Why do I need a Will

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S
EDDONS SOLICITORS
LONDON PRAGUE
PROPERTY ACQUISITION BY FOREIGNERS A BASIC
GUIDE 7th November, 2003 Jan Grozdanovic
LLB solicitor, advokát partner
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S
E D D O N S
Introduction

• REASONS FOR ACQUISITION
• - personal
• - investment

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PRE EU ACCESSION
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E D D O N S

• GENERAL
• FOREIGN EXCHANGE ACT

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POST EU ACCESSION
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E D D O N S

• GENERAL
• TRANSITIONAL PERIODS
• - 5 years residential
• - 7 years agricultural/forestry

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TYPICAL PROPERTY TRANSACTION
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E D D O N S

• RESERVATION CONTRACT
• PURCHASE CONTRACT
• CONTRACT FOR FUTURE CONTRACT
• MORTGAGE DOCUMENTATION

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HOW TO DO IT?
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E D D O N S

• LIMITED LIABILITY COMPANY
• - setting up a new company
• - registered capital
• - director issues
• - acquisition of an existing company
• CO-OPERATIVE
• - acquiring a share

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PITFALLS
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E D D O N S

• OWNERSHIP
• - LAND CADASTER
• - SAFEGUARDING FUNDS
• - purchase price
• - notarial/advocate custody,
  escrow account
• - property transfer tax
• - HOUSES/FLATS BEFORE CONSTRUCTION

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RELATIONSHIPS
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E D D O N S

• UNMARRIED COUPLE
• PROPERTY IN MARRIAGE BREAKDOWN
• - divorce within 5 years / no children
• - divorce after 5 years / children

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TAXATION
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E D D O N S

• VALUE ADDED TAX - exemptions
• INCOME TAX - exemptions
• PROPERTY TRANSFER TAX
• REAL ESTATE TAX

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Conclusion
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E D D O N S

• CZECH PROPERTY MARKET
• money goes further
• IMPORTANCE OF LEGAL ADVICE
• prevention is better than cure!

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S
EDDONS SOLICITORS
LONDON PRAGUE
Seddons v.o.s. Rybná 1 110 00 Praha 1 TEL 420
222 316 522 FAX [phone] jang_at_seddons.cz
www.seddons.cz