This May, many people were surprised by a fivefold increase in property tax. This increase is the result of the government's package to consolidate public finances and increase local coefficients in some municipalities. If the tax exceeds five thousand crowns, it can be divided into two installments.

The Financial Administration has recorded an increased number of inquiries regarding the increase in tax liability. People often ask whether there has been an error in the tax assessment. Spokesperson Tomáš Weiss confirmed that most inquiries come from cities where local coefficients have increased.

Municipalities had the option of deciding whether to leave the base rate increased by 1.8 times or to increase it by a local coefficient, which can range from 1.1 to 5. Some municipalities could have reduced the tax by a coefficient lower than 1, but most did not take advantage of this option.

In Zlín, the tax increased fivefold. The city announced this step last year, arguing that it had not increased the tax for fifteen years. Mayor Jiří Korec said that the city needs to optimize its revenues to provide services for the entire region.

Owners of apartments and houses in Zlín now pay higher amounts. For example, the owner of a three-bedroom apartment will pay about CZK 2,000, while the rate for a family house has risen to CZK 4,500. The city expects to receive CZK 140 million in tax revenue this year. In Sázava, the local coefficient has not changed, so residents only pay the state increase.

Mayor Vladimír Dvořák said that the city does not want to burden residents unnecessarily, even though it needs money for investments and waste management.

The tax must be paid by May 31, 2024. If it exceeds five thousand crowns, it can be divided into two installments. The first must be paid by the end of May and the second by the end of November. Payment can be made in various ways, including bank transfer or cash.

For comparison: in 2013, property tax in the Czech Republic ranged from 0.08 to 0.4 euros per square meter, which is lower than in many European countries. In Belgium, for example, the tax is calculated based on the estimated rental price and can range from 1.25 to 2.5%. In France, the tax can be 4.5 to 29.26% of 50% of the estimated rental price. Denmark has a rate of between 1 and 3% of the estimated value of the property. Finland has a rate of 0.32 to 0.75% of the estimated value of the property. In contrast, Bulgaria has one of the lowest rates in Europe, with a tax of only 0.001 to 0.045% of the estimated value of the property.