Splitting an apartment building into separate residential units can be a great way to increase the value of the property and improve its marketability - that is, of course, if you have the desire and time to go for it.
- Preliminary analysis and economic evaluation
- Check whether the apartment building in Prague is technically suitable for division.
- Evaluate the location - subdivision makes the most sense in attractive areas of the city with high demand for apartments.
- Calculate the return - in some cases it is more profitable to sell the house as a whole to the investor, in other cases in units.
- Legal framework - owner's declaration
The division of the house into units is governed by the Civil Code and the Land Registry Ordinance.
The basis is the owner's declaration, in which you specify:
- a list of the individual flats (including size and amenities),
- the common parts of the house,
- the shares in the common parts and the land.
The owner's declaration must be signed and the signature certified by a notary.
- Technical documentation for the Land Registry
- Prepared by an authorised architect or designer.
- It includes precise floor plans, measurements of the flats and marking of common areas.
- It serves as an annex to the owner's declaration when submitted to the cadastre.
- Administrative procedure
- Prepare the owner's declaration with annexes.
- Verify the signature with a notary.
- Submit the application to the Land Registry.
- Once approved, a separate title deed is created for each unit.
- Tax and financial aspects
- Deal with VAT and income tax on the sale of new units - this may also apply to major renovations, so beware.
- Older homes can often qualify for a tax exemption (after meeting the time test).
- Consult tax implications with a professional before starting the process.
⏱ How much time does it take
In practice, it depends on the complexity of the house, the number of apartments and the readiness of the documents, but typically:
- Surveying the house and drawing up floor plans - 1 to 2 weeks
- done by an authorized designer/architect
- if the drawings are already up to date, the time is reduced
- Preparation of the text part of the owner's declaration - 3 to 5 days
- Description of units, common parts, land shares
- prepared by a lawyer or experienced real estate specialist
- Verification of signature + submission to the Land Registry - 1 day
- Approval by the cadastral office - usually 20 to 30 days
- if the documentation is free of errors, it can be faster
💡 Practical Tip: The biggest delays occur at the beginning when gathering accurate documents and at the end when waiting for the cadastre. If you want to speed up the process, deal with the lawyer and the designer at the same time.
Do you need advice on how to subdivide your house?
Do you want to know whether it makes sense to divide your apartment house in Prague into residential units or to sell it as a whole?
Get in touch - I'd be happy to go through the options with you, from initial analysis to sale.
Jan Halíř - specialist in private sales of apartment buildings and hotels in Prague
📞 +420 774 741 611
🌐 janhalir.com | ✉️ info@janhalir.com
