3 basic conditions:
- sale of a family house or flat where the requirement to live there for 2 years immediately before sale was not met
- sale of property acquired before 31.12.2020 where the 5-year ownership requirement was not met
- sale of property acquired after 1.1.2021 where the 10-year ownership requirement was not met
the lifeline:
- You reinvest the proceeds in your own housing needs.
What counts as your own housing needs?
- construction of an apartment building, family house, flat or residential unit
- purchase of land on which construction will begin
- purchase of an apartment building, family house, unfinished building or residential unit
By when must I reinvest the money?
At least one year before the sale or no more than one year after it.
You sold a property in 2023 for CZK 2 million. If you can demonstrate that you spent CZK 2 million on your own housing needs in 2022, 2023 or 2024, the income is exempt.
Is that everything?
No – here is the most important point! Do not forget to inform the tax office, using the prescribed simple form.
By when?
The same deadline applies as for filing a tax return: by 2 April 2024 on paper, or electronically through a data box by 2 May 2024.
What if you do not submit the notification?
The notification requirement is itself one of the conditions for exemption. If you do not submit it before the statutory deadline, you will not face a fine, but you cannot claim the exemption. So it is better to file on time. 😉
If you are still unsure whether the income notification requirement applies to you or how to complete it, please get in touch and we will work it out together.