Rental income tax in the Czech Republic for non-residents (2026)

Do you live abroad and let a flat in the Czech Republic? We explain when to file a Czech tax return, which expenses you can claim, how to avoid double taxation and how to handle everything remotely.

If you are a tax non-resident and let a flat in the Czech Republic, the rent is subject to Czech income tax. Under double taxation treaties (smlouvy o zamezení dvojího zdanění), the right to tax income from property lies primarily with the country where the property is located. You must file a return for 2026 if your rental income exceeds CZK 50,000. The tax base (rent minus either a 30% flat-rate allowance or your actual expenses) is taxed at 15%.

Who counts as a non-resident for the Czech tax office

The Income Taxes Act (zákon o daních z příjmů) distinguishes between two groups of taxpayers. A tax resident is someone who has their home in the Czech Republic or habitually stays here, meaning they spend at least 183 days in the country in a calendar year. Residents are taxed in the Czech Republic on their worldwide income. Non-residents are taxed in the Czech Republic only on income from Czech sources, and this includes rent from a flat or house located here, regardless of your citizenship.

In practice, both countries may consider you a resident, for example if you have a home in both Prague and Munich. In that case, the rules of the relevant double taxation treaty decide, assessing in turn your permanent home, your centre of vital interests, your habitual abode and your nationality. It is therefore worth confirming your status before you start dealing with the return itself. The tax office may ask you for a certificate of tax residence from your country.

Tax rate and the obligation to file a return in the Czech Republic

Income from letting property that is not part of a business is taxed under Section 9 of the Income Taxes Act. The basic rate is 15%. The 23% rate applies only to the part of the total tax base that exceeds 36 times the average wage. For 2026, this threshold is CZK 1,762,812. No social security or health insurance contributions are payable on rental income.

A non-resident may claim the basic taxpayer credit, which amounts to CZK 30,840 a year in 2026. Other credits and deductions, for example for a spouse or children, are available only if the taxpayer is resident in another EU or EEA country and at least 90% of their worldwide income comes from the Czech Republic. This is rarely the case for owners who work abroad.

You file the return for 2026 in 2027. The deadlines are as follows:

on paper by 1 April 2027,
electronically by 3 May 2027,
through a tax adviser or lawyer by 1 July 2027, provided you submit the power of attorney to the tax office no later than together with the return.

The tax is due by the standard deadline, i.e. 1 April 2027, even if you file electronically later. The payment deadline is usually extended only if your adviser files the return after that date. If you are resident in a country outside the EU and EEA, you should also allow for tax security (zajištění daně). Under Section 38e of the Income Taxes Act, a tenant that is a company will usually withhold 10% of the rent and pay it to the tax office. This does not apply to the letting of a flat for residential use paid for by an individual. The security is not a final tax. You credit it in your return, and the tax office refunds any overpayment.

Flat-rate expenses, or actual expenses and depreciation

You can deduct from the rent either flat-rate expenses of 30% of income (up to CZK 600,000 a year) or expenses actually incurred and documented. The flat rate is administratively simpler, as you only need to keep records of income and receivables. It is particularly suitable for a flat without a mortgage and without major repairs.

Actual expenses pay off if they exceed 30% of the rent. They mainly include:

interest on a mortgage or other loan used to purchase or repair the flat,
real estate tax, insurance and contributions to the repair fund,
repairs and maintenance, property management fees and services related to the letting,
tax depreciation of the flat.

A flat falls into depreciation group 5, with a depreciation period of 30 years. It is depreciated from the acquisition cost excluding the land. With straight-line depreciation, the rate is 1.4% in the first year and 3.4% in subsequent years. If you choose the flat rate, you cannot claim depreciation, as the flat rate covers all expenses. If you let the flat on a short-term basis as an accommodation service, this may constitute a business under Section 7, with different rules and different flat rates. It is advisable to assess where this line lies with an adviser in advance.

