Buying a new-build flat in Prague as a foreigner

Foreigners can buy a flat in a Prague new build (_novostavba_) in much the same way as Czechs, but the process has its own vocabulary, its own sequence of contracts and a few costs that are easy to miss. This guide follows the order in which things usually happen.

Rules, fees and bank policies change, so treat it as preparation for talks with a lawyer and a mortgage adviser, not a replacement.

Step 1: Check who can buy and in whose name

There are no general restrictions on foreigners buying a flat in the Czech Republic: since 2011, citizens of EU and non-EU countries alike can acquire residential property on the same terms as Czech citizens. Expect the developer, the bank and any lawyer to check your identity and ask where your money comes from, as anti-money-laundering rules require.

Owning a flat does not by itself give you a right to live in Czechia. Residence permits are a separate process with the Ministry of the Interior, although for some permit types a cadastre extract showing that you own a flat can serve as proof of accommodation. If you are from outside the EU, clarify your residence status before you commit to a mortgage, because banks look at it closely.

Most people buy in their own name. Buying through a Czech company, usually an _s.r.o._, is possible and sometimes used for investment flats, but it changes financing, accounting and tax. The Czech National Bank's mortgage limits in step 3 apply to loans to private individuals, so for companies banks set their own terms.

If you are married, ask your lawyer which matrimonial property regime applies. Under Czech law a flat bought during a marriage usually becomes joint property of both spouses, but for foreign couples this can depend on which country's law governs the marriage.

Step 2: Work out the full budget

Developers almost always quote prices for new flats including VAT. The rate is usually 12% for a flat with a floor area of up to 120 m² and 21% for larger ones.

There is no property transfer tax for the buyer: the Czech real estate acquisition tax was abolished in 2020. The main costs on top of the price are these:

• Reservation fee. Usually a fixed sum, often tens or a few hundred thousand crowns, which normally counts towards the price.
• Cadastre fee. Filing the application to register your ownership costs CZK 2,000 at the time of writing.
• Lawyer and escrow. Fees vary, so ask for a written quote covering contract review, escrow and the cadastre filing.
• Parking and storage. Garage spaces and cellar storage are usually sold separately, and in Prague a parking space often costs several hundred thousand crowns.
• Fit-out. Many new flats are handed over without a fitted kitchen, and changes you request to layouts or finishes cost extra.

Then come running costs: monthly advances for services and a contribution to the building's repair fund (_fond oprav_), plus property tax, insurance and energy. Ask the developer for the planned monthly amounts before you sign.

Step 3: Choose between cash and a Czech mortgage

Paying cash is simplest. Most buyers combine savings with a mortgage from a Czech bank.

The Czech National Bank (ČNB) caps how much banks may lend against residential property. At the time of writing, a mortgage can cover at most 80% of the property's value, or 90% if at least one applicant is under 36 and the flat is for their own housing. Limits on debt and repayments relative to income exist in the rules but are currently switched off for these loans. So you typically need at least 20% of the price in your own money, plus the costs above.

These limits apply to mortgages from Czech lenders to private individuals, whatever their nationality. They are ceilings, not entitlements. Banks' requirements for foreigners vary and change: some lend to EU citizens with Czech income on terms similar to those for Czechs, others ask for permanent or long-term residence, a minimum time in a Czech job or a larger down payment. If you earn in euros or another currency, a loan in crowns also carries exchange-rate risk.

Buy-to-let is treated differently. From 1 April 2026 the ČNB recommends stricter limits for investment mortgages, meaning loans for a third or further residential property or for a flat intended for rent: at most 70% of the value, and total debt of at most seven times annual net income. If you plan to rent the flat out, tell the bank at the start. The current limits are on the ČNB website (in Czech).

For a flat still being built, ask the bank early how it pays out money in stages. Ideally, have a preliminary approval before you sign anything that commits you to large payments.

Step 4: Find and compare new builds

Developers publish price lists on their project websites, with each flat's layout, floor area, outdoor space and status. NewBuildTracker reads these public price lists every night and shows all available new-build flats in Prague in one searchable table.

