The purchase price and mortgage conditions are not the only things to bear in mind when calculating the affordability of a property. Here are some of the additional costs you are facing when buying a house or flat in the Czech Republic.
The real estate tax is raised on both land and buildings. It depends on the type of land, such as business, residential etc. Generally the tax is charged to the owner of the real estate and is independent of his income.
The basis for this tax is the size of the floor space of a building, in square meters. The tax rates are different depending on the use of the building. The number of floors is also relevant for the taxation.
The taxation for a residential house was at around 1 CZK per square meter in 2007. The amount increases for every further floor. In addition, an inhabitants coefficient is applied. You will find more information on this at your local tax office.
The land tax is estimated on the basis of a set price per square meter. This differs between municipalities. The number of inhabitants in a municipality is relevant in calculating this.
You will have to hand in your real estate tax declaration by January 31. You will only have to make your declaration for the first year. Once it has been approved by the tax office you just need to pay the tax every year without an additional declaration, unless the amount exceeds 5,000 CZK. In the event that any changes to the house are made, a new declaration has to be made and a new tax amount calculated.
If your tax is not more than 1,000 CZK it has to be paid by May 31. Otherwise, you may split up the payment into four parts, due by May 31, June 30, August 31 and November 30.
As a home owner in the Czech Republic you have to be insured against burglary as well as fire and other disasters. Therefore you have the choice between various levels of insurance protection for your home. A good idea is having home-owner insurance. It covers for damages to the building itself and its contents in the event of fire, flood, theft, vandalism, storms, hail and lightning. It also covers for the owner's legal responsibility in case people get injured on the property.
In addition you could take out insurance against natural disasters. These policies are usually very expensive and you should consider if they are really necessary.
There are many reputable insurance companies in the Czech Republic, such as Ceská Pojištovna, D.A.S., Kooperativa and Allianz. Although all of them basically provide the same coverage in their home-owner insurance, they do differ in their additional offers. It is worth checking all of them out before deciding which one to choose.
When you have bought a new home in the Czech Republic you have to make sure that all connections for electricity, water and natural gas are available and usable on your property. If you want to use district heating you will also need to check for the connection for that.
The registration for utilities itself is quite easy. You will need to register with the company that provides the service in your area. The amount you'll have to pay is estimated on either the previous consumption, if there are previous owners, or on the number of people living in the house and the size of the house. The payment is usually on a monthly basis. You'll be entitled to refunds or you'll have to pay the outstanding balance with a final bill once a year.
For waste removal you will need to register with the local company that is responsible for your area. You then need to specify the size and number of garbage containers you will need. This can be adjusted at any time. Be aware that recycling is important in the Czech Republic. There are separate containers for paper and glass.