The Lower Chamber of Parliament has approved an amendment which would formally remove the remaining restrictions for foreigners buying property in the Czech Republic. The bill reflects the expiry of the transition period applicable to agricultural land and forestry areas that the Czech Republic negotiated upon their accession to the EU.
Since joining the EU, the Czech Republic had been allowed to apply a 5-year transition period for residential properties and a 7-year period for agricultural land and forests. As the latter transitional period has not been extended, the general EU principle of free movement of capital shall prevail. Consequently, as of 1 May 2011 there shall effectively be no legal obstacle for a foreign investor to buy any kind of real estate in the Czech Republic. This change will open new opportunities for foreigners to acquire agricultural and forest land, which is still significantly cheaper than in Western European countries.
Law: Act No. 219/1995 Coll., Foreign Exchange Act.
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The original publication date for this article was 13/05/2011.