Transfer of real estate from company to private ownership

JUDr. Jakub Vozáb, PhD. 15.02.2016

Transfer of real estate to a member of the company without having to pay real estate acquisition tax (real estate transfer tax) in the Czech Republic

In the past, Czech laws forced many foreigners to establish a limited liability company for the purpose of acquiring and owning real estate, but the conditions have changed and both foreigners from the EU and foreigners from third countries can now purchase real estate in the Czech Republic directly, without any restrictions. Instead of a costly transfer of real estate and the subsequent liquidation of the company, it is possible to transfer the company's assets to a member of the company, and the member of the company (also a natural person) takes over all the assets and liabilities of the company, and the company is deleted from the commercial register in a single process without having to pay real estate acquisition tax ( real estate transfer tax) and the costs of liquidating the company.

The total cost of such a transaction is 45,000–80,000 CZK without VAT, regardless of the amount of the company's capital. After providing the necessary documents, we are able to confirm in advance the total final price of this transaction.

If you are interested in obtaining more information about the transfer of capital to a member of the company, please contact us.

We would like to inform you about the upcoming news of Senate legislative act no. 340/2013 Coll., On real estate acquisition tax, with expected entry into force on April 1, 2016, according to which, in case of capital transfer to a company participant, real estate acquisition tax (real estate transfer tax) must be paid.

** If necessary, the transfer of capital should be carried out as soon as possible, because it is assumed that from April 1, 2016, the transaction costs will increase by 4% of the estimated value of the property, which is a transfer from the company to a member of the company by transfer of property. **

See publication of the Chamber of Deputies of the Parliament of the Czech Republic no. 639 at http://www.psp.cz/sqw/text/tiskt.sqw?O=7&CT=639&CT1=0.

** Keywords **: transfer of real estate to a participant of a company, transfer of capital to a participant of a company, transfer of property to a participant of a company, dissolution of a company and transfer of property to a participant of a company, dissolution of an LLC and transfer of property to a participant of a company, dissolution of a company and transfer of capital to a participant company, liquidation of LLC and transfer of capital to a company participant, liquidation of a company and transfer of real estate to a company participant, liquidation of an LLC and transfer of real estate to a company participant, liquidation of a company and transfer of assets to a company participant, liquidation of an LLC and transfer of assets to a company participant, liquidation of a company and transfer of real estate to a company participant, LLC liquidation and transfer of real estate to a company participant, company liquidation and capital transfer to a company participant, LLC liquidation and capital transfer to a company participant