18.11.2025
Real Estate Share Deals in the Czech Republic
Why they still make sense in 2025
Are you facing uncertainty regarding real estate investments in the Czech Republic after the 2025 tax reform? This article provides concrete and practical answers for businesses and investors regarding strategies of share deal acquisitions. Discover how cross-border legal solutions and the global network of lawyers at Anywhere.legal, made of verified legal experts, ensure legal certainty even in the new era of international law.
The New Reality of Real Estate Investments: What 2025 Brings
The year 2025 marks a significant milestone in the real estate transaction environment in the Czech Republic. Legislative changes focus on harmonizing tax treatment, forcing entities to reconsider primary motivators for choosing Share Deals.
Elimination of Tax Advantage and Shift to Efficiency
The traditional Share Deal, purchasing a company (SPV) owning real estate, was historically motivated by tax efficiency, as it was not subject to real estate acquisition tax.
A fundamental shift occurs in 2025 when Czech legislation signals the intention to tax Share Deals similarly to Asset Deals. The removal of tax incentive shifts focus to operational efficiency, speed, and safer risk management, which represents a new mandate for investors.
Besides the share taxation reform, the Czech jurisdiction introduces other adjustments, including changes in depreciation categories (typically 30 to 50 years) and local real estate tax. Local governments gained broader powers to set local coefficients (0.5 to 5.0), which for foreign investors represents variability in taxation requiring detailed legal verification.
Strategic Appeal of Share Deals: Non-Tax Efficiency is Key
Despite the removal of the main tax advantage, Share Deals remain the preferred acquisition method for corporations, developers, and funds where speed, continuity, and risk management prevail.
Speed and Procedural Ease
Acquiring shares in a company (SPV) is administratively lighter and faster than an Asset Deal. Asset Deals require extensive documentation and registration of each asset, contract, and liability. In contrast, Share Deals keep all assets in the target company, minimizing the amount of transfer documentation and notarial acts. This procedural ease enables much faster completion of acquisitions, which is crucial in the competitive real estate market.
Maintaining Permits and Operational Continuity
The most significant non-tax advantage of Share Deals is the ability to retain operational continuity of the target company. In Asset Deals, licenses and official permits (e.g., building permits) are usually non-transferable and must be reacquired by the buyer. In a Share Deal, the target company retains all its assets, including critical licenses and long-term lease agreements. Investors thus view Share Deals as a mechanism to ensure operational continuity and minimize regulatory delays.
Risk Isolation through SPV
The use of Special Purpose Vehicles (SPVs) is key for international investors to isolate financial and operational risks from the parent company. This separation is crucial for private equity groups, as it allows structuring investments legally protected and minimizing liability spillover. Using SPVs ensures legal and financial certainty by keeping risks associated with Czech real estate confined within an isolated jurisdiction.
Micro-FAQ: Structuring Acquisitions through SPV
What is an SPV and why is it important in cross-border transactions?
An SPV is a separate legal entity established to isolate specific risks and facilitate structured financing. It ensures that risks related to Czech real estate do not jeopardize the core operations of the parent company. If you are looking for the optimal legal form, contact us via Anywhere.legal.What are typical costs for establishing an SPV in the Czech Republic? The costs of establishing a new Czech company (LLC or JSC) usually range between EUR 1,000 and EUR 1,500, including related legal counsel. Use our tool to determine the scope of your case to define your case and select the right lawyer.
Table Comparing Share Deal and Asset Deal (Strategic Advantages 2025 )
Critical Factor | Asset Deal | Share Deal (Strategic Advantage) |
Transfer of Licenses and Permits | Usually non-transferable, requiring new processing | Retained in target company, no need for new accreditation |
Procedural Speed | Lengthy process, need to specify all assets and liabilities | Faster acquisition, less documentation and notarial acts |
Risk Isolation | No isolation, direct asset acquisition | Use of SPV to legally isolate financial and operational risk |
Cross-Border Legal Risks That Cannot Be Ignored
After the 2025 tax reform, the main risk for Share Deals shifts from tax optimization to global and local compliance risk. Acquiring an SPV means taking over the entire jurisdictional compliance history, requiring deeper due diligence.
Increasing AML/CTF Compliance Burden
The Czech Anti-Money Laundering Act (Act No. 253/2008 Coll.) has been significantly strengthened by EU directive implementations. The scope of AML regulation has expanded substantially to include small and medium enterprises (SMEs) and real estate brokers. Failure in this area presents direct operational and financial risk. AML violations may lead to administrative fines up to CZK 5 million and blocking of bank accounts and suspension of operations of the target company for up to three months.
CSDDD and Risk of Catastrophic Fines
The EU Corporate Sustainability Due Diligence Directive (CSDDD) imposes on large corporations the duty to conduct due diligence throughout the value chain. Penalties for CSDDD breaches may reach at least 5% of the global net turnover in the last financial year. Such a fine represents an existential risk, placing compliance risk far above any tax risk associated with the transaction.
