top of page

How to buy property abroad

The Czech real estate market is probably at its maximum. The property prices have risen in an extraordinary manner during past two years and there is no sign of a change to be seen. It is quite possible that we will see a price correction in the near future, but it cannot be fully relied on. At the same time, mortgage interest rates are several times higher in the Czech Republic than abroad.

A logical investment opportunity that shows up is to buy a relatively cheaper property abroad and, for this purpose, to take a mortgage provided by a foreign bank - with

a significantly more favorable lower interest rate than it would be in Czechia.

Countries within the EU do not restrict the purchase of real estate by citizens of another member state. However, it is necessary to take into account that the sale and subsequent ownership of investment property is governed by the rules of the country

in question. It is therefore advisable to first select the country where you would most like to own the property and then find enough information (amount of tax burden, amount of fees for the transfer of the property, notary fees etc. - so that

the cost analysis is complete).

If you decide to buy a property abroad, you can choose from the following options:

  1. you have a sufficient equity to pay the entire acquisition price without external financing,

  2. you take a loan in the country where you are buying the property. The acquired property usually serves as the security.

  3. you take a loan in the Czech Republic whereas another immovable property located in Czechia serves as a security.


Hypoindex (7.10.2022)


bottom of page