Completion Time Frame: 1 day
Completion Costs: CZK 70 per page (1-3 pages in total)
Points to Note:
Parties must obtain certified extracts from the company’s register at the respective register court. Under the assumptions of the case study it would be the Municipal Court of Prague. The extracts can be obtained in person at the court without delay. The number of pages of the extract depends on the amount of registered information (managing directors, members of the supervisory board, shareholders etc.). In practice, the extract of a standard limited liability company has usually only one to three pages. The cost of an extract is CZK 50 per page. A certified extract costs CZK 70 per page.

Step 2: A notary certifies the signatures of the transfer agreement

Completion Time Frame: 1 day
Completion Costs: CZK 30 each signature +19% VAT (2 signatures)
Points to Note:
By law, the transfer agreement does not have to be executed in the form of notarial deed and the signatures of the contractual parties on the transfer agreement do not have to be certified. However, the Cadastral Office must verify (as specified by law) the identity of the parties and manifestation of their will. Therefore, it is useful and common practice to have the signatures certified by a notary public or by an attorney or by public authorities. Notarization (by a notary public) is the most common way. The notarization takes place without delay and costs CZK 30 per each signature + 19% VAT.

Step 3: Apply for registration at the Cadastral Office

Completion Time Frame: 60-180 days
Completion Costs: CZK 500 (Registration Fee)
Points to Note:
Parties apply for registration at the Cadastral Office of Prague (Registry) after gathering all the documentation. There is a lump sum fee payable together with the application to register the property in the amount of CZK 500, which is paid by buying stamps at the Registry.
After the application is received, the adjudication procedure will take about 60 days as specified by law. In practice, it may take up to 6 months in Prague.
When the procedure is over, a notification of the transfer of ownership is issued. The Registry delivers the transfer agreements to the parties with a remark on the transfer agreement.

The documentation requirements are as follows:
Transfer agreement in a number of counterparts that equals the number of parties plus two counterparts (originals or certified copies), in this case 4 counterparts (signatures certified in Step 2)
If the transfer agreement was not signed by the persons authorized by law to act on behalf of the companies, powers of attorneys with certified signatures shall be attached.
If the application is filed by proxy, power of attorney shall be attached.
Certified extracts from the company’s register shall be attached by each party (obtained in Step 1).

Step 4: Pay the Real Estate Transfer Tax

Completion Time Frame: 1 day
Completion Costs: 3% of the property price (Real Estate Transfer Tax)
Points to Note:
A Real Estate Transfer Tax must be paid to the tax authority within 3 months following the month of the registration. The Cadastre is responsible for informing the tax authority about the transfer so that they record it and can collect the tax. Registration of the transfer is not conditional upon payment of the tax.
The tax rate is 3 % of the higher of the purchase price and the value (as estimated by an expert to be paid by the parties to the transfer agreement). The Transfer Tax can be paid at the Tax authority, at a commercial bank, or even online.