Buy-to-let mortgages in the Czech Republic 2026: new CNB rules

From April 2026, banks will lend no more than 70% of the value of a flat bought to let, and your total debts are capped at seven times your annual income. We show how much of your own money you need and how banks count rental income.

Investment mortgages in 2026 are governed by a recommendation from the Czech National Bank (ČNB) that has applied since 1 April 2026. For a third or any further residential property, and for a flat intended for letting, the bank will lend you no more than 70% of its value (LTV). All your debts combined may not exceed seven times your net annual income (DTI 7). This means you must pay at least 30% of the flat's price from your own funds, plus the associated costs. If you do not fit within these limits, you can secure the loan with another property, borrow through a company, or put in a larger share of your own money.

What banks treat as an investment mortgage and why it matters

The ČNB issued the recommendation on 27 November 2025. It defines an investment mortgage as a loan to buy a third or further residential property, or a residential property intended for letting. In practice, then, the number of flats you already own is not the only deciding factor. Česká spořitelna told Czech Television (Česká televize) that it treats a loan as an investment loan mainly when future rent is counted towards the applicant's creditworthiness. If you tell the bank that the rent will cover the repayments, you are placing the loan in the investment category yourself, even if it is only your second flat.

This classification determines how much the bank will lend you. The limits for owner-occupied housing have not changed: LTV is 80% (90% for applicants under 36), and the DTI and DSTI limits remain switched off. A younger investor, however, cannot use the 90% limit, as it applies only to owner-occupied housing. How banks count properties you own jointly with your spouse or in co-ownership by shares (podílové spoluvlastnictví) differs from bank to bank. Check this before you apply.

ČNB limits for investment loans and how much of your own money you need

The recommendation sets two limits and applies only to newly granted loans. Mortgages you are already repaying are not affected.

LTV 70%: the loan may not exceed 70% of the property's value as set by the bank's valuation, which may be lower than the purchase price.
DTI 7: all your loans combined, including existing mortgages, consumer loans and credit card limits, may not exceed seven times your net annual income.
Exceptions: do not count on being able to exceed the limits. Banks do not have to offer this, and some have even stricter internal rules.

The recommendation is not law, but banks follow it. They may be especially strict with clients who already own several properties. Before you apply, check the current terms with your bank.

The calculation below assumes that the bank's valuation matches the purchase price. It shows the minimum deposit at 70% LTV, with the earlier 80% limit in brackets for comparison:

Flat for CZK 8 million: own funds CZK 2.4 million (previously CZK 1.6 million), maximum loan CZK 5.6 million.
Flat for CZK 12 million: own funds CZK 3.6 million (previously CZK 2.4 million), maximum loan CZK 8.4 million.
Flat for CZK 20 million: own funds CZK 6 million (previously CZK 4 million), maximum loan CZK 14 million.

On top of your deposit, add the associated costs: the valuation, notary's or lawyer's escrow fees, the fee for registration in the Land Registry (katastr nemovitostí), and possibly an agency commission and furnishing the flat for a tenant. Banks also require a reserve for the first repayments. DTI can also be the deciding factor. If you have no other debts, a loan of CZK 8.4 million requires a net annual income of at least CZK 1.2 million, and a loan of CZK 14 million roughly CZK 2 million. If you are already repaying a mortgage on your own home, it also counts towards the limit. Having enough for the deposit therefore does not guarantee that you will get the loan.

Counting rental income: how banks calculate it and what to provide

Banks do not count rent in full. According to mortgage advisers, roughly 40 to 70% of rent already being received is counted, and usually 60 to 70% for long-term tenancy agreements. Banks generally disregard short-term lets such as Airbnb because the income is unstable. Some banks assess future rent from a flat you are only just buying very cautiously, and others do not accept it at all. The exact rules vary from bank to bank.

You evidence rent you already receive with your Czech tax return, where it is declared as rental income under Section 9 of the Income Tax Act (zákon o daních z příjmů). Banks usually want the return for the past year, and some for the past two years. You should also provide the tenancy agreements, ideally for an indefinite term or at least for one year, and statements for the account into which the rent is paid. If you are planning another purchase in a year or two, discuss with a tax adviser now how you will report the rent. Flat-rate expenses (paušální výdaje) reduce your tax, but the bank may work from your tax base, which will then be lower.

