We would like to inform you about the decisions taken at today´s government session:

Today, the Czech government has decided to abolish the real estate acquisition tax for certain ownership transfers. This will apply to all transfers of ownership of real estate, regarding which the effects of the registration of change of ownership in the land registry occurred during December 2019 and later. In previous emergency legislation, only the deadline for filing and paying this tax had been prolonged from March 31st until August 31st. Therefore, in case this tax was already paid, it will be refunded.

Furthermore, the Government has decided to prolong the time limit for the exemption of profit from the sale of real estate from income tax from five years to ten years. This will apply in case of real estate which will be acquired by natural persons after January 1st, 2021. However, this extension does not apply to real estate, in which the seller, being a natural person, had his permanent residence – in this case, the existing time limit of 2 years remains.

The Government also discussed the ongoing possibility to deduct interests on loans, while these interests can be further deducted from the income tax base in case of all transfers of ownership of real estates, for which the legal effect of the registration of ownership tin the real estate land registry will occur until the end of 2021.

These legislative proposals are now heading to the Chamber of Deputies, where they will have to be approved within the legislative process. We will keep you informed about further developments.

Last but not least, today the Government has agreed on the final wording of the crisis regulations concerning cross-border workers. Newly, cross-border workers are obliged to get tested for COVID-19 at regular intervals of 30 days (not 14 days, as it has been the rule so far).