Who is required to file a tax return for real estate?
Issued 19.01.2017
The deadline for
submitting a tax return for real estate is approaching fast (31 January 2017).
Do you have a tax return ready for this type of tax and do you know how to do
it?
Tax return
First, it
is necessary to mention who is, in principle, obliged to file a tax return for
real estate tax. Simply put, this obligation does not apply to those who filed
a tax return for a given property in one of the previous years. Hence, if you
own a real estate for many years, then you have filed a tax return in the first
year after acquiring ownership of the
property, and in the following years you are only paying state tax.
However, if
you bought a plot of land, an apartment or a house last year - meaning that
your property was registered at the relevant cadastral office between 1.1.2016
and 31.12.2016, then you are subject to the tax return until the end of
January, ie until 31.1.2017.
Rate, coefficients
and tax amount
The total
tax is calculated by adding two partial taxes, namely taxes on land and taxes
on buildings and units.
Land tax
Each type
of plot of land has a tax rate for 1 m2. This basic rate is then multiplied by
the coefficient by categories broken down by population. Additionally, each
municipality or town may, by a binding decree, modify a municipal category or
otherwise adjust the amount of that coefficient.
For
example, if you own a building plot in Prague with an area of 500 m2,
the basic rate will be CZK 2.00/m2, the coefficient is in accordance
with Act 4,5, but by the Decree it is increased to 5.00. We will then calculate
the land tax as follows: 500 x 2 x 5. The resulting land tax will be CZK 5,000.
Tax on
buildings and units
Building
tax is calculated similarly to the land tax, according to the tax rate for a
particular type of building and consequently by a multiplication of
coefficients.
For
example, if you bought an apartment in Prague with an area of 65 m2,
then the area will be multiplied by the coefficient (1,20) and then similarly
to the land tax: 65 x 1,20 x 2 x 5. The unit tax will be CZK 780.
Submitting a tax
return
You do not
have to worry too much about tax calculation and filing tax returns and you can
handle it yourself too. An excellent
help is an electronic form for tax,
which can be found on the portal of the Ministry of Finance. You can find it
here: https://adisepo.mfcr.cz
Select:
Electronic Forms -> Tax return for Property Tax - from 2011 inclusive.
At this web address you can comfortably fill in the
tax return, and the tax portal will calculate the tax rate, the coefficients
and the total amount of the tax for you, according to the data you provide. You
will check for any errors and deficiencies in the tax return. Subsequently, you
export the form from the tax portal and print it or sent it directly to the tax
office.
