By Nathan Brown of Czech Point 101

A substantial barrier to foreigners purchasing property in Czech Republic has been lifted. This is the previous requirement of the Czech Land Registry for foreigners either to purchase through a Czech company, called an SRO or after possessing a Czech residency permit.

The timing really couldn't be better as the Czech property market stares in the face of a rapidly declining GDP, reduced lending by Czech banks and serious financial difficulties in many of the 'investment' minded countries.

As of May 1st, the Land Registry will now be registering any buyer without requiring an SRO or Czech residency permit. This decision, although not passed in Czech parliament, recognizes the EU directive (Article 56 of the EU articles of establishment) which stipulates that all EU member countries must have similar laws on the purchase of property. In fact, this EU directive states that there should be no restrictions on the purchase of property.

Czech Republic had a five year exemption from this article but this time has now passed. A further 2 year exemption applies on the purchase of land zoned agricultural and forestry meaning foreigners can purchase these types of land only through establishing a Czech company (SRO) or holding the appropriate licenses as a physical person.