When you compare flats, look at:

• Layout. Flats are described as 1+kk, 2+kk, 3+1 and so on: the number of rooms, plus "kk" for a kitchenette in the living room or "1" for a separate kitchen. See the guide to Czech flat layouts and terms.
• Price per m². Some price lists include balconies, terraces or cellars in the area, others do not. Compare like with like, and check typical prices by district on the market overview.
• Price history. A price list shows only today's price. NewBuildTracker keeps a history for every flat, so you can see how a project's prices moved and which flats dropped in price recently.
• What sold. A flat that disappears from a price list has most likely been sold, but it may also have been withdrawn from sale. That is why such flats appear as "probably sold" among the sold or delisted flats.
• What is included. Finishes, kitchen, heating, energy performance certificate and completion date.

Visit the site, check transport, noise and what is planned nearby, and ask whether the building permit is final.

Step 5: Reserve, sign the contracts and pay

For a new build, the contracts usually follow this sequence:

1. Reservation agreement (_rezervační smlouva_): the developer takes the flat off the market for a set period, usually a few weeks, in exchange for the reservation fee.
2. Future purchase contract (_smlouva o smlouvě budoucí kupní_): for a flat under construction, it fixes the price, specification, payment schedule and completion deadline.
3. Purchase contract (_kupní smlouva_): signed once the flat exists as a separate unit, then filed with the cadastre.

Some developers combine steps, and a finished flat can go straight to a purchase contract. Check when you get the reservation fee back, for example if your mortgage is refused. The developer's lawyer usually drafts the contracts, so having your own lawyer review them is common.

Payment schedules differ: some developers want a large share of the price during construction, others only a deposit. Money is often held in escrow by a lawyer, notary or bank until agreed conditions are met. Schedules, delays and protecting your deposits are covered in the guide to buying off-plan in Czechia.

Two practical points for foreigners. Signatures on the purchase contract generally have to be officially verified, for example at a Czech POINT office, a notary or a Czech embassy, unless you sign electronically with a qualified signature. Documents filed with the cadastre must be in Czech or come with an official translation, so bilingual contracts are common; check which version prevails.

Step 6: Handover and registration in the cadastre

When construction is finished, the building authority approves the building for use, a step called _kolaudace_. Usually around this time, the developer registers the division of the building into units in the cadastre, and from then on your flat exists as a separate property that can be transferred to you.

At handover, you inspect the flat and sign a handover protocol (_předávací protokol_) listing defects and unfinished work, with deadlines for fixing them. Take your time and photograph everything. Under Czech law a buyer can generally claim defects in a property for up to five years after taking it over, and developers often add their own warranties.

Ownership passes when the cadastral office registers the purchase, with legal effect from the day the application was filed. The office cannot register it earlier than 20 days after notifying the current owner, so it usually takes about a month, sometimes longer. You then appear on the title record (_list vlastnictví_), which anyone can check free of charge in the cadastre's online viewer.

Step 7: After the purchase

Owners' association. In a building with at least five units, at least three of which belong to different owners, the owners form an association (_společenství vlastníků jednotek_, SVJ). It manages the common parts, sets monthly contributions and usually insures the building. The early meetings, where the budget and building manager are approved, are worth attending.

Property tax. If you acquire a flat, you file a property tax return by 31 January of the following year, or the next working day if that date falls on a weekend. After that, you file again only if something changes. The tax is due each year by 31 May, and larger amounts can be paid in two instalments. The Financial Administration explains the details (in Czech).

Insurance. Household insurance covers your belongings and personal liability. With a mortgage, the bank will usually require the flat to be insured and the insurance payout assigned to it.

Renting out. Rental income from a flat in Czechia is taxable in Czechia, including for owners who live abroad. Get tax advice before you find a tenant.

Before you sign: a checklist

Before you sign a reservation agreement or future purchase contract, make sure that:

• Your residence status and your bank's conditions for foreigners are clear.
• You have a preliminary mortgage approval, or the cash is ready.
• You know the full price, including VAT, parking, storage and requested changes.
• You know what the floor area includes and what is handed over.
• The reservation agreement says when the fee is refunded.
• The payment schedule, escrow and completion deadline are in writing.
• The contract says what happens if completion is late.
• You have compared the price with similar flats and with the project's price history.
• Your own lawyer has read the contracts, in a language you understand.

This guide is general information, not legal, tax or financial advice. Before you commit, talk to a lawyer, a tax adviser and a mortgage adviser about your own situation.