New VAT Rules Impact Czech Real Estate Sector Starting July 2025

• VAT changes in the Czech Republic will affect the real estate sector starting 1 July 2025
• New VAT rules for real estate transfers and revised definitions of building land and residential buildings
• VAT exemption rules for real estate transfers will change, with a shorter period of two years for VAT applicability
• VAT will apply only to the first transfer after construction or substantial change
• Subsequent sales within two years will be VAT exempt
• Substantial change in property renovations defined by costs exceeding 30 percent of future sale price
• New definition of building land based on zoning documentation and construction commencement
• Residential buildings must be recorded in a special register for VAT purposes
• Ministry of Finance decree regulates floor area calculation for VAT purposes, defining terms and methodology

Source: taxathand.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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