Selling or keeping inherited property in the Czech Republic from abroad

Short answer

After the Czech probate decision becomes final, the property is recorded in the Land Register (katastr nemovitostí) in your name. You can then keep it or sell it without travelling: a Czech lawyer with your power of attorney signs the sale. The purchase price is paid into a lawyer's, notary's or bank escrow account, which releases it only after the buyer is recorded as owner. Ownership passes on registration, with effect from the day the application was filed (Civil Code, Section 1105). A gain from the sale may be taxable in the Czech Republic and must be reported in the US, so check both with a tax adviser.

Quick answers

Can I sell inherited Czech property without travelling?

Yes. A Czech lawyer with your power of attorney can sign the contract for you. The lawyer will tell you whether the power of attorney must be notarised and apostilled.

How do I make sure I get paid?

Use an escrow account held by a lawyer, a notary or a bank. It releases the price only after the buyer is recorded as owner in the Land Register.

Do I pay tax on selling inherited property in the Czech Republic?

It depends on how long the property was owned and other conditions. A gain may be exempt or taxable in the Czech Republic, and you may have to report it in the US. Check both with a tax adviser before the sale.

When this situation arises

• •Czech probate is finished and you want to sell the inherited flat or house
• •Several heirs inherited one property and cannot agree
• •A tenant lives in the inherited flat
• •You want to keep the property and rent it out from the US

What options do you have

Recommended step-by-step process

1. 1.

   Check the Land Register

   Confirm the property is recorded in your name after the final probate decision.

2. 2.

   Agree the price and the buyer

   A local agent or the lawyer can help; the lawyer checks the buyer's financing.

3. 3.

   Contract and escrow

   The lawyer drafts the purchase contract and an escrow agreement.

4. 4.

   Application to the Land Register

   After signature the application is filed; the price is released after registration.

5. 5.

   Tax

   Check whether the gain is taxable in the Czech Republic and how to report it in the US.

What documents to prepare

• •Final probate decision
• •Land Register extract (výpis z katastru)
• •Power of attorney for the Czech lawyer
• •Any existing lease
• •Your US tax adviser's contact

Common mistakes

• •Letting the buyer pay you directly before registration instead of through escrow
• •Signing a power of attorney that is broader than the sale
• •Forgetting the existing tenant's rights

Risks and important deadlines

Estimated costs

The lawyer's fee for the sale is agreed in advance; escrow and the Land Register application have their own fees. Ask for a written estimate.

When it's worth contacting a lawyer

Before you agree a sale or sign anything: the lawyer protects the payment through escrow and acts for you without your travelling.

Frequently asked questions