On June 1, 2016, the Czech Parliament issued a tax bill that modified immovable property acquisition tax regulations. Previously, the tax was payable by the transferor (seller), although the parties may contractually agree that the tax should be paid by the acquirer (buyer).
Under the new amendment, the acquiring party bears the tax obligation in all circumstances, eliminating prior flexibility between parties. The 4% tax rate on taxable consideration remains unchanged.
The tax base calculation differs in certain scenarios involving property exchanges. Ownership registration in the land register or contract effective dates serve as triggering events for tax obligations. For instance, the tax is due for sales contracts when they are registered in the land registry.