Question 1

Is there a real estate transfer tax in the Czech Republic?

Accepted Answer

No. The historic 4% real estate acquisition tax (Daň z nabytí nemovitých věcí) was permanently and retroactively abolished by Act No. 386/2020 Coll. Real estate property purchases are subject to 0% state transfer tax.

Question 2

How much does registration in the Czech Land Cadastre (Katastr nemovitostí) cost?

Accepted Answer

The statutory filing fee (vklad do katastru nemovitostí) is 2,000 CZK per registration petition. A cash purchase requires one petition (ownership transfer = 2,000 CZK), whereas a bank-financed purchase requires two petitions (bank mortgage pledge entry + ownership transfer = 4,000 CZK).

Question 3

How are notary escrow fees (Notařska uschova) calculated in Czechia?

Accepted Answer

Notary escrow fees are legally regulated by Ministry of Justice Decree No. 196/2001 Coll.: 1.2% on the first 100,000 CZK; 0.6% on the next 400,000 CZK; 0.4% from 500,000 to 1,000,000 CZK; 0.2% from 1,000,000 to 10,000,000 CZK; and 0.1% on amounts exceeding 10,000,000 CZK.

Question 4

What is the difference between notary, attorney, and bank escrow?

Accepted Answer

Notary escrow is governed by statutory tariffs with mandatory notary indemnity insurance. Attorney escrow is governed by Czech Bar Association guidelines and typically charges negotiated market fees (8,000–20,000 CZK). Bank escrow is administered directly by commercial banks (typically 0.2% of the price).

Question 5

Can mortgage interest be deducted from Czech personal income tax?

Accepted Answer

Yes. Under Section 15(3)–(4) of the Income Taxes Act (Act No. 586/1992 Coll.), individuals utilizing real estate for primary residential purposes can deduct up to 150,000 CZK per year of paid mortgage loan interest from their taxable income base.

Closing Fee Category	Statutory Authority	Statutory Cost / Tariff	Applicable VAT	Security & Guarantee Regime
Transfer Tax (Daň z nabytí)	Act No. 386/2020 Coll.	0% (Abolished)	0% Exempt	Complete elimination of 4% buyer acquisition levy.
Land Cadastre (Katastr)	Act No. 256/2013 Coll.	2,000 Kč per petition	0% Court Fee	State-guaranteed registry entries at Czech Land Cadastre (ÄŒÚZK).
Notary Escrow (Notař)	Decree No. 196/2001 Coll.	Regulated sliding scale	21% DPH	Mandatory statutory notary insurance & separate special bank account.
Attorney Escrow (Advokat)	Czech Bar Association	8,000 – 25,000 Kč market	21% DPH (if VAT payer)	Registered with Czech Bar Association online depository monitor.
Bank Escrow (Banka)	Banking Price List	~0.2% (min 8,000 Kč)	21% DPH	Direct custodial account in top Czech commercial bank.

Czech Property Acquisition & Notary Fee Calculator

Property Acquisition Details

Itemized Closing Cost Breakdown CZK (Kč)

Comparative Matrix: Escrow Options & Land Registry Tariffs

Engr. Muhammad Shahzad

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