Purchasing procedure of a historic property is similar to a procedure of buying an ordinary property. Nevertheless, every country has its own specifics. For example, some countries have a determined limit for properties sold to private individuals. For such case, solution shall be the registration of a legal entity within the territory of thecountry and conduct deals on behalf of the registered company. In some cases,the property for sale is a castle along with the land, which is leased to a customer with a right for inheriting it or right for extending the lease up to 99 years. Thus, besides a standard purchase/sale agreement, it will be required to enter into a lease contract.
In some other cases, it’s about purchasing a castle owned by the state, which is subject to some obligations, such as reconstruction, carrying out of open days at the castle on certain days for tourists/public etc.
All these details will be discussed during preliminary inspecting of castles. Further, we identify the procedures of property purchase for you. Once obtained a valuable site, historic property owners like no other know the tax burden, which is placed on them.
Please note that purchasing a real estate will require payment of fees to real estate agency (paid in all countries), a tax on real estate purchase (is paid by the customer in all countries), which can reach 15% of property value and a fee for changes on changing the owner’s name in the Cadastral Registry.
Next, once you become the owner, you are required to pay an annual property tax In some countries it is symbolic – you are unlikely to pay more than 300 Euros per year for a property in Czech Republic. But, in some countries, such payment is quite considerable.
Another point to emphasize is related to the so-called Inheritance Tax. Having inherited a historic property in Czech republic exempts you from the inheritance tax, whereas in France this particular tax can very well bring one to ought. This is why we recommend our clients to buy a property to a legal entity, rather than a private individual.