Foreigners Buying Property in the U.S.

The agreement of a transitional phase for the acquisition of real estate functioning as a secondary residence in the Czech Republic was once seen as a major success of Czech diplomacy in negotiating the terms of the Czech Republic’s entrance to the European Union. the pearl-qatar

From the rhetoric, one might conclude that nothing would change during the transition period, and that the only way for foreigners to acquire real estate in the Czech Republic for the next seven years would be to establish a legal entity, typically a limited liability company, and purchase the immovable through that company.

But nothing is as it appears. True, there is a seven-year transitional period for the purchase of real estate that can be used as a secondary dwelling (family houses, apartments, recreation cottages, building plots of land etc.). Nonetheless, this restriction only applies to foreigners from the EU, Iceland, Norway, and Liechtenstein who do not have a residence permit in the Czech Republic.

Any necessity for permission or other official approval elicits skepticism and concerns about lengthy and inconvenient administrative processes. However, in this context, the term “permission” is at best deceptive. Permission to reside for citizens of European Community member states, as well as citizens of Iceland, Norway, and Liechtenstein, is a very formal and illusory barrier that is primarily limited to registration duties. Citizens of the aforementioned countries have legal right to receive this authorization in a short period of time without having to demonstrate any special cause for their desire to “reside” in the Czech Republic. It is entirely up to them whether they claim that the goal of their visit to the Czech Republic is to ramble through the Czech forests, hugging the trees along the route as some Czech ex-politicians do, or for any other reason.

The list of documents needed to grant permission to dwell to a citizen of a European Community member state is fairly small, and the documents are readily available. It all boils down to two pictures, a passport or ID card, a proof of health insurance from the EU or another EEA nation, and an affidavit stating that you have adequate means to avoid being a burden on the Czech Republic’s social security system. Only in extraordinary circumstances is a health check required. The list can be considerably shorter in certain cases. Furthermore, there are no administrative costs.

To summarize the foregoing, a citizen of a member state of the European Economic Area must meet much fewer standards in order to receive authorization to remain in the Czech Republic than in the case of any other ID-card, license, or other certificate.

While the transitional periods for the Czech Republic’s accession to the EU and the European Economic Area were widely discussed in the media and in Parliament, the preferential treatment of purchases of real estate used as a secondary residence by citizens of the United States of America was implemented smoothly and quietly through a Supplementary Protocol to the Czechoslovak Treaty. In short, this Supplementary Protocol states that people of the United States should have the same rights to purchase real estate in the Czech Republic as inhabitants of EU nations, Norway, Iceland, and Liechtenstein.

This effectively means that U.S. residents having a visa permitting them to stay in the Czech Republic for more than 90 days are free to purchase real estate as a secondary residence. Obtaining a visa for stay in the Czech Republic is not as simple and formal as obtaining a certificate of permission to reside for a citizen of a member state of the European Communities, but it is still the most straightforward way to acquire real estate in the Czech Republic, much easier, faster, cheaper, and less complicated than using a limited liability company incorporated in the Czech Republic as a vehicle.

As previously said, purchasing real estate as a secondary property is a rather simple process. And all signs are that it will get more simpler in the near future. The transitional periods will most likely be shortened, and foreigners’ ability to own real estate will be completely deregulated. That, however, is a voice from the (near) future.Foreigners Buying Property in the U.S.

The agreement of a transitional phase for the acquisition of real estate functioning as a secondary residence in the Czech Republic was once seen as a major success of Czech diplomacy in negotiating the terms of the Czech Republic’s entrance to the European Union.

From the rhetoric, one might conclude that nothing would change during the transition period, and that the only way for foreigners to acquire real estate in the Czech Republic for the next seven years would be to establish a legal entity, typically a limited liability company, and purchase the immovable through that company.

But nothing is as it appears. True, there is a seven-year transitional period for the purchase of real estate that can be used as a secondary dwelling (family houses, apartments, recreation cottages, building plots of land etc.). Nonetheless, this restriction only applies to foreigners from the EU, Iceland, Norway, and Liechtenstein who do not have a residence permit in the Czech Republic.

Any necessity for permission or other official approval elicits skepticism and concerns about lengthy and inconvenient administrative processes. However, in this context, the term “permission” is at best deceptive. Permission to reside for citizens of European Community member states, as well as citizens of Iceland, Norway, and Liechtenstein, is a very formal and illusory barrier that is primarily limited to registration duties. Citizens of the aforementioned countries have legal right to receive this authorization in a short period of time without having to demonstrate any special cause for their desire to “reside” in the Czech Republic. It is entirely up to them whether they claim that the goal of their visit to the Czech Republic is to ramble through the Czech forests, hugging the trees along the route as some Czech ex-politicians do, or for any other reason.

The list of documents needed to grant permission to dwell to a citizen of a European Community member state is fairly small, and the documents are readily available. It all boils down to two pictures, a passport or ID card, a proof of health insurance from the EU or another EEA nation, and an affidavit stating that you have adequate means to avoid being a burden on the Czech Republic’s social security system. Only in extraordinary circumstances is a health check required. The list can be considerably shorter in certain cases. Furthermore, there are no administrative costs.

To summarize the foregoing, a citizen of a member state of the European Economic Area must meet much fewer standards in order to receive authorization to remain in the Czech Republic than in the case of any other ID-card, license, or other certificate.

While the transitional periods for the Czech Republic’s accession to the EU and the European Economic Area were widely discussed in the media and in Parliament, the preferential treatment of purchases of real estate used as a secondary residence by citizens of the United States of America was implemented smoothly and quietly through a Supplementary Protocol to the Czechoslovak Treaty. In short, this Supplementary Protocol states that people of the United States should have the same rights to purchase real estate in the Czech Republic as inhabitants of EU nations, Norway, Iceland, and Liechtenstein.

This effectively means that U.S. residents having a visa permitting them to stay in the Czech Republic for more than 90 days are free to purchase real estate as a secondary residence. Obtaining a visa for stay in the Czech Republic is not as simple and formal as obtaining a certificate of permission to reside for a citizen of a member state of the European Communities, but it is still the most straightforward way to acquire real estate in the Czech Republic, much easier, faster, cheaper, and less complicated than using a limited liability company incorporated in the Czech Republic as a vehicle.

As previously said, purchasing real estate as a secondary property is a rather simple process. And all signs are that it will get more simpler in the near future. The transitional periods will most likely be shortened, and foreigners’ ability to own real estate will be completely deregulated. That, however, is a voice from the (near) future.