Tax implications
During 2005 the development boom continued as more foreign companies were lured to invest in the Czech Republic due to the low level of interest rates and VAT imposed on the supply of goods and services and general increase in purchase prices of real estate.
New development wave
In the forefront of the new development wave are projects in Prague and other large cities which usually include office buildings and multi-functional shopping malls. However, the office market is becoming more and more saturated with passing each year and developers are starting to look for new opportunities in smaller municipalities and rural area. Some interesting residential projects and high-tech logistic parks are on the horizon in this respect.
With continued economic growth in the Czech Republic bringing an increase in purchasing power, the increasing accessibility of mortgages and a continuation of the current low levels of interest rates, there is a feeling that demand — and therefore prices — could remain high for the next few years. For developers, the real estate market in the Czech Republic still represents great potential and vast opportunities.
Our expertise
We have provided an introduction to the taxation issues that affect real estate in the Czech Republic — on purchase, ownership, lease and all the way through to sale. Learn more in the below attached document, covering the following issues:
· Acquisition of real estate
· Financing the investment
· General corporate income tax issues
· General VAT issues
· Ownership of real estate
· Leasing of real estate
· Sale/transfer of real estate
· Real estate tax
· Real estate transfer tax
Our services
At Deloitte, we have created a team of dedicated real estate specialists who are ready to assist domestic and foreign investors with all issues related to real estate business. Our tax team understands the issues around construction, ownership and leasing of property, and delivers a comprehensive service to a wide range of property companies and property users.
Our services are always tailored to meet your precise requirements but the areas where we particularly specialise are advisory services focused on acquisition, ownership and sale/transfer of real estate. If you would like more information on any aspect of the taxation implications of Czech real estate, please contact us.
Attachments
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Tax implications; Published March 2006; 12 pages
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Page Last Updated: 27 March 2006
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Source: Deloitte in Czech Republic - Czech Republic (English)
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