Source of funds checks when buying property in Czechia (2026)

When you buy a property, the bank, the lawyer, the notary and the estate agent will all ask where your money comes from. Here are the documents that work for different sources of funds, and how to prepare them in advance so the purchase isn't delayed.

When buying a property, the buyer must prove their identity and, for larger sums, also where the money for the purchase price comes from. This is required by Act No. 253/2008 Coll., known as the AML Act. In practice, you provide bank statements, contracts and decisions that show the full path of the money, from its origin to the escrow account. Prepare these documents before you sign the reservation agreement, because without them the bank, the lawyer and the estate agent are not allowed to complete the transaction.

Why everyone asks where your money comes from

The AML Act defines a group of 'obliged entities' (povinné osoby) that must know their clients and check transactions. These include banks, and lawyers and notaries when they take part in a property transfer or hold funds in escrow. Estate agents are also obliged entities. An obliged entity must identify the client no later than the moment it becomes clear that the transaction will exceed EUR 1,000, which applies to almost every property purchase. Client due diligence under Section 9 of the Act involves establishing the purpose of the transaction, verifying the beneficial owner and examining the sources of the funds used in it.

This is not about curiosity or mistrust. Under Section 15, if a client refuses to be identified or does not cooperate with due diligence, the obliged entity must decline the transaction. Suspicious transactions are reported to the Financial Analytical Office (Finanční analytický úřad). Information and copies of documents are kept for ten years from the date of the transaction, so the checks cannot be avoided or relaxed after the event.

Who identifies the buyer: the bank, the lawyer, the notary and the estate agent

Each party in the transaction must meet the same legal obligation in its own right. None of them can rely on someone else having already done the checks. This is why you may be asked the same questions three or even four times.

The estate agent identifies both the buyer and the seller from their identity documents, checks them against sanctions lists and asks about the source of funds and whether you are a politically exposed person.
The bank checks the origin of your own funds when you take out a mortgage. It also monitors every large incoming payment to your account, especially payments from abroad.
The lawyer or notary who drafts the purchase agreement and holds the escrow must know whose money is being paid into escrow and from which account.
The bank that holds the escrow account may carry out its own checks again.

The first identification of an individual usually takes place in person. If you cannot attend in person, the law allows identification through a notary or a Czech POINT contact office, or verification by means of electronic identification. A foreign buyer can therefore be identified without travelling to Prague. However, they should allow for signature authentication and, where required, an apostille or superlegalisation of documents.

Which documents are enough for savings, the sale of a property, an inheritance or a gift

The general rule is simple: one document must show how the money was acquired, and a bank statement must show that it is the same money. How much documentation you need depends on the amount and on how risky the transaction appears to the obliged entity.

Savings: bank statements covering a longer period that show gradual saving, plus proof of income, tax returns or an employment contract. A large one-off deposit without an explanation will lead to further questions.
Sale of another property: the purchase agreement, an extract from the Land Register (katastr nemovitostí) and a statement from the escrow account or the account into which the purchase price was paid.
Inheritance: the court's decision on the inheritance with the date it became final and binding (právní moc), and a statement from the account into which the inheritance was paid.
Gift: a deed of gift, proof of the transfer of money from the donor and, for large amounts, information about where the donor's money came from.

With gifts, remember the tax side as well. Under Section 38v of the Income Tax Act, an individual who receives exempt income of more than CZK 5 million, such as a gift from a close relative, must notify the tax office. This applies to Czech tax residents. The deadline is the same as for the tax return. Failure to notify can result in a fine: if you notify voluntarily after the deadline, the fine is a fraction of a percent, but after a request from the tax office it is 10%, and if you still fail to comply, up to 15% of the unreported amount. A copy of the filed notification is also a useful document for the bank and the lawyer.

Money from abroad: transfers, currency risk and payment delays

A payment from abroad, especially from outside the EU, passes through several banks. Any of them may hold it and request supporting documents. The receiving Czech bank often asks about the purpose and origin of the payment before crediting it. For a purchase price of tens of millions of crowns, this can take several days. Leave enough time between making the transfer and the date by which the money must be in escrow.

The second risk is the exchange rate. The purchase price is usually set in Czech crowns, so any movement in the rate between signing the reservation and actually making the payment can change how much you pay in your own currency. You can discuss hedging the exchange rate or converting the funds in advance with your bank. The money should leave an account in your own name. A payment from a third party, such as a family member or a company, without a clear agreement is one of the most common reasons an escrow account refuses to accept a payment.

