Taxation
The taxation overview described below follows the Czech tax legislation and may be drafted differently by a particular Double Tax Treaty. The Double Tax Treaty will be applied if it is more advantageous for a taxpayer than the national legislation. For general information on Prague apartments click here.
The current tax system was introduced in January 1993. The legislation is subject to frequent amendments and changes due to rapid development in the economy. Among the most significant is the ongoing harmonization of the Czech Law with the EU legislation. The following summarizes information about life in Prague, information you need before looking at Prague apartments.
Taxpayers in the Czech Republic are subject to the following taxes:
- Corporate Income Tax: 28% in 2004, 26% in 2005 and 24% from 2006
- Personal Income Tax: 15-32%
- Value Added Tax (VAT):5% (services and selected goods) or19% (goods and selected services)
- Excise Tax:levied on petrol and petrol derivates, alcohol (beer, wine) and tobacco
- Road Tax:cars: CZK 1,200. - 4,200; trucks CZK 1,800. – 44,100.
- Real Estate Tax: according to type, location and purpose of use of the real estate
- Real Estate Transfer Tax: 3%
- Inheritance Tax & Gift Tax: from 7% to 40% for non-related persons
Before looking at Prague apartments we will help you with answers on taxation.
Corporate Income Tax and Personal Income Tax
All Czech tax residents are subject to these taxes on their worldwide income, while Czech tax non-residents are taxed only on their Czech source income.
The tax residency of an individual person is defined as a permanent address in the Czech Republic (i.e. a permanent home that indicates his/her intention to live there continuously) and/or "a usual residence" in the Czech Republic (i.e. individual’s total amount of days resided in the Czech Republic equals or exceeds 183 days per year). The tax residency ofa legal entity is a seat or a place of management in the Czech Republic. If you have any question regarding Prague apartments don´t hesitate to contact Prague real estate agents listed in our bussiness directory.
For more infromation about Personal Income Taxes see corresponding sections.
Excise Tax
This tax applies to hydrocarbon fuels and lubricants, spirits and distilled liquors, beer, wine, and tobacco products that are produced in or imported to the Czech Republic. The tax is calculated as a fixed amount per unit of the product concerned and is levied on the producer (importer). You will find more information connected to Prague apartments in this site.
Road Tax
Road tax is payable on vehicles with license plates of the Czech Republic or registered abroad that are used for business purposes in the Czech Republic. The tax is calculated according to engine size for passenger cars or weight and axle size for other commercial vehicles. For vehicles with Czech registration used for business or similar activity in the Czech Republic, the rates range from CZK 1,200 (on vehicles with engines of up to 800 cm3) to CZK 44,100 (on heavy-duty vehicles of over 36 tonnes) and the tax period is a calendar year. Tax payers are required to submit their tax return for the previous tax period (calendar year) by 31 January. Planning on moving to Prague ? You will need these information before looking at Prague apartments.
The tax period for foreign vehicles is the period between the entry to and departure from the Czech Republic. The tax is levied by the customs authorities and is payable on entering the country.
Real Estate Tax
Real estate taxation comprises a tax on land - land tax, and a tax on structures - building tax. Real estate tax is generally payable on an annual basis by the registered owner of the land or buildings, although in very specific cases the user or the leaseholder is the payer. All property owners must file tax returns to their financial authorities by 31st January only for the first tax period (calendar year) and only when changes, e.g. change of name, occurs. Along with our vast inventory of Prague apartments, you will find information on the city. Land tax is imposed on plots of land entered in the Land Register and is payable by the owner or user. Tax on land with building permission is CZK 1 per square meter. Building tax is calculated according to the registered ground area of the building: CZK 1, 5 or 10 per square meter in the case of business premises and CZK 1,3 or 4 per square meter for residential buildings; this amount may be increased by CZK 0.75 per square meter for each additional floor. PragueRealtyPortal is one of the best places to start your search for Prague apartments.
Both land tax and building tax are multiplied by a coefficient that varies according to location, ranging from 0.3 to 5 (the highest coefficient is applicable in Prague).
Real Estate Transfer Tax
If not subject to tax exemption, real estate transfer tax is charged at a uniform rate of 5 % of the sale price of a property, or the usual market price, whichever is higher, and is payable by the seller (the buyer is a guarantor). Plug in to our Prague apartments power search and discover a large range of Prague apartments from the comfort and convenience of your computer.
Inheritance and Gift Tax
Inheritance tax is payable in case of receipt of property by an inheritor due to the death of a testator. Property includes immovable (land, building), movable property, securities, etc. The receipt of immovable property located in the Czech Republic is subject to inheritance tax, regardless of the residence of the testator/inheritor. The inheritance of movable assets is in principle subject to Czech tax if the testator was a Czech citizen and/or if the movable property was located in the Czech Republic. Further information about Prague apartments.
The receipt of assets without consideration is subject to agift tax. If property is given to a Czech individual or entity, then the recipient has to pay the gift tax. If property is given to a foreigner, the gift tax has to be paid by the Czech donator.
Local Taxes
There are no local taxes to be paid by companies.
Source by: TACOMA a.s.
TACOMA
Bredovský dvůr – Olivova 4
110 00 Prague 1
Czech Republic
Contact: Darina Noviková
Tel: (+420) 226 219 000
Fax: (+420) 226 219 111
Email: marketing@tacoma.cz
Web: www.tacoma.cz
