5 steps to buy a property in Prague

We know making a purchase can be confusing the first time around. But buying a property is not that complicated if you’ve done it a hundred times and you know the process, like we have … so we’re happy to share our knowhow.

In our many years helping clients to successfully purchase property in the Czech Republic, we’ve distilled things down to five simple steps that you can follow to help make your property purchase a straightforward and streamlined process. The steps are below:

Step 1 – Figure out what you really want: 

Properties should be chosen according to your intended purpose, whether you want to live in it or rent it out. Of course, one property can suit multiple purposes, but there is a difference in buying a home for your family and purchasing a flat for investment.  

Step 2 – Estimate your budget:

Now it’s time to calculate how much of your own funds you are willing to involve and add the mortgage. Of course, 100% mortgages are long gone, but 90% is still a viable option, meaning you need only 10% of the property value to invest up front. That said, with 20% you will have better conditions from the bank. Don’t forget to factor in the 4% transfer tax for the government; this payment is due in three months after the transaction is complete*.

* doesn’t apply for developers and some other exceptions

Step 3 – Secure financing:

This is our superpower. We specialise only in expats, so we know exactly which bank suits you the best; in most cases, it is not your home bank. In Czech Republic you usually get the mortgage approved only after you find a property; however, there are some tips and tricks around it and we can estimate the likelihood of approval and confirm which amount is achievable for you personally.

Step 4 – Find a property:

You’re more than halfway there. Now that you know your budget, what type of property you are looking for, and if you can finance it, only the property is missing. There are many online portals which offer thousands of flats for sale and the selection might be confusing. Don’t hesitate to ask for help; we are ready to assist you in the whole process, including searching, contacting agents, negotiations, etc. Once you find the property, we should get it appraised by the bank to confirm its value and proceed with the contracts.

Step 5 – Seal the deal:

The property is found and appraised, the mortgage is approved, and we finalise the purchase contract. At this point or even sooner, we suggest involving a lawyer to double-check all contracts. Once the purchase contract and the other documents are signed, transfer of ownership begins, and after its completion you get keys for the property and celebrate your successful purchase. And don’t forget the transfer tax!

Purchasing a property in the Czech Republic can be complicated, but it doesn’t have to be. We’re here to help. If you have any questions, don’t hesitate to contact us via email at robin@expatsfinance.cz.

Expats Finance