Cash is not suitable for a large transaction. In Czechia, Act No. 254/2004 Coll. sets a limit on cash payments of CZK 270,000 per day between the same parties. From 10 July 2027, the EU Anti-Money Laundering Regulation (AMLR) will introduce an EU-wide cap of EUR 10,000 for traders.

Cryptocurrencies and company shares as a source of the purchase price

Cryptocurrencies are not prohibited as a source of funds, but they require the most thorough documentation. Prepare your trading history from the exchange, evidence of the original purchases, wallet addresses and confirmation of the transfer to your bank account. Ideally, convert the funds through a regulated crypto-asset service provider. Banks are cautious about transfers from unregulated platforms.

For tax purposes, since 15 February 2025 income from the sale of crypto-assets has been exempt if the individual held them for more than three years, or if the total of such income in a given year does not exceed CZK 100,000. The exemption is reduced above an overall limit of CZK 40 million per year, which is shared with securities and business shares. A tax return or a calculation of the holding-period test is therefore also persuasive evidence for the bank.

For money coming from a company, document how you obtained it. For a profit distribution, this means the general meeting resolution, the financial statements and proof that withholding tax was paid. For the sale of a share in a company, it means the share transfer agreement and an extract from the Commercial Register (obchodní rejstřík). A loan from your own company requires a loan agreement with verifiable terms.

Politically exposed persons and beneficial owners of companies

Under Section 4(5) of the AML Act, a politically exposed person is someone holding a prominent public function, such as a member of parliament, a member of the government or a judge of the Supreme Court, as well as persons close to them. Such a person may buy property, but the obliged entity must carry out enhanced due diligence. This includes documenting the source of their entire wealth, not just the specific payment, and approval from the obliged entity’s senior management.

If a company is buying the property, its beneficial owner is verified. This is the individual who owns or controls the company. The entry in the Register of Beneficial Owners (evidence skutečných majitelů) must be up to date and reflect reality. For multi-layered foreign structures, prepare an organisational chart and documents for every link in the chain. From July 2027, the EU AMLR will harmonise and clarify the rules for identifying beneficial owners.

How to prepare your documentation so that neither the escrow nor the signing is delayed

Before making a reservation, list the sources from which you will fund the purchase price, and for each one prepare evidence of how the money was acquired and a bank statement.
Consolidate the funds in a single account in your name and avoid moving them unnecessarily through several banks.
Have foreign-language documents translated, and check whether public documents issued abroad require an apostille.
Initiate any international transfer well in advance and inform both your own bank and your lawyer.
A single, complete file of documents that you can hand to every party involved in the transaction will save weeks of queries.

Transactions most often stall because of a payment from someone else’s account, a missing document for a large one-off deposit, an unclear chain of transfers through several countries, an out-of-date beneficial ownership entry, cryptocurrencies with no purchase history, or the late discovery that the buyer is a politically exposed person. Delays usually arise not because the money itself is problematic, but because the documents are only gathered once the deadlines under the reservation agreement are already running.

Frequently asked questions

Do I have to prove the source of funds even if I am buying without a mortgage? Yes. The obligation applies not only to banks but also to the lawyer or notary holding the escrow and to the estate agency. Your own funds are checked just as thoroughly as a loan, and often in even greater detail.

Can my parents pay for the purchase directly into escrow? It is possible, but it is safer for them to first give you the money as a gift, transferred to your own account on the basis of a written deed of gift (darovací smlouva), and for you to then send it to escrow yourself. Payment from a third party without supporting documents is a common reason for a transaction to be refused.

What if I have no proof of the source of funds because the money comes from long-standing savings? Provide whatever evidence you can: long-term bank statements, tax returns, documents relating to the sale of assets. The obliged entity (povinná osoba) assesses the overall picture. If it is not satisfied, however, it must decline the transaction. For this reason, consult a lawyer or tax adviser on how to proceed before you start preparing the transaction.

This article explains the general rules and does not replace legal or tax advice. Please check your specific situation with a lawyer and a tax adviser, particularly where funds come from abroad or involve corporate structures or cryptocurrencies.

DALILE LIVING can help you put together an overview of the required documents as early as the property search stage, and coordinate the purchase timeline with both your bank and the lawyer's escrow (advokátní úschova). We will be happy to agree on the next steps with you at our first meeting.