Buildings and property types

Apartment building (činžovní dům)

In Czech: Činžovní dům

An apartment building (činžovní dům) is a multi-storey urban building with several flats, originally built to be let. Today it may belong to one owner who rents out the flats, or be divided into units with different owners.

Also called: block of flats, tenement building, rental building, činžovní dům, činžák

What it means

An apartment building (činžovní dům) is a multi-storey house with several flats, typically part of a city street frontage. The name comes from činže, an old word for rent: the owner built the house to let the flats. Colloquially it is called činžák, and Czech listings use the term mainly for older masonry buildings from around 1900 and the interwar period.

Today the term covers two different things: a whole building owned by one person or company that rents out the flats, and individual flats in a building that has been divided into units.

How it works in the Czech Republic

When a whole činžovní dům is sold, the building and the land are transferred. Ask for a list of tenants, copies of all lease agreements and a payment history, and go through with a lawyer what happens to the existing leases after the change of owner. The Energy Management Act requires the owner selling a building to show the energy performance certificate (PENB) to the buyer before the contract is concluded.

If the building is divided into units and has at least five units, at least four of which belong to four different owners, the owners must set up an owners' association (společenství vlastníků jednotek, SVJ) to manage the common parts.

If a private individual uses a mortgage to buy property intended for renting out, the Czech National Bank (ČNB) has since 1 April 2026 recommended that banks apply LTV of at most 70 % and DTI of at most 7 to such investment mortgages; as of October 2026 this is a recommendation, not a binding limit. Rental income is taxed under Section 9 of the Income Tax Act. According to the Financial Administration (tax period 2025), you can claim flat-rate expenses of 30 %, up to CZK 600,000, or actual expenses.

Practical example

For example, an investor is considering an apartment building with six flats and a shop on the ground floor. Before making an offer, he asks for the leases and payment history, the PENB, inspection reports and information on the roof and pipework. He discusses with the bank whether the loan will be treated as an investment mortgage, and with a tax adviser whether flat-rate or actual expenses suit him better.

What to watch out for

  • Get copies of all leases and check who actually lives in the building.
  • Go through with a lawyer what happens to existing leases after the sale.
  • Have the roof, structure, pipework and cellars inspected.
  • For a flat in such a building, ask the SVJ about the repair fund and planned works.
  • Check the title deed for liens, easements and any notes.

Frequently asked questions

What is the difference between a činžovní dům and a panel block?

A činžovní dům is usually an older masonry city building put up to let flats. A panel block (panelový dům) is built from prefabricated concrete panels, typically on a housing estate.

Does an apartment building need an SVJ?

Only if it is divided into units and has at least five units, at least four of which belong to four different owners. A building with one owner that is not divided into units has none.

How is rental income taxed?

Under Section 9 of the Income Tax Act. According to the Financial Administration (tax period 2025), you can claim flat-rate expenses of 30 %, up to CZK 600,000, or actual expenses, and the choice cannot be changed retroactively.

On Lovec-Realit.cz

  • Residential unit (bytová jednotka)A residential unit (bytová jednotka) is a flat as a spatially separate part of a building together with a share in the building's common parts. It is the usual form of owning a flat in Czechia and is recorded in the land register.
  • Owners' association (SVJ)An owners' association (SVJ, společenství vlastníků jednotek) is a legal entity that flat owners set up to manage the building and its land. It must be formed in a building with at least five units, at least four of them owned by four different owners.
  • Lease agreement (nájemní smlouva)A lease agreement (nájemní smlouva) is the contract under which a landlord lets a flat or house to a tenant for temporary use in exchange for rent. Residential leases in Czechia are governed by the Civil Code.
  • Rental yield (výnos z pronájmu)Rental yield (výnos z pronájmu) shows what percentage of a property's price the rent returns each year. Gross yield uses the rent only; net yield first subtracts the owner's costs.
  • Buy-to-let flat (investiční byt)A buy-to-let flat (investiční byt) is a flat bought mainly to rent out or to preserve the value of money, not to live in. Its return depends on the price, rent, running costs, taxes and financing.
  • Energy performance certificate (PENB)PENB (průkaz energetické náročnosti budovy) is the Czech energy performance certificate. It rates how much energy a building or flat needs and places it in a class from A (exceptionally efficient) to G (exceptionally inefficient).

Sources

Laws and official pages this text is based on (in Czech).

This text is for information only and has not yet been checked by a legal or financial expert. It is not legal, tax or financial advice. Verify important details in the listed sources or with a professional.

Updated 25 October 2026

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