Specific steps to buying property in Czech Republic
Overall, the process of purchasing
property in the Czech Republic by a foreign national is a rather simplistic
process. There are some additional requirements imposed upon a foreign national
when it comes to the purchase of real estate in the Czech Republic at this point
At the present time, the Czech government is working to liberalize and streamline
the laws governing the purchase of real estate by a foreign national. Much of this
effort is being expended due to the Republic's admission into the European Union.
At the present time, a foreign national from the European Union can purchase and
own real estate in the Czech Republic directly. Historically, in the Czech Republic,
a foreign national from any nation simply could not purchase and own a
home in the Czech Republic directly. In other words, in order to purchase
and own real estate in the Czech Republic in days gone by, a person who was a foreign
nation needed to establish a limited liability company in the Czech Republic for
the purpose of taking title to real estate in the Czech Republic.
In today's Czech Republic, a citizen from one or another of the nations that comprise
the EU no longer needs to establish a limited liability company in the Czech Republic
to take possession or and title to property within the Czech Republic. Instead,
a citizen of one or another of the EU member nations can own real estate in the
Czech Republic directly.
At the present time, residents and citizens of other countries the world over that
are not a part of the EU cannot buy real estate directly in the Czech Republic at
this time. With that said, there is determined movement being had on the part of
the Czech Republic's government to revamp the provisions of the law that prevent
direct ownership of real estate by foreign nationals who are not part of the EU.
These changes in the law are expected to take effect within the Czech Republic within
the coming decade.
In any event, and has been mentioned previously, a foreign national from a non-EU
can buy and possess real estate in the Czech Republic after establishing a bona
fide limited liability company in the Czech Republic, the limited liability company
being the entity that will take title to real estate in the Czech Republic on behalf
of the non-EU foreign national.
Once the limited liability company has been established by the non-EU foreign national,
in some instances the purchase of property in the Czech Republic can be a rather
simple two step process. In some instances, the purchase of real estate can be as
simple as executing one written contract for the purchase of real estate. Subsequent
to the preparation and execution of the contract for the purchase of real estate,
in some instances the only other step that must be taken to complete the sale and
transfer of ownership in the subject real estate is the filing of a petition regarding
the sale and transfer with the Cadastral Registry.
In some instances in the Czech Republic a foreign national will be interested in
buying real estate that is in the process of being developed. In other words, the
foreign national has an interest in buying real estate that includes a building
or structure that is in the process of being constructed or that is slated for construction.
The buyer desires to have the construction of the building, the development of the
property, be a part of the overall sales transaction. In such a situation, rather
than signing a simple contract for the purchase of real estate, the purchaser will
execute what is known as a contract for future purchase contract. In other words,
the buyer is executing an agreement to enter into a sales contract upon the completion
of the construction or development on the subject property in question.
Property Abroad always recommends using a
Solicitor or Lawyer
Help others to find this article: