Authors: JUDr. Ing. Miloš Olík, Ph.D., LL.M., FCIArb, Mgr. Martin Murad and Mgr. Jan Novotný, LL.M.
On 8 July 2020, in its third reading the Chamber of Deputies passed the proposal of the Ministry of Finance to abolish the real estate acquisition tax equivalent to 4% of the total purchase price. This proposal also regulates the issue of the retroactive effect of tax exemption. In practice, this means that the buyer will not be obliged to pay real estate acquisition tax and, in addition, will be able to claim deductions of interest on its housing loan from its tax base. Also, the time test for income from the sale of real estate that is not intended for own housing is extended to 10 years, from the current 5 years. However, the extension will affect real estate acquired only after 1 January 2021. At the moment, the proposal is before the Senate, to which it was delivered on 20 July 2020, and where it should be discussed on 12 August 2020.
