Overall, the process of purchasing property in the Czech Republic by a foreign national is a rather simplistic process. There are some additional requirements imposed upon a foreign national when it comes to the purchase of real estate in the Czech Republic at this point in time.
At the present time, the Czech government is working to liberalize and streamline the laws governing the purchase of real estate by a foreign national. Much of this effort is being expended due to the Republic’s admission into the European Union.
At the present time, a foreign national from the European Union can purchase and own real estate in the Czech Republic directly. Historically, in the Czech Republic, a foreign national from any nation simply could not purchase and own a home in the Czech Republic directly. In other words, in order to purchase and own real estate in the Czech Republic in days gone by, a person who was a foreign nation needed to establish a limited liability company in the Czech Republic for the purpose of taking title to real estate in the Czech Republic.
In today’s Czech Republic, a citizen from one or another of the nations that comprise the EU no longer needs to establish a limited liability company in the Czech Republic to take possession or and title to property within the Czech Republic. Instead, a citizen of one or another of the EU member nations can own real estate in the Czech Republic directly.
At the present time, residents and citizens of other countries the world over that are not a part of the EU cannot buy real estate directly in the Czech Republic at this time. With that said, there is determined movement being had on the part of the Czech Republic’s government to revamp the provisions of the law that prevent direct ownership of real estate by foreign nationals who are not part of the EU. These changes in the law are expected to take effect within the Czech Republic within the coming decade.
In any event, and has been mentioned previously, a foreign national from a non-EU can buy and possess real estate in the Czech Republic after establishing a bona fide limited liability company in the Czech Republic, the limited liability company being the entity that will take title to real estate in the Czech Republic on behalf of the non-EU foreign national.
Once the limited liability company has been established by the non-EU foreign national, in some instances the purchase of property in the Czech Republic can be a rather simple two step process. In some instances, the purchase of real estate can be as simple as executing one written contract for the purchase of real estate. Subsequent to the preparation and execution of the contract for the purchase of real estate, in some instances the only other step that must be taken to complete the sale and transfer of ownership in the subject real estate is the filing of a petition regarding the sale and transfer with the Cadastral Registry.
In some instances in the Czech Republic a foreign national will be interested in buying real estate that is in the process of being developed. In other words, the foreign national has an interest in buying real estate that includes a building or structure that is in the process of being constructed or that is slated for construction. The buyer desires to have the construction of the building, the development of the property, be a part of the overall sales transaction. In such a situation, rather than signing a simple contract for the purchase of real estate, the purchaser will execute what is known as a contract for future purchase contract. In other words, the buyer is executing an agreement to enter into a sales contract upon the completion of the construction or development on the subject property in question.