Will there be any changes in the real estate sector with the Czech Republic’s entry to the EU?
The European Union represents an area without internal borders. The free movement of capital is guaranteed within this area. The acquisition of real estate is considered to be one form of the movement of capital. Once the Czech Republic enters the EU, it will be easier for foreigners to acquire real estate within the Czech Republic and Czechs will be able to acquire real estate in EU countries more easily.

So foreigners are free to buy real estate in the Czech Republic?
Yes, that is true, although there are two exceptions. The Czech Republic has negotiated a transition period for two types of real estate. These are agricultural real estate (farmland and woodland) and secondary residences (second apartments, weekend houses and cottages). However, these limitations do not effect all foreigners and they are also only temporary. In the first case they may remain in force a maximum of 7 years, and in the second, no longer than 5 years, the Czech Republic enters the EU.

Do other member countries have such limitations?
Prior to the accession of the Czech Republic into the EU, several countries went through transition periods. However, the periods that were negotiated for those countries have already run out. Among the older EU member countries, only Denmark still has an exception. But several of the new EU member countries have transition periods, e.g. Hungary and Poland.

Answers to the questions were provided by attorney Michal Žižlavský, JUDr, member of the panel of experts of the Czech Bar Association for European Law.