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


  • 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