4% tax on real estate purchase to be cancelled


A minor legislative update re: real estate purchase tax:
An act that cancels the 4% tax on the purchased real estate is being approved by CZ House of Representatives. (https://www.psp.cz/sqw/historie.sqw?o=8&t=734 ) and should be passed as there is no material opposition against it, according to rumors.
If the act is passed in the currently proposed form, it should, despite a rather "creative" legal drafting", apply retroactively also to all purchases from December 2019 forward.
Beware, the same act contains also a prolongation of the tax test period for waived of the income tax from selling real estate (5->10 years) and a cancellation of the possibility of applying the mortgage interest against the tax base for income tax purposes.

Martin Strnad, 24.07.2022