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- Real Estate Acquisition Tax to Be Paid By Buyers As of November
Real Estate Acquisition Tax to Be Paid By Buyers As of November
08.08.2016
As of November 1, 2016, the real estate acquisition tax in the Czech Republic is to be paid solely by property buyers. This obligation is prescribed by an amendment to the law which was published in the Collection of Laws on August 5.
According to existing legislation, the tax is paid by the seller, while the buyer holds the position of a guarantor. Although the law allows for the option of including an arrangement concerning the tax liability transfer to the buyer in the sales contract, this option is, nevertheless, hardly ever used in practice.
In accordance with the new legislation, the real estate acquisition tax will be paid solely by the buyer and the institute of guaranty will cease to exist. The tax rate, on the other hand, remains the same – 4% of the purchase price of the property. The proposals of some senators to reduce or abolish this tax have thus not been passed.
