MPs back abolition of real estate acquisition tax

The Chamber of Deputies has approved the abolition of the country’s real estate acquisition tax. However, MPs rejected another government proposal and preserved the possibility of deducting interest paid on mortgages from one’s income tax base. Finance Minister Alena Schillerová had wanted to abolish it from 2022.

The real estate acquisition tax rate, which replaced the earlier transfer tax, is 4 percent and is paid by the buyer. In recent years it has generated around CZK 13 billion for the state annually.