Change of Czech property sales tax rules

It was recently announced that the government have finally signed into law the change of Czech property sales (transfer) tax rules.

The result is the seller of a Czech property will no longer pay the property sales tax, but instead the buyer will be responsible for this (essentially becoming a purchase tax). Though it can still be agreed amongst the parties who pays it in the end.

This new rule applies from 01.11.2016.

The sales tax remains at 4% of the property price/value.

It remains to be seen how banks will handle this change and if they will finance the purchase tax or not.