As the law stands if you are not a Czech national you will need to own the property through a company or by obtaining a Residency Permit, depending on your nationality. A single purpose company can be set up to do this or you can buy an “off-the-shelf company” . This will cost around CZK 30-40,000. 

You will usually need to have a deposit or “down-payment” the minimum is usually around 10% of the property price. There are some banks who offer a loan of 100%, but read on…

….be aware that the bank will lend up to a certain percentage (e.g. 90%) of the value of the property, as they see it, not necessarily what you are paying for it ! Don’t therefore always assume that if banks advertise 90% or even 100% mortgages that is actually 90% or 100% of your purchase price!

The bank will make a decision on your ability to repay the loan so you need to have an “income” from employment or other activity.

Having said that, it is possible (although not so easy) to obtain a loan if your intention is to Let the property and the potential rental income can be used in assessing your ability to repay the mortgage.

So how do you proceed? We advise that you speak to a mortgage broker to discuss your situation and requirements. They will then contact the lending sources to find who is interested and who is offering the best deal. But this can take time so the sooner you start the better.