Risk of Land-Use Planning Disputes
Investing in a foreign jurisdiction always involves the risk of legal disputes. In the Czech Republic, disputes often arise related to land-use planning when changes in local plans prevent realization of a development project. Investors must ensure their legal mandate includes robust protection against local official and regulatory obstacles that may devalue the project.
Managing Complexity with Anywhere.legal: Predictability and Verified Quality
The success of Share Deals after 2025 lies in the ability to manage cross-border legal solutions with high speed, accuracy, and transparency. Anywhere.legal provides the infrastructure to ensure legal certainty and effective management of complex mandates.
How Scoping Works Scope (Scoping) with AI
Anywhere.legal uses artificial intelligence to transform the scoping process. The platform allows users to upload documents, which AI immediately reads, defines the scope of the case (AI Scoping), and generates document proposals. Precise scope definition is crucial for managing international due diligence because the platform immediately identifies and assigns the correct lawyer from the global network of lawyers.
Use our tool to determine the scope of your case to define your case and choose the right lawyer.
Transparent Financing with Price Cap
For chief financial officers (CFOs), cost predictability is key. Anywhere.legal addresses unclear costs by introducing transparent AI pricing and a price cap. The price cap represents the maximum fee for international legal representation defined within a clearly defined scope of the transaction. This concept eliminates "drip pricing" practices and gives clients clear oversight of maximum costs for the mandate.
Do you need international legal help with transparent price cap? Contact us via Anywhere.legal.
Quality Assurance: Verification Process
Anywhere.legal operates through a verified international network of lawyers covering over 90% of countries. To ensure quality and accuracy, the platform uses a unique verification process known as "lawyer-in-the-loop." Here, a qualified and experienced local lawyer (Verifier) reviews and verifies AI outputs, ensuring that information (e.g., specific AML due diligence requirements in Czech jurisdiction) is current and minimizes error risk.
Start your case directly on Anywhere.legal and gain access to verified legal experts.
Risk Table: Critical Risks of Share Deals 2025 and Anywhere.legal’s Role
Risks and Sanctions | How Anywhere.legal Helps (Risk Management) |
Non-compliance with foreign regulations (AML/CSDDD) with global fines (up to 5% turnover) | Definition of legal scope and verified assignment of lawyer |
Contract disputes across jurisdictions and local official barriers | Cross-border legal solutions with transparent price cap and local law knowledge |
Misunderstanding local requirements (e.g., real estate tax, depreciation) | Local expert verification of documents and "lawyer-in-the-loop" advice |
Loss of key licenses and permits due to poor transaction structure | Accurate AI scoping ensuring that transaction mandate accounts for non-tax procedural advantages. |
Contact us through Anywhere.legal for tailored legal support.
Conclusion and Action Plan
The analysis shows that Share Deals maintain strategic significance for international law and investors due to their non-tax advantages: speed, procedural ease, and preservation of operational permits (licenses and mandates).
The real risk and decisive success factor for the transaction now is increasing compliance complexity, especially in AML/CTF and CSDDD areas. The key to legal certainty is adopting modern tools that provide verified quality and transparency.
Anywhere.legal transforms management of cross-border legal solutions by offering AI-assisted scope definition, predictable price cap, and quality guarantee through a verification process with local experts. Use Anywhere.legal’s verified network to rapidly define your mandate and manage complex cross-border risks with confidence.
Frequently Asked Questions – FAQs on Real Estate Share Deals in the Czech Republic
How is the tax burden for Share Deals changing in 2025?
Tax structures previously effective due to absence of acquisition tax are losing their advantage. The goal is tax equalization of Share Deals with Asset Deals, requiring immediate review of existing and planned acquisition structures. If you need to assess tax impact, contact us via Anywhere.legal.
What is the main non-tax advantage offered by Share Deals after the tax reform?
The greatest advantage is procedural simplicity, transaction speed, and the ability of the target company to retain existing operating licenses, building permits, and key contractual relations. Use our tool to define the scope of your case for proper advice and selection of the right lawyer.
Do new AML/CTF rules apply to my company even if we are a small or medium enterprise?
Yes, the implementation of EU directives in the Czech Republic expanded the scope of AML Act No. 253/2008 Coll. to many sectors, including real estate transactions and SMEs. Banks actively monitor compliance and failure may lead to account blocking. Need international legal help with compliance? Contact us via Anywhere.legal.
What sanctions apply for failure of Due Diligence under CSDDD?
Companies subject to CSDDD face administrative fines of at least 5% of global net turnover, and civil liability for damages caused. If you encounter similar issues, contact us via Anywhere.legal.
How does Anywhere.legal ensure that legal advice is current and correct (verification process)?
The platform combines AI Scoping with a human verification process ("lawyer-in-the-loop"). A local legal expert (verified legal expert) revises and verifies AI outputs to ensure accuracy and local jurisdiction relevance. Contact us via Anywhere.legal for tailored legal support.
How long does it take to obtain a mandate and set a price cap for an international real estate transaction?
Thanks to AI Scoping and AI Pricing, initial data processing, scope definition, and cost proposal (with price cap) can be done within seconds to minutes after uploading documents.
