Owning Czech Property as a Non-Resident 2026: Income Tax, Real Estate Tax and Sale by PoA

Non-resident with Czech property: own yes, but with obligations

After losing tax residency in the Czech Republic you can keep your Czech property — Czech property ownership is not conditional on residency or citizenship. However, three categories of obligations apply: real estate tax (Act 338/1992 Sb.), income tax on rent or sale (15 % withholding or via return) and notification duties to the finanční úřad, ohlašovna and cadastre.

2026 key principle: a non-resident files a Czech tax return only on Czech-source income (§ 22 Act 586/1992 Sb.). Rental and sale of Czech property are always Czech-source income regardless of residency — DTT then governs how Czech tax credits against the destination country’s tax.

Real estate tax: an annual routine

The owner of a Czech property as of 1 January is liable for real estate tax. 2026 rates:

– Residential buildings: 1-3.50 Kč/m² of built-up area;

– Building land: 2-5 Kč/m²;

– Other land (gardens, orchards): 0.30-3.50 Kč/m²;

– Local coefficient: 1, 1.5, 2, 2.5 or 3 (Prague, Brno, Plzeň often 2-2.5);

– Municipal coefficient 1, 1.4 or 1.6 by population.

Example for a 75 m² flat in Prague 6: built-up area 75 m² × 2 Kč × local coef. 2.5 = 375 Kč. Plus a fractional share of land. Total approx. 1 200-2 800 Kč per year.

Due date: by 31 May. Tax above 5 000 Kč can be paid in two instalments (31 May and 30 November). We recommend SIPO or a standing order from a Czech bank account — fragmented Wise transfers from EUR get complicated.

Renting Czech property as a non-resident: 15 % tax

Renting Czech property as a non-resident is subject to:

1) Czech 15 % income tax on net profit (real expenses or 30 % flat-rate up to 600 000 Kč/year);

2) duty to file a Czech tax return at the FÚ matching last trvalý pobyt (or FÚ Prague 1 for non-residents without a Czech link) by 1 April (paper) or 1 May (electronic via data box);

3) duty to tax the same income in the destination state with credit for Czech tax;

4) VAT does not apply to residential rental; for short-term Airbnb-style letting it does on turnover above 2 million Kč.

Real expenses vs 30 % flat-rate

Real expenses — better for renovations, higher mortgage interest, higher property-management fees. Includes: mortgage interest, repairs and maintenance (not investment renovation), property insurance, real estate tax, common services (cleaning, lift), property management via a specialised firm (3-8 % of rent), travel for occasional inspections (modestly).

30 % flat-rate — simple, good for properties without mortgage or renovation. We recommend calculating both each year — the difference can be 30-50 % of tax.

Practical table: typical non-resident annual after-tax yield

Gross rent (Kč/month)	15 % CZ tax (30 % flat-rate)	After CZ tax (year)	Germany DTT impact
15 000 (180 000/year)	180 000 × 0.7 × 0.15 = 18 900	161 100	Credit 18 900 in Germany
25 000 (300 000/year)	300 000 × 0.7 × 0.15 = 31 500	268 500	Credit 31 500 in Germany
40 000 (480 000/year)	480 000 × 0.7 × 0.15 = 50 400	429 600	Credit 50 400 in Germany
60 000 (720 000/year)	720 000 × 0.7 × 0.15 = 75 600	644 400	Credit 75 600 in Germany

Remote property management: professional or family?

Key choice: who deals with tenants, emergencies, rent collection, payment monitoring. Three options:

Real-estate / management firm: Lexxus, Reality M&M, Re/Max, AAA Reality, Sotheby’s, Rossmann and local agencies. Commission 5-12 % of monthly rent (typically 8 % including 24/7 emergency line) plus 50-100 % of first month rent for tenant search. Most expensive but most passive.

Specialist property manager: 3-6 % of rent, no tenant search. Suitable for stable long-term lets.

Family member or friend: free, but no professional or legal liability. We recommend a power of attorney with scope (limited to ordinary management, sale and investment decisions excluded), notarised (about 2 000 Kč).

Lease contract with a non-resident landlord

The Czech Civil Code (§ 2235-2238) governs the lease regardless of landlord residency. We recommend:

– Contract minimum 1 year with automatic renewal;

– Deposit 1-3 months on a separate account;

– Clear identification of landlord (name, rodné číslo, foreign address, destination-country TIN);

– Czech delivery address (manager, lawyer) or active data box;

– Inspection clause (every 6-12 months with 14 days’ notice).

Sale as non-resident: 15 % tax, the time test

Sale of Czech property as a non-resident applies the same time test as for residents:

– 2 years own housing immediately before sale;

– 10 years ownership for property acquired from 1 January 2021;

– 5 years ownership for property acquired before 1 January 2021;

– 5 years for land.

Meeting the test means full exemption. Above 5 million Kč you must report the exempt income to the FÚ (§ 38v) by the return deadline. Failing the test: 15 % tax on sale price minus acquisition cost minus documented investments. See our property sale guide.

Mortgage for a non-resident in the Czech Republic

Czech banks (ČSOB, Komerční banka, Česká spořitelna, Hypoteční banka, Air Bank) offer mortgages to non-residents in 2026 with limitations:

– LTV (loan-to-value) maximum 60-70 % (vs 80-90 % for residents);

– Rate 0.3-0.8 percentage points higher;

– Foreign-currency income must be documented and converted conservatively;

– Maximum maturity 25-30 years, considering age at last instalment.

Refinancing an existing mortgage post-emigration tends to go the other way — banks often refuse refinancing citing changed risk profile. It is best to lock in a long fixation before leaving.