Residency in Czech Republic can be obtained as long as certain legal requirements are met. One of them refers to the physical address where the person resides. Currently, there isn’t any current program that allows foreigners to simply rent/buy property for residency in Czech Republic.
| Quick Facts | |
|---|---|
| Nationalities accepted (EU/Non-EU) | Applicable to non-EU citizens |
|
Business investment option |
Yes |
|
Real estate investment option |
Yes |
| Other investment options (if available) |
Investments in: – know-how, – equipment, – other tangible and intangible assets |
| Residence or direct citizenship option |
Long-term residence, which can open the pathway to permanent residence if conditions are met (no direct citizenship route) |
| Direct immigration with family members |
Yes |
| Family members allowed to join the program |
Close family members and children |
| Timeframe for obtaining citizenship/residency by investment |
– 5 years for permanent residency by investment, – 10 years for citizenship |
| Dual citizenship permitted |
Yes |
| Reasons to choose the Czech Republic |
– strategic location, – skilled workforce, – reliable infrastructure, – institutional support for businesses, – large FDI market |
| Visa free travel to other countries (approx. number of countries) |
188 (142 visa free, 37 visa on arrival, 9 eTA) |
| Living requirement in the Czech Republic |
– |
| Residence visa/citizenship processing time |
– 30-45 days for the residence visa, – 180 days for citizenship |
| Additional financial requirements for family members |
– |
| Personal income tax rate |
– standard tax rate: 15% for gross income up to CZK 1,867,728 (calculated for 2022) – 23% for the amount that exceeds CZK 1,867,728 |
Although this is possible in other European countries, in Czech Republic, obtaining residency by investment is available in the case of those investing in this country, but certain financial requirements and conditions must be met. These can be presented by our immigration lawyer in Czech Republic.
It is important to know that residency in Czech Republic is issued as long as a person, regardless of his or her nationality, has a residential address in this country, which means that, upon their arrival, the foreigner must make the necessary arrangements in order to rent a property here.
It is worth knowing that those moving to Czech Republic must make the proof of their residential address in this country when they apply for a residence permit, regardless of its type (temporary, Czech long-term residence permit or permanent residence permit).
This is one of the basic requirements necessary when one applies for an immigration document with the Ministry of Interior. Having a permanent residency here allows a foreigner to apply for Czech citizenship as well.
Table of Contents
How can one acquire residency through investments in Czech Republic in 2024?
As presented at the beginning of the article, a person can obtain Czech residency by investment when investing in this country.
The advantage provided by this program is that the documents can be obtained in a period of 30-45 days and if the foreigner has a family, the document will be extended to the family members as well. This type of program is seen as a golden visa, as the minimum investment is rather large.
We also mention that the procedure can be completed without the need for the foreigner to be present in this country during the formalities and in this case, our immigration lawyer in Czech Republic can easily represent foreigners throughout all the processes involved in obtaining the residency or the Czech citizenship.
In this particular case, the foreigners, who must be foreign businessmen, should comply with one basic requirement: they must invest at least CZK 75 million (or EUR 2,850,000) in the local economy, this being the investment threshold that can take the form of various types of assets. From this sum, up to 60% can be invested as real estate properties, physical equipment or know-know.
At the same time, the foreign businessman must be able to create, through his investment or business, at least 20 jobs offered to EU citizens, which must be maintained for the duration of the person’s residency in Czech Republic. Along with the application form, the investor must present a clear business plan.
The advantages of the investment visa in Czech Republic
Persons who want to immigrate to Czech Republic under this program must know that the investment visa (through which the investor can acquire permanent residency) has many other characteristics and advantages.
For instance, it has a reduced processing period – as said above, the visa can be issued in 30-45 days after the application was made, compared to the average processing of 120 days applicable to other business visas. The legislation on Czech immigration states that this visa can be extended to the company’s passive shareholders, who can obtain the visa for a period of 2 years.
This investment program allows foreign investors to relocate here with their family members – this is also true for other business immigration programs, only that in this case, the family members will obtain their immigration documents rapidly.
Persons who want to buy/rent property for residency in Czech Republic as a consequence of investing here and who want to relocate with their family members must know that the family members will obtain the necessary documents in only 90 days.
The family members will obtain a long-term residence permit that will be issued for a period of 2 years; for other immigration programs for business purposes, where family reunification is involved, the issuance of the necessary paperwork takes 270 days.
So, a major benefit of this program is that it has an expedite approach to the issuance of documents for qualifying investors, considering the capital invested in this country. We invite you to watch a short video on purchasing a property in Czech Republic (we mention that the law was changed and now it is not possible to obtain residency based on real estate investments):
What documents should the investor in Czech Republic prepare?
For this investment program, the investor is required to prepare many documents, on which our immigration lawyer in Czech Republic can provide legal assistance. According to the Ministry of the Interior of the Czech Republic, interested applicants should submit the following:
- a valid passport and a recent photograph;
- a document which states that the investor has access to the necessary funding for making a significant investment in Czech Republic (the document must be issued with maximum 30 days before the application date);
- the financial documents of the company the investor owns in his or her country – it is necessary to lodge the latest 2 financial statements.
It can also be necessary to provide evidence regarding the source of the available funds to be invested in Czech Republic. All applicants must present a document that shows they aren’t involved in any bankruptcy case. This is applicable to both the investor and the company that he or she owns. Regarding the assets that will be invested in this country, certain documentation will also be necessary.
