Income Tax on Property Sales and Statutory Holding Periods
When a property sale is exempt from tax, how the ten-year rule works, and exemptions for primary residences.
The Ten-Year Holding Period
For properties acquired from 2021 onwards, proceeds from a sale are exempt from tax after ten years of ownership. For properties purchased prior to this, the original five-year rule applies.
Primary Residence Exemption
If you have maintained your primary residence in the property for at least two years immediately prior to the sale, the proceeds are exempt. The same exemption applies if you reinvest the proceeds into your own housing needs within one year.
The CZK 40 Million Threshold
The exemption applies to income up to CZK 40 million per year. Any proceeds exceeding this threshold are subject to tax. We always recommend consulting a qualified tax adviser regarding your specific circumstances.