Property acquisition tax abolished with final effect

Sept. 30, 2020 Czech Republic

As of 25th September 2020 the property acquistion tax was, after several discussions, abolished with final effect.

This abolition applies to all entries entered into the Cadastral register retrospectively from 1 December 2019. As a part of this legislative change the two intended personal income tax adjustments were approved as well. The amendment to Income Tax Act extends minimum holding period for properties from 5 to 10 years, to be entitled to the exemption of personal income tax on the property sale, which is applicable to properties acquired as of 1st January 2021. The second approved adjustment is maximum deduction amount of interests paid on mortgages, which was cut down from CZK 300 000 to CZK 150 000 per year. This applies to properties acquired as of 1st January 2022.

For advisory on abolition of property acquisition tax do not hesitate to contact our tax experts.

Lucie Berglová
Head of Tax Team
ASB Czech Republic
lberglova@asbgroup.eu