EU watch: The Czech president approved an amendment to the Czech Foreign Exchange Act

Czech Republic

The Czech president recently approved an amendment to the Czech Foreign Exchange Act. The amendment sets out new rules for foreigners acquiring real estate in the Czech Republic. The major change concerns EU nationals.

According to the amendment it will be now possible for an EU national, who holds a Czech residence permit granted under the new visa legislation applicable to EU nationals, to acquire real estate in the Czech Republic in his/her own name.

Existing provisions of Czech law, allowing the acquisition of real estate by foreign companies having their duly licensed and registered branch on the territory of the Czech Republic will remain in effect.

The acquisition of real estate by those foreigners who are not EU nationals holding a Czech residence permit or by foreign companies not having their branch registered in the Czech Commercial Registry remains restricted. Such persons or entities may still acquire real estate only in the exceptional cases specified in the Foreign Exchange Act.

It must be also noted that the law still sets out special conditions which must be fulfilled for acquisition of agricultural and forest land.

For further information please contact Lukas Janicek at lukas.janicek@cms-cmck.com or on +420 221 098 833