Are you considering buying a flat in Prague? If so, you’re not alone!
The Czech capital has become a popular destination for both tourists and expats alike, thanks to its rich history, vibrant culture, and affordable cost of living. But how much does it actually cost to buy a flat in Prague? Let’s take a closer look.
The Cost of Real Estate in Prague
First things first: how much can you expect to pay for a flat in Prague? As with any major city, prices can vary widely depending on factors like location, size, and condition. According to data from Numbeo, the average price per square meter for an apartment in the city center is around 80,000 CZK (approximately $3,500 USD), while outside of the city center the average drops to around 60,000 CZK (around $2,600 USD).
Of course, these are just averages – you may be able to find cheaper or more expensive options depending on your preferences. For example, flats in newer buildings or those with high-end amenities may be more expensive than older or more basic options.
Additional Costs
Keep in mind that when you’re buying a flat in Prague (or anywhere else), there are additional costs beyond just the purchase price. These can include:
- Real estate agent fees: typically around 3% of the purchase price
- Legal fees: can range from 20-30,000 CZK ($900-$1,300 USD) depending on the complexity of the transaction
- Taxes: when buying property in Prague as a foreigner, you’ll need to pay transfer tax at a rate of 4% of the purchase price. Additionally, there may be other taxes or fees associated with owning property in the Czech Republic.
Financing Options
If you don’t have the cash on hand to buy a flat in Prague outright, you may be wondering what your financing options are. The good news is that there are several options available to both Czech and foreign buyers.
One option is to take out a mortgage from a Czech bank. This can be a good choice if you have a steady income and can provide proof of employment and income. Interest rates on mortgages in the Czech Republic are generally low, making it an affordable way to finance your purchase.
Another option is to use financing from your home country. This may be easier if you’re already established in your home country and have a good credit history there. However, you’ll need to make sure that the terms of the financing allow for purchasing property abroad.
Conclusion
Buying a flat in Prague can be a great investment, whether you’re planning to live there full-time or use it as a vacation home or rental property. However, it’s important to do your research and understand all of the costs associated with buying property in the Czech Republic. By working with reputable agents and legal professionals, and exploring all of your financing options, you can find the perfect flat for your needs and budget.