Government coalition plans major changes to mortgage tax relief

The governing coalition is preparing significant changes to state support for mortgages from 2028,Finance Minister Alena Schillerová (ANO) confirmed in a TV debate on Sunday.

Under the proposal, people under the age of 36 would receive more generous tax deductions on mortgage interest payments than they do at present. Some older and wealthier borrowers, however, could lose part of their existing tax relief.

Finance Minister Schillerová (ANO) plans to present a detailed reform proposal to the government by the end of June.

The parliamentary opposition argues that a more effective way to help borrowers would be to push for lower interest rates, which the government can influence by reducing the budget deficit. However, interest rates are primarily determined by the Czech National Bank and the rate of inflation.