Double taxation treaties

The Czech Republic has double taxation treaties with dozens of countries. For income from property, the country where the property is located usually has the first right to tax it. Your country of residence then prevents double taxation using one of two methods. Under the exemption method, it excludes the income from its tax base, often with progression, meaning the income raises the rate applied to your other income. Under the credit method, it taxes the income but deducts the tax paid in the Czech Republic, usually up to the amount of domestic tax attributable to that income.

Which method your country applies is determined by the specific treaty and domestic legislation. A few practical rules therefore apply. Keep your Czech tax return, the tax assessment and proof of payment, as you will usually need them abroad. If you live in a country with which the Czech Republic has no treaty, genuine double taxation may occur, and planning becomes even more important.

Real estate tax and other owner obligations

In addition to income tax, you also pay real estate tax (daň z nemovitých věcí), regardless of your residence. The return is filed by 31 January of the year following the year in which you acquired the flat. If the deadline falls on a weekend, it moves to the next working day. You file a further return only if circumstances change. Tax of up to CZK 5,000 is due by 31 May; a higher amount can be paid in two instalments by 31 May and 30 November. The amount of tax is influenced mainly by the local coefficient, which each municipality sets itself. The Ministry of Finance has kept the inflation coefficient at 1.0 for both 2026 and 2027.

As a landlord, you also have obligations beyond tax. These include a proper tenancy agreement, a handover report, the annual statement of service charges, inspections of gas and electrical installations and communication with the homeowners' association (společenství vlastníků). When you live abroad, it is often these everyday matters, rather than the tax itself, that prove more demanding in practice.

Representation before the tax office and delivery of documents

The tax office can deliver documents to an address abroad, but this tends to be slow and unreliable. In practice, it is better to set up a data box (datová schránka), the official Czech electronic mailbox, or to appoint a representative under a power of attorney. If you have a representative, documents are delivered only to them, within the scope of their authorisation. A representative who does not themselves have a residence or registered office in the EU, the EEA or Switzerland must appoint an agent for service of documents in the Czech Republic. Otherwise, their documents are held at the tax office.

If your representation is provided by a tax adviser or lawyer, you also gain a longer deadline for filing the return. Even more importantly, you will not miss a request from the tax office, which must be answered within a short time limit. Late filing or failure to file a return can result in penalties and late-payment interest.

How to handle tax and administration remotely

The entire annual cycle can be managed without travelling to the Czech Republic, provided it is set up well. The following approach works well:

keep a separate bank account for the rental so that the rent is easy to document,
keep invoices, contracts and statements on an ongoing basis, even if you currently claim the flat rate,
compare the flat rate with your actual expenses, including depreciation, every year,
grant a power of attorney to a tax adviser and submit it to the tax office no later than together with the return,
entrust the running of the flat to a property manager who collects the rent, deals with defects and prepares the documentation for your return.

Frequently asked questions

Do I have to file a return even if nothing is left from the rent after deducting expenses? The obligation depends on the amount of taxable income, not on the resulting tax base. If your income from Czech sources exceeds CZK 50,000 for the year, file a return even if the tax comes out at zero.

As a non-resident, can I deduct mortgage interest on the let flat? Yes. If you claim actual expenses, interest on a loan used to purchase the let flat counts as a tax-deductible expense. With flat-rate expenses, however, it cannot be claimed separately, as the flat rate covers all expenses.

Will I pay tax both in the Czech Republic and in the country where I live? As the country where the property is located, the Czech Republic has the first right to tax the rent. If there is a double taxation treaty with your country, your country of residence will either exempt the income or give you credit for the Czech tax. It is advisable to confirm the exact impact with a tax adviser in both countries.

This article explains the general rules in force as of October 2026 and does not replace individual advice. Always check your specific situation, particularly the determination of residence, the choice of expenses and the application of a double taxation treaty, with a tax adviser or lawyer.

If you let a flat in the Czech Republic from abroad, DALILE LIVING can arrange property management for you, including the documentation for your tax return, and put you in touch with trusted tax and legal professionals.