommunist countries of Eastern Europe Czech Republic - one of the few who managed not only to survive in the new market spaces and extract the maximum benefit of a market economy, profits, and to heal nicely. Everything here is fine: the climate and the banking system, locks and tax laws, beer and industrial production.
Entrepreneurs also provided special tax benefits. So, is not taxed that portion of revenue and profit, which is directed at improving the skills of a small or medium businesses. Developed special rules for depreciation, revaluation of fixed assets. Special discounts are made to companies that employ people with disabilities. Additional benefits can get companies that are in economically depressed areas.
Special favors and privileges granted to those who did not come empty-handed - for investors provides a quick acquire a nationality.
Businessmen offered preferential loans to further develop and expand business, as well as interesting interest on deposits at Czech banks.Talented young people the opportunity to finish my studies for free: to learn Czech, and some one or more foreign languages, and also issued preferential loans for the purchase of local real estate. Thus, the most promising is tied to the country: the people, stunned by such a warm and cordial welcome to stay here forever.
Russian businessmen are already owned by thousands of Czech small and medium-sized firms. In this case, the Russians - not businessmen, and the future of physicists, chemists, programmers, doctors and engineers - made a very interesting proposal. Young professionals are glad and big companies and the government, to prepare them either to employ or provide any support for opening a small firm.
Banks. Credits. Every year in the Czech Republic are increasingly popular mortgage loans. Mortgage allows you to purchase real estate in the Czech Republic today and it pay the full cost of the next 15 years. It's much more convenient than saving money, putting a significant accumulation of inflationary pressures and other risks.
In the Czech Republic, the services of banks, mortgage providers, uses more than half the population.
Czech banks (usually owned by foreign financial structures) are characterized by high compared with other European countries, payments for maintaining and servicing the account and all banking transactions. Major banks: CHSOB (owned by the Belgian KBC), Commercial Bank (Societe Dzheneral) Česká Sporzhitelna (similar to the Savings Bank, owned by Erste Bank), Bank Zhivnostenski (Italian Unicredit), GE Money Bank (owned by General Electric).
MORTGAGES
It is possible to obtain mortgage loans in the amount of 30-50% of the value of real estate with the payment for up to 15 years. The average percentage is about 5-6% per annum, depending on a variety of individual circumstances. The bank always takes 1% as a one-time payment for the loan
Mortgages in the Czech Republic (mortgage) on a legal entity provided by the bank for up to 15 years in the amount of up to 60% of the value of the property.
- Repayment of mortgage (home mortgage) should be equal monthly installments.
- The percentage of mortgages depends on the so-called period of fixation. Term fix - this time through which you have the opportunity in any way change the terms of the contract, such as to repay the entire loan or part of the loan without interest and without penalty, or change the period of fixation.
For example, you received a loan of two million crowns.
Do you have a contract spelled out a three-year fix and, in addition, be sure to specify the period within which you can notify the bank about repayment of the loan (eg 500 000 kroons) and change fixed period (eg 1 year, if next year you will have to fully repay the loan). These 500 000 kroons shall be canceled by the bank without interest and without penalty, and interest on the loan are recalculated for the remaining mortgage.
Banks also have the opportunity to change the terms of the loan at the end of your term fixation (for example, they can raise or lower the interest on the loan). But, as practice shows, in a highly competitive banks to raise interest rates on loans do not go.
Term fixation may be 1, 3, 5, 7 years old. The smaller the period of fixation, the lower the credit interest rate:
at an annual fixed annual interest rate is 3,5-3,8% per annum,
with a 3-year fixed - 4,2-4,6%,
with a 5-year fixed - 5,5-6,5% .0
When you choose term fix should be guided not only by your existing financial ability to repay the mortgage early, but other circumstances.
For example, money in Russia and other CIS countries are significantly more expensive than the interest on a mortgage loan in the Czech Republic that we offer. Therefore, many of our affluent clients prefer to take a mortgage at a profit, using the freed funds for other purposes.
Timing of review and obtaining a mortgage
On average, a full review process and obtaining a mortgage of the new companies registered in the Czech Republic are not citizens, is 1,5 -2 months.
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Buying real estate - Czech Republic