Real Estate Tax in Prague

This bachelor thesis deals with the issue of real estate tax with a specific focus on the territory of the capital city of Prague. The aim of the thesis is to analyze the current legal regulation of this tax and to evaluate its fiscal significance for the budget of the Prague 10 municipal district. The theoretical part defines the legislative framework and the system of multipliers specific to Prague. The practical part analyzes the tax burden using model examples and data from the period 2019–2025. The analysis confirmed that the legislative changes in 2024 led to a 274% increase in the tax assessment in Prague 10, with the most significant spike experienced by owners of garages and industrial buildings. The results show that the high dynamics of the burden increase in 2024 triggered a subsequent correction by the local government, which decided to reduce the local multiplier to a value of 1.5 for the year 2025. The thesis identifies a mismatch between the tax liability and the market value of real estate, which, in the conditions of Prague 10, reinforces the regressive nature of the tax for the older housing stock. In conclusion, the thesis states that the real estate tax has become a key, yet socially sensitive fiscal tool for the municipal district.