Tax regulation mechanism (Exemption from Real Estate Tax)
Updated: 10.01.2019
Author: Boris Valach
Properties used solely for the generation of heat from biogas, biomass, hydrothermal, geothermal energy or heat pumps are exempt from real estate tax (§ 9 par. 1 Letter m Act No. 338/1992).
Eligible technologies
Biogas, biomass, geothermal energy sources as well as heat pumps are eligible for the tax exemption.
| Biogas | Eligible if the generated heat 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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| Biomass | Eligible if the heat is not generated via direct combustion of biomass (§ 9 par. 1 Letter m No. 11 Act No. 338/1992). |
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| Geothermal energy | Eligible if the generated heat is supplied to other customers (§ 9 par. 1 Letter m No. 10 Act No. 338/1992). |
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| Hydrothermal energy | Eligible for small hydro plants with a maximum capacity of up to 1 MW (§ 9 par. 1 Letter m No. 7 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 heating plants.
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
