The topic of today’s post was supposed to be an explanation of when it is preferable regarding taxes to own real estate as a company rather than to own it in one´s own name. When we were preparing this topic with our tax advisor Ondřej Antoš, we de facto came to the conclusion: Regarding taxes, in the Czech Republic it is preferable in the vast majority of cases to buy real estate as a physical entity and if there is sometimes a reason for establishing a company to carry out the purchase, there are other reasons than taxes.
We discussed the reasons why it is preferable to buy real estate as a physical entity in the last article. They include especially the exemption from income tax after 5 years of ownership of real estate when acquiring real estate by the end of 2020 and after 10 years of ownership of real estate when acquiring real estate after 2021.
Finally, I would like to add that physical entities can also take advantage of other exemption options, which we discuss in the article What taxes we will pay when selling real estate.