Renting a home

Inflation clause (inflační doložka)

In Czech: Inflační doložka

An inflation clause (inflační doložka) is a lease term under which the rent rises every year, usually by the rate of inflation. Czech law does not use this name; it speaks of an agreed annual rent increase.

Also called: rent indexation clause, rent escalation clause, valorizační doložka

What it means

In practice, an inflation clause (inflační doložka) is a term saying the rent is adjusted once a year in line with prices. The Civil Code does not use this expression: § 2248 simply says the parties may agree on an annual rent increase. How the increase is calculated depends entirely on the wording of your lease.

How it works in the Czech Republic

The clause often refers to the inflation rate published by the Czech Statistical Office (Český statistický úřad, ČSÚ), for example the increase in the average annual consumer price index. A good clause says which indicator is used, from which date the higher rent applies and how the landlord will notify the tenant. Some clauses set a cap, others use a fixed percentage instead of inflation.

If the lease neither provides for nor excludes increases, § 2249 applies: the landlord may propose in writing a rise up to the comparable rent usual in the area, provided it does not exceed 20 % together with increases over the last three years. A proposal made before 12 months have passed without an increase is disregarded. If the tenant does not agree, the landlord may ask a court within three months to set the rent. This is the position as of October 2026.

The clause applies only as written. If, for example, it does not say from when the increase applies, agree on it in writing with the landlord to avoid a dispute later.

Practical example

For example, a lease says the rent rises every year from 1 April by the average annual inflation rate for the previous year published by ČSÚ. With rent of CZK 20,000 and inflation of, say, 3 %, the new rent would be CZK 20,600 a month. The inflation figure here is only illustrative; always check the real one on the ČSÚ website.

What to watch out for

  • Check which indicator the clause refers to and who publishes it.
  • Look for the date from which the increase applies and how you will be told.
  • Consider negotiating a cap on the yearly increase.
  • Do not sign a clause that lets the landlord raise rent without a clear formula.
  • If there is no clause, the landlord can only propose an increase in writing under § 2249.

Frequently asked questions

Is an inflation clause legal in a Czech lease?

Yes. § 2248 of the Civil Code expressly allows the parties to agree on an annual rent increase, although the law does not use the term inflační doložka.

Do I have to accept an increase under the clause?

If the increase matches what you signed, it follows from your agreement with the landlord. Always check the calculation and the indicator used.

What if the lease says nothing about rent increases?

Then the landlord may propose in writing an increase up to the comparable local rent under § 2249, by no more than 20 % over three years including earlier rises. If you disagree, the landlord can ask a court within three months to set the rent.

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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