Kal Korff

Buying Real Estate in the EU Countries - Czech Republic
by Kal K. Korff
Internationally Syndicated Copyright © 2012 by Kal K. Korff - ALL RIGHTS RESERVED.

Ever since the European Union (EU) enlarged the membership several years ago to include the central and eastern European nations, which were once under Communist rule by the Soviet Union, there has been a huge increase in the interest of foreign companies and foreign citizens seeking to buy the real estate offerings. In this series, we will examine the ins and outs of buying real estate in the European Union. We begin by examining the Central European region and the country of the Czech Republic. Before the Czech Republic became an EU member, it was not aligned with any particular countries. Its real estate laws were its own, some of them were ‘friendly’ to foreigners while others were not. In the Czech Republic, foreigners as a rule could not buy property, even if they were from nearby Germany, unless they were permanent residents. Permanent residency was granted only after at least five consecutive years of having an annual residential visa. Approval for permanent residency was also not guaranteed. For foreign business owners, the prospect of having to wait for at least five years before being eligible to buy property was not worth the hassle. Realizing this, the Czech government passed a special caveat in its laws which said that while an individual who was not a permanent resident could not own property, a business could. This law is still in effect today. While this does not make logical sense, this was the law nonetheless. If you own your own business and you are an individual entrepreneur, you don’t own the house you buy, your business does — even though your business is owned and run by you, and no one else. Thanks to this loophole, foreigners have been able to buy many properties in the Czech Republic. To do so, one needs to file for a Zivnostensky List, which is a business or trade license. Depending on the size and type of your business, you can create or file for what is called an SRO.

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This is the equivalent of an incorporated company with limited liability. Once you have either of these licenses, your business can buy property. In the Czech Republic, real estate is much cheaper than in the Eurozone countries such as France and Germany. As a rule, goods and food in general are also less expensive. In the city of Prague, the nation’s capital where some 10.2 per cent of all Czechs live, properties of course are the most expensive. In the countryside of either Bohemia or Moravia, they are far cheaper. Houses in the regions outside Prague can be purchased for as little as $50,000, while luxury homes in Prague sell for several hundred thousand. Under communism, tens of thousands of ‘panelaks’ or apartments were built using slabs of concrete and all painted in drab grey. After the fall of Communism in the country, the government moved to privatize these socialist era flats and often sold them to Czechs for less than $10,000. Buying these old, run down panelaks can be very profitable. Naturally, you will have to refurbish them and paint them in brighter more contemporary colors, but a whole niche industry has been thriving for years driven solely by entrepreneurs who buy them and fix them up and then sell them for several times what they paid. In the smaller towns of the Czech Republic, especially in the countryside, things are of course much cheaper. Here you can buy splendid residences, including everything from homes to farms. In the border regions, especially up north near Varnsdorf along the border with Germany, many properties are very inexpensive. This is because of the lack of major industry and the casual lifestyle of the local inhabitants. Varnsdorf if also hoe to many senior citizens, it is not exactly a boomtown for the youth. Towards the southern part of the country near the border with Austria, there are also countless deals. This is also true along the border of Slovakia, which was once part of Czechoslovakia before the two countries split, forming the Czech Republic (for Czechs) and Slovakia for Slovaks. If you want to stay reasonably close to Prague, it is best to try to find property within an hour’s drive at the most. Even this close to the capital city, there are still plenty of deals to be had. There are buildings which are still being privatised or sold off by either the state or local government. Some great deals can be found among these offerings, especially if reconstruction is required. Czech Republic offers plenty of real estate pickings for every diverse taste. It is one of the better choices in the non Eurozone countries. 1.0v1

Copyright © 2012 by Kal K. Korff - ALL RIGHTS RESERVED. No part of this content may be reproduced in any form nor by any means without the express, written consent of Kal Korff. “Fair use,” does NOT apply. By reading this document, you willingly agree to be legally bound by its terms and conditions. Violators of this policy will have a felony DMCA Copyright infringement notice filed against them with law enforcement. First time offenders may be fined up to $500,000, imprisoned for five years, or both. For repeat offenders, the maximum penalty increases to a fine of $1,000,000, imprisonment for up to ten years, or both. This is a DMCA protected document, illegal copying and/or reproduction of its contents are tracked on the Internet and reported to law enforcement for felony prosecution.

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February 4, 2012 Kal K. Korff is an officially accredited internationally known author, columnist and investigative journalist.

Copyright © 2012 by Kal K. Korff - ALL RIGHTS RESERVED. No part of this content may be reproduced in any form nor by any means without the express, written consent of Kal Korff. “Fair use,” does NOT apply. By reading this document, you willingly agree to be legally bound by its terms and conditions. Violators of this policy will have a felony DMCA Copyright infringement notice filed against them with law enforcement. First time offenders may be fined up to $500,000, imprisoned for five years, or both. For repeat offenders, the maximum penalty increases to a fine of $1,000,000, imprisonment for up to ten years, or both. This is a DMCA protected document, illegal copying and/or reproduction of its contents are tracked on the Internet and reported to law enforcement for felony prosecution.

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Copyright © 2012 by Kal K. Korff - ALL RIGHTS RESERVED. No part of this content may be reproduced in any form nor by any means without the express, written consent of Kal Korff. “Fair use,” does NOT apply. By reading this document, you willingly agree to be legally bound by its terms and conditions. Violators of this policy will have a felony DMCA Copyright infringement notice filed against them with law enforcement. First time offenders may be fined up to $500,000, imprisoned for five years, or both. For repeat offenders, the maximum penalty increases to a fine of $1,000,000, imprisonment for up to ten years, or both. This is a DMCA protected document, illegal copying and/or reproduction of its contents are tracked on the Internet and reported to law enforcement for felony prosecution.

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