Alternatives: securing the loan against another property, borrowing through a limited company, refinancing an existing flat

Securing the loan against another property. The bank calculates LTV from the value of all the properties securing the loan. If you add a flat that is fully or largely paid off to the collateral, the bank may lend you almost the entire price of the flat you are buying without you exceeding 70%. The DTI limit still applies, however, and your entire portfolio then depends on a single loan.

Borrowing through a limited liability company (společnost s ručením omezeným, s.r.o.). Business loans are assessed under different rules from consumer mortgages. The bank looks at the company's financial performance and its business plan, and usually requires a personal guarantee from the shareholder. Interest rates and fees tend to be higher, and setting up and running the company means paying for accounting and other administration. This route is better suited to those planning a larger portfolio, and whether it is right for you should be decided by your tax adviser.

Refinancing an existing flat. If you own a flat with no mortgage or only a small outstanding debt, you can borrow against it and use the money as your deposit. The bank will, however, examine what the loan is for. If it is to buy another investment property, it will usually apply the same investment rules. You therefore will not get around the stricter conditions; only the source of your deposit changes.

Interest rates and gross yield: when leverage still pays off

According to the Swiss Life Hypoindex, the average offered mortgage rate rose from 4.89% in March to 5.79% in October 2026, an increase of nine tenths of a percentage point. Available data put the gross yield from long-term letting in Prague at around 3.5% a year, and at around 3.1% in more expensive districts such as Prague 1 and Prague 6.

The interest rate is therefore higher than the gross yield, so debt reduces the return on your own capital. On a flat costing CZK 12 million with a loan of CZK 8.4 million, first-year interest at a rate of around 5.8% would exceed CZK 480,000. Gross rent at a 3.5% yield, meanwhile, comes to roughly CZK 420,000, and out of that you still pay the repair fund contributions, insurance, taxes and any void periods. Borrowing therefore only pays off if you expect the flat to rise in value, buy below market price, increase the rent through renovation, or invest in a region with a higher yield. In Prague's premium segment today, you should generally treat financing as a tool for long-term capital growth rather than monthly income. Also work out what will happen when your fixed-rate period ends.

Buy-to-let mortgages for foreign investors and non-residents

No specific law governs mortgages for foreign nationals, and each bank sets its own conditions. EU citizens usually enjoy conditions similar to those for Czech nationals, but must provide more documentation. For applicants from outside the EU, the type of residence permit matters: holders of permanent residence have the widest choice, while for long-term residence fewer banks offer loans and they require a larger deposit. If income comes solely from abroad and the applicant has no residence in the Czech Republic, the options are very limited. Because of currency risk, banks count income in a foreign currency only in part. The loan must be secured against property in the Czech Republic, and the limits for buy-to-let mortgages apply to foreign nationals as well.

The process from choosing a flat to drawing down the loan

Before choosing a flat: have your LTV and DTI calculated for your entire portfolio and be clear about how much money you have available.
Pre-approval: with the bank's preliminary approval, you can negotiate with the seller and reserve the flat.
Reservation and valuation: the bank has the flat valued. If the valuation comes in below the purchase price, you will need more of your own funds.
Loan agreement and purchase contract: the deadlines are aligned and the purchase price is placed in escrow with a notary, a lawyer or the bank.
Drawdown: the bank releases the funds once the conditions are met, usually after the application for registration in the Land Registry (katastr nemovitostí) has been filed and the mortgage charge has been established.
After the purchase: sign a tenancy agreement, insure the flat and keep the documents for your tax return.

Frequently asked questions

Does the 70% limit also apply to a second flat? If you are buying a second flat to let, or if future rental income is included in your creditworthiness assessment, the bank will usually treat it as an investment in line with the CNB recommendation. An LTV of 80% is available only for owner-occupied housing.

Do the new rules also apply to a mortgage I am already repaying? No, the recommendation applies only to newly granted loans. However, if you switch banks when your fixed rate ends or borrow more money, ask the new bank in advance which rules it will apply when assessing your application.

Can I deduct mortgage interest from my taxes when buying an investment flat? Interest on a loan for a let property can be claimed as an expense against rental income under Section 9 of the Income Tax Act (zákon o daních z příjmů), not against your salary. Whether actual or flat-rate expenses (paušální výdaje) work out better for you, and what the implications of buying through a company would be, are questions to discuss with a tax adviser. Have your contracts reviewed by a lawyer.

DALILE LIVING can help you choose a flat to let, including properties that are not publicly advertised, and estimate the rent you can realistically expect for a specific flat. For financing and tax matters, we work alongside mortgage and tax specialists.