That’s how it broke. Anyone who owns a house or apartment in the Czech Republic will pay a hefty sum. Having property is no longer worth it, get rid of it

You probably didn’t even realize it, but in the Czech Republic it has long been the case that owners of their own real estate are significantly favored over those who live in, for example, rent. After all, everything seems to be tailor-made for owner-occupied housing, so it is not too surprising that people went to it to such an extent.

Long favoritism

Let’s sum it up. You can take out a mortgage for your own home, which was very cheap until recently. But what’s more, you can deduct the interest from your taxes, whereas people who rent can’t. Property acquisition tax has also disappeared. First of all, there was virtually no property tax, in this case real estate tax. Although people literally own palaces or very luxurious apartments, they pay only very small, essentially symbolic sums for them.

Many have therefore begun to complain that real estate ownership is too favored here, which then leads, among other things, to the fact that people buy them in bulk and others do not get it. Regardless of the fact that everyone else subsidizes property owners with their taxes, since they themselves don’t pay much.

However, for a long time it was true that the ownership of a house or apartment is sacred in the Czech Republic and, in short, it is not interfered with. Now, however, this invisible wall has finally cracked and the real estate tax is starting to rise.

First, it will almost double from next year, but it is almost certain that it will not stay there. As soon as this topic, or rather the possibility, has opened up once, they will start to be used to a greater extent, especially in times of leaky state budgets.

Prepare your money

According to experts, there is a lot of room for growth. Some believe that tens of thousands of crowns should be paid for real estate worth millions, which is almost every one today. If, for example, someone has a family home worth twenty million, they should not be surprised at an even higher amount.

After all, investment banker Ondřej Jonáš, who has experience in Western countries, would easily increase the property tax to ten to twenty times the current level. The payment amount should then reflect the value of the property as well as where it is located.

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It is also true that property taxes are significantly higher in the West. Everyone will then think about whether the property is worth keeping or whether it is worth buying and expanding.

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