REALWorld Law

Sale and purchase

Taxation of asset deals

Which taxes are relevant/which transaction costs will be incurred when buying real estate as an asset (asset deal) and how are the transaction costs shared between the buyer and seller?

Czech Republic

Czech Republic

  • Real estate acquisition tax at 4% of either the purchase price or the value of the real estate has been cancelled in 2020. VAT may apply to certain types of transaction.
  • The fee for registration with the Cadastral Registry is CZK 2,000.
  • The fees for the authentication of signatures (paid to a notary or local authority) amount to CZK 30 per signature, in case of a notary CZK 70 per signature.
  • If the purchase price is paid via an escrow agent, an escrow fee will be payable, the amount depending on the value of the transaction.
  • Other fees, for example the cost of lawyers, technical consultants and agencies.
  • The registration fee is normally paid by the buyer while the escrow fee is usually shared equally between both parties.