Brief summary from the article:
- Property tax is paid by owners of land, buildings, apartments or houses, but not by owners of cooperative apartments.
- The real estate tax return is submitted once, the tax is then paid every year, or in case of changes in ownership.
- The consolidation package plans to raise the property tax by 1.8 times starting January 1, 2024, with municipalities allowed to adjust the local coefficient.
This summary was generated using AI and is reviewed by the editors.
Part of the consolidation package is a proposal to increase the tax on real estate. What should you know about this tax? And how much will you pay extra?
Who pays property tax?
Watch a video about the government’s consolidation package:
Property tax is paid by everyone who owns taxable land, a building, an apartment or a house. The tax, on the other hand, does not apply to co-operative apartments, because it is only about ownership of a co-operative share, not real estate. It does not matter that the share is an apartment.
It doesn’t matter whether you bought the property, inherited it or just got it. Ownership plays a major role here.
How often does the tax have to be declared?
Property tax returns are usually filed once. It is submitted to the tax office by the end of January, which follows the year in which the person in question acquired ownership of the property. You do not submit a tax return in subsequent years. However, the authority will ask you to pay each year.
Property tax 2024: How will it increase? By shutterstock.com
Sometimes you will need to file a tax return repeatedly. The reason for the new amount of tax is changes in the ownership of the property. This happens when you make an extension or another change in the size of the property.
How is property tax paid?
Property tax is paid every year. Most owners are interested in the deadline of May 31, when the payment must be made. If it exceeds the amount of CZK 5,000, the money is divided into 2 installments. You pay the first by May 31 and the second by November 30.
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Property tax increase
Property tax is calculated according to a set coefficient – it ranges from 1.0 to 4.5. The coefficient is assigned to the municipality according to the number of inhabitants. Each municipality can set its own coefficient in the range of 1.1 to 5.0 by decree. The local coefficient is multiplied by the tax rate.
The consolidation package will increase the property tax rate by 1.8 times. Property owners therefore pay extra. However, municipalities will be able to reduce the local coefficient to 0.5. However, it is up to the municipalities to prepare themselves for the money.
Newly, 100% of the tax revenue will belong to the municipalities.
When will the tax increase?
The tax increase should take effect from January 1, 2024. You will pay the new amount next year.
Source: mvcr.cz, financnisprava.cz, jake-james.cz