As of 1 November 2016, the buyer will be responsible for paying the real estate transfer tax in the Czech Republic.
As we have previously informed you, the Czech real estate transfer tax will undergo significant changes and it will no longer be possible for the buyer and seller to decide between themselves who pays the tax. Further, the statutory guarantee will be abolished so that neither the buyer nor the seller will act as a guarantor. The tax rate will remain unchanged at 4%.
The changes should simplify real estate asset deals by removing the potential risk of the buyer having to step in and pay the tax if the seller does not fulfil its duty.
Share deals will remain unaffected, as the real estate transfer tax does not apply when interest in a company, rather than real property, is being transferred.