How to sell a restaurant in Prague, including the lease and…

Are you selling the property, the lease or the entire business? The answer determines the price, the tax and whose consent you need. A guide to valuing a restaurant business, transferring the lease and finding a buyer discreetly.

When selling a restaurant in Prague, first establish exactly what you are selling: the property, the lease on its own together with the equipment, the entire business as a going concern, or a share in the company that runs it. The price then depends mainly on sustainable profit, the length and terms of the lease, the location and the condition of the kitchen equipment and building services. In most cases the landlord's consent is also required, and it is wise to look for a buyer discreetly, with documents prepared in advance and a contract that includes a confidentiality clause.

What are you actually selling: the property, the lease or the business

Most Prague restaurants operate from rented premises. The owner of the business therefore usually sells not the property itself but a set of rights and assets that together generate income. In practice you will come across four basic options, each with different legal and tax consequences.

Sale of the building or non-residential unit in which the restaurant is located. It is bought by an investor or by an operator who wants to own the premises.
Sale of the business as a going concern (obchodní závod) under Section 2175 et seq. of the Civil Code (občanský zákoník). Everything used to run it passes to the buyer: equipment, stock, contracts, receivables, and any debts the buyer knew or must have known about.
Transfer of the lease together with the sale of the equipment. The buyer pays for the location, the ready-made kitchen and technical installations, and the time saved.
Sale of a share in the company that operates the restaurant. The company remains the same and only the owner changes, so contracts, licences and employees stay where they are.

Selling the business as a going concern is convenient for the buyer, but it does not free the seller from all risk. If a creditor does not agree to the buyer taking over a debt, the seller remains liable for its repayment. You must also notify your creditors and debtors without undue delay that you have sold the business and to whom. A careful handover record under Section 2179, which also lists known defects and missing items, protects both parties.

How a restaurant is valued: turnover, lease, location and equipment

Turnover alone says little about the value of a business. Buyers want to know how much the restaurant earns over the long term after paying rent, wages, ingredients and energy. The starting point is usually adjusted operating profit, meaning profit stripped of one-off items and of the salary of an owner who works in the business personally. The buyer will ask whether the profit will hold up without you.

The second pillar is the lease. A short remaining term, no option to extend or rent well above the local level all reduce the value, even of a profitable business. Conversely, a long lease at a reasonable rent is an asset in its own right. In Prague, buyers pay for this especially in locations with heavy footfall, in areas popular with tourists and in residential neighbourhoods where vacant restaurant premises are scarce.

The third component is the equipment and the technical and structural condition of the premises. Working ventilation and air handling, an adequate electrical supply, a grease separator and premises approved for use as a restaurant are often worth more than furniture and décor. Installing a new commercial kitchen costs time, money and permits, and buyers know how to calculate that. Used equipment, on the other hand, is valued at market price rather than at its original purchase price. A sensible price therefore combines an income-based view, the value of the lease and the realistic value of the equipment. Check it against actual completed transactions, not asking prices in listings.

Transferring the lease and the landlord's consent

Selling a Prague restaurant is practically impossible without the landlord. Under Section 2307 of the Civil Code, a tenant of business premises may transfer the lease in connection with the transfer of their business activity only with the landlord's consent, which should be given in writing. It is also sensible to conclude the lease transfer agreement itself in writing.

Whether consent is also required when the entire business is sold is a point on which the legal literature and lawyers differ, and interpretations are not uniform. The safe approach is therefore simple: obtain the landlord's written consent before you sign the purchase agreement, ideally together with their position on the rent and the lease term for the new operator. Read your own lease first, too. It often contains a ban on assignment or subletting, the landlord's right of first refusal or an obligation to restore the premises to their original condition when the lease ends. When a share in the company is sold, the tenant does not change, but leases sometimes contain a change-of-control clause that covers this situation as well.

Licences, hygiene and operating permits

Trade licences (živnostenská oprávnění) are tied to a specific person or company and therefore do not pass to the buyer of the business. Hospitality services (hostinská činnost) are a craft trade, for which the business owner or their responsible representative (odpovědný zástupce) must prove professional qualifications. Selling spirits additionally requires a licensed-trade permit (koncese), which only comes into existence once the decision becomes final. The new operator must therefore deal with it well in advance, otherwise the bar may be left without spirits for some time after the takeover. The start of operations at the premises must be notified to the trade licensing office in advance.

