Real Estate Transfer Tax

The Government of the Czech Republic agreed that an amendment to legislative measure No. 340/2013 Coll., on Real Estate Transfer Tax, should be adopted.

The Government intends to change a subject of a taxpayer of a real estate transfer tax. According to the governmental bill proposal, an acquirer of an ownership right (purchaser) should be a taxpayer of a real estate transfer tax. Pursuant to the effective wording of the above mentioned legislative measure is a seller is a taxpayer, although the contracting parties can agree on the change in identity of a taxpayer; such agreement should not be possible any more according to the governmental bill proposal. In connection with this change should also be abolished statutory suretyship of a seller for a payment of a real estate transfer tax.

The amendment has not been passed through the Parliament of the Czech Republic so far. The Government suggests that the amendment shall become effective as of 1^st April 2016.