November 6, 2016 @ 9:50PM
As of November 1, 2016 the real estate transfer tax is no longer the responsibility of the seller but the buyer.
The real estate transfer tax is currently 4% and needs to be paid on either the purchase price or the valuation price, whichever is higher. Buyers are required to have a valuation of the property done by a state approved valuer.
The reason for this change of responsibility was that it was sometimes difficult for the State to get payment from the seller. In these situations the buyer was the guarantor of the tax payment creating nasty surprises for those buyers unaware of their obligations. Everything should now be clearer for all parties and more secure for the State. The State is able to register a lien against the property of a non-paying buyer.
For those buyers and sellers in the middle of a transaction began before the Nov. 1, 2016 start date it is important to note that the new law takes precedent over provisions agreed in the purchase contract. Also, the date that the purchase contract is submitted to the Land Registry is the date that is used with regard to which law it falls under.
If you require legal assistance in a purchase please drop me an email: email@example.com. We have purchase packages as shown here: www.czechpoint101.com/buying-a-property/ and our hourly legal rate is currently 1895 CZK/hr + VAT.
November 6, 2016,