Possibilities for financing real estate purchases in the Czech Republic

Taking out a mortgage for Czech Citizens

Czech Citizens are eligible for bank financing in the form of a mortgage to purchase a real estate asset in the Czech Republic of up to 90% of the value of the property.

The basic conditions are a regular salary in Israel or Europe for salaried employees , tax reports as proof of income for independents, and an insurance policy for the apartment. The loan is provided for up to 30 years or until age 70 (the earlier of the two).

Business financing for the purchase of real estate in the Czech Republic on the basis of establishing a company

Entrepreneurs and investors who desire to purchase real estate in the Czech Republic can secure funding of up to 70% of the property value depending on the projected future income from it and up to 80% of the income.

Business funding for entrepreneurial projects on the basis of establishing new companies

Entrepreneurs and investors who are interested in establishing real estate projects in the Czech Republic can secure up to 70% funding for a short term of up to five years. The loan is provided in the form as a balloon loan and the payment of the interest is made throughout the project. At its conclusion the fund is paid back to the bank.

The basic conditions are the establishment of a new company. The transaction is supposed to be profitable and subject to the confirmation of the bank with a minimum of 20% profit per project. The transaction, both the acquisition and the associated costs must be assessed.

Funding in Israel for the purpose of purchasing real estate in the Czech Republic

The banks in Israel provide loans for the purpose of acquiring real estate in the Czech Republic in the form of an every – purpose loan. These loans are conditioned on the mortgage of another property in Israel.

Sometimes, funding can be raised for purchasing real estate in Prague through other means, other banks under different conditions and various funds.

Securing funding in the Czech Republic for the purpose of restoration and renovation of real estate assets

It is also possible to secure funding from the banks for renovation purposes. For the most part such funding is only provided for the renovation of large real estate assets, not for small apartments.