Tax regulation mechanisms (Exemption of Real Estate Tax)
Updated: 10.01.2019
Author: Boris Valach
Properties used solely for the generation of electricity from wind, hydro, biogas, or biomass are exempt from real estate tax (§ 9 par. 1 Letter m Act No. 338/1992).
Eligible technologies
Wind, hydro, biogas as well as biomass are eligible for the tax exemption.
| Wind energy | Eligible for wind plants (§ 9 par. 1 Letter m No. 8 Act No. 338/1992). |
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| Biogas | Eligible if the generated electricity is fed into the grid or supplied to other customers (§ 9 par. 1 Letter m No. 9 Act No. 338/1992). |
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| Hydro-power | Eligible for small hydro power plants up to 1 MW (§ 9 par. 1 Letter m No. 7 Act No. 338/1992). |
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| Biomass | Eligible if the electricity is not generated via direct combustion of biomass (§ 9 par. 1 Letter m No. 11 Act No. 338/1992). |
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Amount
The tax benefit is an exemption from real estate tax.
Addressees
Entitled party: The subjects eligible are the operators of renewable plants generating electricity.
Obligated party: The obligated party is the state.
Procedure
Process flow | Exemption from real estate tax can be claimed through the tax return (§ 9 par. 5 Act No. 338/1992). |
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Competent authority | Tax office |
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Distribution of costs
| State | The cost of tax exemption is borne by the Czech state which receives lower tax revenue. |
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Czech Republic
