For many foreigners living and working in Czech Republic, buying property is a natural next step.

But getting a mortgage as a non-citizen comes with additional requirements. Czech banks apply stricter criteria to foreign applicants and carefully assess income stability, residency status, and financial history. Here’s what you need to know in 2026.

Bank or Non-Bank: What’s the Difference?

Bank Mortgages

Czech banks are the main source of mortgage financing and operate under strict regulations set by the Czech National Bank (ČNB).

Advantages:

• Lower interest rates
• Strong consumer protection

Disadvantages:

• Longer approval process
• Higher requirements for income and residency

Banks pay particular attention to employment stability, income sources, and credit history — especially for foreign applicants.

Non-Bank Options

Some non-bank institutions (such as building savings banks – stavební spořitelna) may offer more flexibility and approve cases that traditional banks reject.

However, this usually comes at a cost:

• Higher interest rates
• Additional fees
• Fewer legal protections

What Affects Mortgage Approval?

Citizenship and Residency

EU citizens generally face fewer obstacles. For non-EU nationals, requirements are stricter — particularly without long-term residence or permanent residency.

Permanent residents typically have stronger approval chances. Temporary residence (usually 1+ years) may also be sufficient if income is stable.

Income
Income earned in Czech Republic is easier to verify through employment contracts and bank statements. Foreign income often requires additional review and may slow the process.

Down Payment (LTV)
In 2026, applicants:

• Under 36 may qualify with a 10% down payment
• Over 36 typically need at least 20%

The higher the down payment, the better the conditions.

Credit History

Banks review existing debts and payment history carefully. Fewer financial obligations and no late payments significantly strengthen your application.

Required Documents

Foreign applicants typically need:

• Passport and residence permit
• Proof of income (employment confirmation, tax return for self-employed, bank statements)
• Reservation agreement or purchase contract
• Property valuation
• Overview of existing loans and credit cards

In many cases, documents must be officially translated into Czech.

How Long Does It Take?

Mortgage approval for foreigners usually takes 30 to 90 days. Delays are often caused by verification of foreign income, document translation, or residency checks.

If you have signed a rezervační smlouva, starting early is strongly recommended.

How to Improve Your Chances

• Demonstrate long-term ties to Czech Republic (job, family, business)
• Show savings or financial reserves
• Reduce existing debts before applying
• Prepare a complete document package in advance

A Practical Example

A 32-year-old IT professional working in Prague with temporary residence applied for a CZK 7 million apartment.

• Down payment: 10% (CZK 700,000)
• Stable Czech income
• Clean credit history

The bank approved a CZK 6.3 million mortgage at approximately 4.3% interest.

Stable employment, clear financial history, and the minimum required down payment made the approval possible.

Final Thoughts

For foreigners, obtaining a mortgage and buying property in Czech Republic is entirely achievable — provided you understand the rules. The more financially stable and transparent you appear to the bank, the higher your chances of approval.

On Finaram.cz, readers can:

• Compare whether buying or renting makes more sense
• Estimate how much they may be able to borrow
• Submit a mortgage application online
• Explore different mortgage options and scenarios
• Receive alerts when interest rates change

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