Tax on acquisition of immovable property in the Czech Republic

As of November 1, 2016 shall in the Czech Republic come into effectiveness an amendment to a statutory measure of the Senate no. 340/2013 Coll. on Tax on acquisition of immovable property, which states that the taxpayer shall always be the ownership acquirer of the property (i.e. by a purchase agreement the buyer). This represents a change of the current concept, according to which the taxpayer has been the transferor (seller) and the acquirer has been the guarantor for payment of the tax, and thus unless the contract did not state that the taxpayer is the acquirer.

 

The new legislation applies to all transactions in which the application for registration of the transfer of ownership in the Land Registry is filed after 31 October 2016, and it is no longer possible to negotiate in a contract that the taxpayer shall be the transferor. The transferee (buyer) also has the obligation to draft and file the tax return.