Czech Republic
Presentation of country
- Country located in the heart of Central Europe with 10.7 million inhabitants and 2 millions in the capital Prague
- Very dynamic economy with lowest rate of unemployment in developed countries, 2.1%, and an income per capita which increases at a very quick pace
- A strong presence of industrial activities, such as automobile manufacturing, transport and electronics
- Average salary of 1560€ / month, which explains competitivity of the industry, boosted by a voluntary low exchange rate of the Czech Crown
- Second country in the OECD list and in the world with lowest proportion of people living under poverty level
Potential
- The Czech Republic is certainly a country which has the highest probability to reach the same life standards of Western European countries avoiding their issues (religious terrorism, tax, violence, criminality,etc.)
- One of the preferred city in the world among expats
- Presence of some best world universities
- GDP growth was 3% in 2021
- The debt represents 38.1% of the GDP (vs. 116.3% in France, for example)
Real estate market
- Real estate market price has increased by 22% in Q3 2021 in YOY growth making it largest house price increase in the EU
- Low level of new apartments built every year because of absence of available land and restrictions in zoning policy
- Pressure on price due to large increase in salaries, living standards, and increase of population (students, expatriates or professionals from other provinces)
- Possibility to have bank financing up to 50% for non-resident investors
- Extremely low real estate tax
- Very large potential of increase of rent and of acquisition price
- Price per sqm in Prague is still very low compared to Munich or Vienna, which are comparable nearby cities
Tax & Social
- Corporate tax: 19%
- Tax rate on rents for non residents investors: 15%
- Tax on dividends distributed: 15%
- Transfer tax of real estate: 4%, paid by the buyer
- VAT: 21%, reduced rate 15% and 10%
- Currency: Czech Crown
