What changes to real estate and construction in the Czech
Republic come into effect on accession?
Acquisition of real
estate
In December 2002 the Czech Republic finished
negotiations with the EU on the conditions of accession and reached
an agreement on accession of the Czech Republic to the EU although
there were some interim provisions relating to real estate. From
the date of accession the following will apply:
-
interim period for the acquisition
of secondary houses by EU nationals shall be five years after the
accession of the Czech Republic to the EU
-
interim period for the acquisition
of agricultural land and forests by persons who do not have
permanent residence in the Czech Republic shall be 7 years after
the accession of the Czech Republic to the EU
Construction law
-
the EU is encouraging the mutual
recognition of qualifications. An Amendment to the Act on
Professional Self-government of Architects, Construction Engineers
and Urban Planners became effective on 1 May 2004. This Act
allows for the recognition of the professional qualifications of
Architects, Construction Engineers and Urban Planners qualified
outside Czech Republic
-
an interim period for lower value
added tax for construction works for the purposes of housing has
been negotiated.
Dispute
resolution
-
the Czech Republic is in the process
of ratifying the Rome Convention on Law Applicable to Contractual
Obligations (1980). Under this Convention the parties to a contract
can freely choose the governing law of their contract. Therefore,
the choice of non-Czech law as the governing law of, for example,
construction contracts will be effective without it being necessary
to indicate any links between the chosen law and the obligations of
the parties.
What can you do to ensure you comply with
the new law and prepare for accession?
For
further information please contact Hilary
McDowell.