Here, applicants must submit documents regarding the origin of the assets that, as well as an expert evaluation of the respective assets. The file must also contain documents concerning the legal entity owned by the investor – its registration certificates, statutory documents and others have to be evidenced in the application file.
Another basic requirement is to have a travel medical insurance that will cover the entire duration of stay in Czech Republic, and which recognized by the authorities of this country. As said above, the file must contain the business plan concerning the investment in Czech Republic. A proper business plan must contain information concerning the following:
- the targets of the investment;
- the risk assessment regarding the implementation of the plan;
- the reasons for making the respective investment in Czech Republic (and in a certain region);
- details about the implementation of various stages of the project;
- details regarding the services/products to be sold (where applicable);
- details on the protection of workforce.
Obtaining Czech citizenship
Persons who are entitled to apply for Czech citizenship will be issued with a certificate of citizenship if their application will be approved by the local institutions. If this applies, the certificate can be issued in 1-2 months (for applicants who were born in Czech Republic or who used to be Czech nationals at some point) or in 3-6 months for other situations.
As a person who is not related in any way with a Czech national, the only option for citizenship is citizenship by naturalization. For this, the foreign applicant, regardless of the reason of arrival in this country, must obtain permanent residency in Czech Republic. After becoming a permanent resident, the person can qualify for the right to apply for citizenship following the procedure regulated by the law.
Is it possible to acquire Czech Republic citizenship by investment?
As presented earlier in this article, foreigners are entitled to apply for citizenship in Czech Republic. Most foreigners will qualify for this under the rules of citizenship by naturalization, a category foreign investors can also qualify for.
Although in many countries there are special immigration programs addressed to foreign investors acquiring citizenship, in Czech Republic citizenship by investment is not possible. This happens because the country’s officials want foreign investors to show the same level of commitment to Czech Republic as it is required in the case of other categories of foreigners who opt for Czech Republic immigration.
Typically, citizenship by investment is defined by an expedite citizenship procedure under the account of a large investment in a country’s economy, it follows the same principles as the ones applicable to those who opt to rent/buy property for residency in Czech Republic.
In this case, the only path to Czech Republic citizenship by investment is the residency program for foreign businessmen. Investors can also opt for the long-term visa for entrepreneurs, which is issued initially for a period of 1 year, but extensions are granted, if the investor maintains the investment requirements.
This program is more advantageous and more accessible, as the financial requirements are much lower compared to the above-mentioned program. Here, investors who immigrate to Czech Republic must make the proof of having sufficient financial funds and the threshold is of only CZK 156,500 per month.
For this program, the investor must initiate the extension of the residence permit in Czech Republic prior to the expiry date of the first document, a formality that must be conducted through the offices of the Ministry of the Interior.
After this, investors can apply for permanent residence in Czech Republic, which can then open the possibility of acquiring citizenship. Of course, this is not a program for Czech Republic citizenship by investment, but foreigners will initiate the citizenship formalities on the account of arriving here initially for investment purposes, as businessmen.
Our immigration lawyers in Czech Republic can offer the necessary legal support during your visa application, for any of the business/investment programs available here. Of course, you can rely on our team throughout your years of stay in Czech Republic for consultancy services regarding any of your immigration obligations.
What should a foreigner know when purchasing a Czech property in 2024?
Foreigners are allowed to purchase properties in Czech Republic and this applies to foreigners from outside the European Union (EU) as well, but the legal procedures applicable to each category of nationals can vary.
For example, EU citizens do not need to comply with any particular regulations. They can easily move here and make the proof of residence at a physical address in Czech Republic, after which they can start search for a suitable home.
Although not a member of the EU or the European Economic Area (EEA), the United States of America (USA) nationals can also acquire properties in this country, under the regulations of an investment protocol signed by the Czech and American authorities. Those moving to Czech Republic should know that, when purchasing a property, the following transaction costs will apply:
• the legal fees related to the transaction are to be paid by the buyer (accounting for 1% from the value of the property);
• properties are charged with the value added tax, which, in Czech Republic, is imposed at a rate of 21%;
• the buyer is also required to pay the registration fees (charged at 0.01%-0.02%);
• the agent’s fee is also a fee payable by the buyer, and it varies from 2.5% to 5%;
• upon the sale of a property, the seller has to pay the real estate acquisition tax, charged at a rate of 4%.
If you want to purchase a property for the purpose of becoming a permanent resident of Czech Republic, you must know that the legislation regulating immigration matters has recently been modified.
There aren’t major modifications, but foreigners who want to obtain a Czech permanent residence permit will also have to comply the Czech language standards. Thus, starting with 1st of July 2021, the holders of permanent residents are required to know the Czech language at a A2 level.
Under the Amendment No. 206/2011, foreigners are allowed to own properties in this country, regardless if they obtained a short-term or a Czech long term residence permit that is issued in this country.
According to Eurostat, the prices have slightly decreased in the last years at a EU level and in Czech Republic as well, as, in the 3rd quarter of 2023, the average property house prices decreased by 3.5% compared to the same quarter of the previous year (data for Czech Republic). As such, it provided the opportunity to purchase real estate at lower average prices in 2024.
The average price of an apartment in Prague in 2024 is around CZK 4,4 million (a property of 70 square meters), while larger apartments can cost more than CZK 7 million. It is also important to know that the price of the property is influenced by its type, not only the location and size. For instance, in the last years, it was observed that new property dwellings are sold are higher prices compared to older properties.
It must be noted that the definition of a property takes into consideration both residential real estate and private land. Considering that the procedure for acquiring a property here is more complex, we invite those moving to Czech Republic to request information or legal representation from our lawyer.
