Foreigners to be allowed to buy freehold in the Czech Republic
Foreigners to be allowed to buy freehold in the Czech Republic
Foreign investors should be able to buy residential property in the Czech Republic from next May. The Czech government is expected to approve the move, which would allow investors to purchase property on a freehold basis.
At present many foreign investors can only purchase
property in the Czech Republic through a business, according to Property Wire.
It is thought that the Czech parliament will vote in favour of the amendment as it is a condition of
EU membership that must be enacted within five years of accession. The Czech Republic joined the EU in 2004.
"[Investors] will welcome the amendment. We expect a lot of interest in middle and high end property," said Ondrej Novotný from property consultants King Sturge.
However, due to the current economic climate, a
property boom is not expected immediately. "The financial crisis makes any judgement of what will happen in six months difficult. Right now investors are very cautious," said Gabriela Dilhelová from the real estate company Efektim.
Nevertheless, allowing foreigners to
buy freehold will bring benefits, claims Jirí Fajkus from Czech real estate agency Real Spektrum. "The amendment will bring the Czech Republic closer to western Europe. The property market will be more mature."
Since the Czech Republic joined the EU, the property buying process has been eased for EU citizens.
According to the Global Property Guide, such investors can purchase
real estate in the Czech Republic directly if they have been granted the right to reside in the country. However, the recent announcement will further simplify the procedure.
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