The buyer will also check whether the premises are approved for use as a restaurant, whether the business meets hygiene requirements and whether it has a functioning food-safety system based on critical control points (HACCP). Prepare the occupancy approval (kolaudační souhlas) or equivalent documents, inspection reports for the electrical, gas and ventilation systems, and the records of the most recent public health inspections. A buyer who receives these documents right at the start tends to push less hard for a discount on account of uncertainty.

A discreet sale without panic among staff

News of a sale can damage a restaurant before you even find a buyer. Chefs and waiting staff start looking for other jobs, suppliers tighten payment terms and regular guests begin to speculate. That is why restaurant businesses are often sold without public advertising. First, an anonymous profile of the business is prepared without its name or address; buyers are vetted and receive detailed information only after signing a non-disclosure agreement. Viewings are scheduled outside opening hours or take place as an ordinary visit by a guest.

Employees, however, cannot be kept in the dark about the transfer. When a business activity is transferred, employment relationships pass automatically to the new employer under Section 338 of the Labour Code (zákoník práce). Under Section 339, both the original and the new employer must inform the employees concerned, or the trade union or works council where applicable, of the date, reasons and consequences of the transfer at least 30 days in advance. Plan the timing so that your staff learn about the sale in a controlled way and from you, not through hearsay.

Tax implications of the sale

Taxes differ considerably between the individual options. Under the VAT Act, the sale of a business as a going concern is neither a supply of goods nor a supply of services, so no VAT is charged on the purchase price. If the seller is VAT-registered, the buyer also becomes VAT-registered and takes over the obligation to settle input VAT deductions on the transferred assets. Be careful about the line between the transfer of a business and a simple sale of assets. Incorrect classification can lead to additional tax assessments and penalties.

Profit from the sale of a business or equipment is subject to income tax. For companies, the rate in 2026 is 21%. For individuals it is 15%, rising to 23% on the part of the tax base above CZK 1,762,812. If you run the business through a limited liability company (s.r.o.) and hold your share as an individual for more than five years, the income from selling it is exempt from income tax. In addition, from 2026 the former annual limit of CZK 40 million no longer applies to shares. This option tends to be tax-efficient for the seller, but the buyer takes over the entire company with its full history and usually requires thorough due diligence and warranties. Have a tax adviser calculate the individual options in advance; sellers who are not Czech tax residents should also have their own tax position checked.

Who buys restaurant businesses

Buyers can be roughly divided into three groups. The first consists of established operators and smaller restaurant groups looking for another location, who pay mainly for the location and a favourable lease. The second group is made up of people who want to start out in the restaurant business and would rather buy a working business than build a new one. For them, transparent finances and a smooth handover are decisive. The third group is property investors. They are interested in the restaurant as a long-term tenant, that is, in a secure rental income rather than in the operation itself. Each group is best offered different documents and a different approach to negotiation.

Frequently asked questions

Can I sell a restaurant if I do not own the premises? Yes. You are selling the business, a share in the company or transferring the lease together with the equipment. Without the landlord's written consent to the lease transfer, however, the deal carries significant risk, so obtain it as your first step.

Do the employees pass to the buyer? When the business or business activity is transferred, yes, automatically by law. You must inform the employees at least 30 days before the transfer. When a share in the company is sold, the employer remains the same.

Does the buyer have to apply for a new trade licence and licensed-trade permit? When buying the business, yes, because licences cannot be transferred. If the buyer acquires a share in the company, the company's licences remain in place, but the responsible representative needs to be checked.

This article explains the general rules and is not a substitute for legal or tax advice. Always have the specific structure of the sale verified by a lawyer and a tax adviser.

DALILE LIVING can help with valuing the premises and the lease, preparing the documentation, and discreetly finding and vetting a buyer, including negotiations with the landlord. If you are only beginning to consider selling your restaurant, we would be happy to discuss, without obligation, which option makes sense in your case.