1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Cost
    3. VAT
    4. Utility search (each service)
    5. Cost
    6. VAT
    7. Land registry search (per search)
    8. VAT
    9.  Company search, per company
    10. VAT
    11.  Survey/Valuation fee, approx
    12. VAT
    13.  Phase 1 Environmental survey
    14. VAT
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2. Cost
    3. VAT
    4.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate

jurisdiction

Czech Republic

1. Due diligence costs for the purchase of real estate

Cost

Variable

VAT

N/A

1.2 Utility search (each service)

Cost

Depends on locality (e.g. Prague more expensive) and proposed use of land and is not always necessary. Average cost: EUR 3,500.

VAT

N/A

VAT

Nil

1.4 Company search, per company

VAT

21% (if applicable)

1.5 Survey/Valuation fee, approx

VAT

21% if company is VAT-registered

1.6 Phase 1 Environmental survey

VAT

21% if company is VAT- registered

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost

4% transfer tax on purchase price or valuation of real estate asset. Normally payable by seller (buyer is guarantor), but by buyer if agreed by parties. No duty on first ever transfer where the building has not yet been used.
As of 1 November 2016, the tax is payable by the buyer and the parties cannot agree differently.

VAT

21% (15% for transfer of smaller residential properties)

2.2 Transfer duty

3. Tax or duty on the acquisition of shares in a company owning real estate

Nil

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

Proceeds subject to income tax. Individuals exempted if time period between buying and selling exceeds five years.
Income tax rate: 19% (corporations), 15% (individuals).

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

Proceeds subject to income tax. Individuals exempted if time period between buying and selling of shares exceeds five years. Income tax rate: 19% (corporations), 15% (individuals).
Companies (tax residents of the Czech Republic and the EU) exempted if selling at least 10% share on the transferred company owned by the selling company continuously for at least 12 months.