Jan Kohout Partner PROCHÁZKA / RANDL / KUBR attorneys at law Third CIS Local Counsel Forum Panel on Real Estate and Tax Outline of Real Estate Law and related Taxes in the Czech Republic 27 June 2008

land buildings and other constructions firmly connected to land ("Constructions") residential and non-residential units (apartments, offices, etc) similarity and differences between Czech and Russian Real Estate legislation Types of Real Estate

Public registration Czech Real Estate Register (Cadastre) re-established in 1993 data in the Real Estate Register (including ownership titles) –bona fine / primary evidence –could, however, be successfully challenged scope of data, maps and other documents publicly available

Real Estate registered in the Real Estate Register land buildings and certain other Constructions (exceptions exist) mandatory specifications enabling registration in the Real Estate Register

Real Estate not registered in the Real Estate Register underground Constructions linear Constructions, e.g. electricity lines, pipelines, roads, railways, funicular railways, etc. small Constructions / buildings (up to 16 m 2 )

Specific issues buildings / Constructions – separate Real Estate / do not join ownership of the owner to the land – different concept than under German or Austrian law (change is subject to legislation process under new Czech Civil Code) restitution claims duplicate ownership title plots of land registered under old numbering concepts (PK, GP, etc.) buildings under construction

Limitations imposed on foreigners EU / non-EU members legal entities / natural persons

Taxes Real Estate Tax –payable annually –rather low (depends on size, from CZK 0.10 up to CZK per sq m.) Real Estate Transfer Tax –payable after transfer registration –3% of the purchase price (or estimated value if higher than the purchase price)

List of most important legal acts Czech Civil Code Act No. 344/1992 Sb., on the Real Estate cadastre of the Czech Republic Act No. 72/1994 Sb., on the ownership of flats (and non-residential units) Act No. 265/1992 Sb., on the registration of ownership titles and other rights in rem to the Real Estate Act No. 219/1995 Sb., Act on foreign exchange Act No. 95/1999 Sb., Act on conditions of transfer of agricultural and forest land Treaty of accession 2003, Formal announcement of the Ministry of Foreign Affairs No. 44/2004 Sb.m.s.

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