From April 1, 2026, the Czech National Bank tightened lending conditions for investment properties. If you are buying a third home, or any property purely for rental income, your maximum loan-to-value drops from 80 percent to 70 percent and your total debts cannot exceed 7 times your net annual income (down from 8x). The shift affects fewer borrowers than you might think, but the people it affects often get caught off guard because banks classify properties differently than buyers expect.
This piece is built as twelve practical questions, the same questions our team has fielded most often since the rule took effect. No filler.
1. Does my flat back home count as a "property"?
Yes, in the eyes of Czech banks. They check the international land register databases when assessing your application. A flat in Lisbon, London, or Toronto counts toward your property count for the purpose of the 70 percent LTV rule.
That changes the math meaningfully. If you already own one flat abroad and you are now buying your second flat (your first in Czechia), some banks will treat that as your "second property." Whether the lower LTV cap kicks in depends on the bank's interpretation of "investment intent" plus your stated use of the property. Most banks ask directly during the application: are you going to live in this, or is it for rental?
2. What if I'm buying for my parents to live in?
This is the question that comes up most. The honest answer: it depends on the bank, and there is no single official rule. If your parents pay you nominal rent or live there at no rent, banks generally do not classify it as "pure rental" and the 80 percent LTV may still apply. If your parents pay you market rent, the bank may treat it as investment.
The cleaner path is to be straightforward with the bank during application. Explain the situation. Banks have discretion in classification, especially for family use cases.
3. Do family member co-signers help?
Co-signers help your DTI ratio (debt-to-income) by adding their income to yours, which is now capped at 7x net annual income for investment loans. They do not, however, change the LTV cap. The 70 percent LTV ceiling is property-based, not borrower-based.
Adding a co-signer is most useful when your income alone is the constraint. If the property classification is the constraint, a co-signer does not solve it.
4. Does buying through an s.r.o. avoid the rule?
Buying through a Czech limited liability company is a separate playbook with its own complexity. The LTV cap technically applies to mortgages issued to private individuals. Loans to companies are treated differently and follow corporate lending standards.
That sounds appealing until you look at the trade-offs. Corporate mortgages typically come with higher interest rates, shorter fixation periods, more complex tax treatment on the rental income, and additional ongoing accounting overhead. Most expat buyers find that the savings from a higher LTV are outweighed by the costs over the life of the loan. Worth modeling, but rarely the obvious choice.
5. What if I'm under 36?
Borrowers under 36 still benefit from the 90 percent LTV cap on owner-occupied primary residences. That preferential treatment does not apply to investment properties. If you are 32 and buying a primary residence, you can borrow up to 90 percent of value. If you are 32 and buying a flat to rent out, you are subject to the 70 percent investment cap like anyone else.
6. Does this apply to renovation mortgages?
Renovation loans for properties you already own are not subject to the LTV cap in the same way, since you are not purchasing a property. They are subject to other limits like maximum debt-to-income. If you are taking out a separate renovation loan against your investment property, the cumulative DTI calculation includes both loans.
7. How does the bank know my intent?
Three ways. First, they ask directly during the application. Second, they check the property's registration class (residential vs. commercial) and your stated use. Third, after closing, if you start declaring rental income on your tax return for a property you claimed as primary residence, that creates a paper trail.
Misrepresenting use to get a better rate is mortgage fraud. Some buyers have done it historically and gotten away with it, but Czech banks have become more rigorous in recent years. The risk is not worth it.
8. Can I switch the property classification later?
Yes, but it has consequences. If you bought as a primary residence and later move out and rent the property, you should notify the bank. Most banks allow this without changing the loan terms. A few will reassess and may require partial repayment to bring you under the new LTV cap.
The reverse is also possible. A property bought as investment can later become your primary residence. This usually triggers a positive reclassification and no rebalancing.
9. What about co-ownership splits?
If you buy a property jointly with someone else, the bank looks at both your situations. If one of you already owns two properties and the other owns none, banks may apply the 70 percent rule to the joint loan. Some banks split the analysis: each person's share is assessed against their own property count.
Practically, this matters when expat couples buy together and only one partner has property history elsewhere. Worth raising with the bank early in the conversation.
10. Is the 70 percent on purchase price or appraisal value?
On the appraisal value, which is set by the bank's appraiser. The appraisal value is usually close to the purchase price but can deviate, especially for newly built properties or unusual transactions. If the appraisal comes in below the purchase price, the LTV is calculated against the lower number, meaning you may need a larger deposit than you planned.
Some buyers structure offers contingent on appraisal hitting a target value to avoid this risk.
11. How can you bridge the 30 percent gap?
If you need to come up with 30 percent of the property value as a down payment, options include personal savings (cleanest), liquidation of investments (consider tax implications since investment securities held under 3 years are taxable), a second mortgage on a property you already own, gift from family (subject to gift-tax rules in Czechia for non-immediate family), or a personal loan (expensive and increases DTI).
The most under-used option is structuring the purchase to lower the appraisal need. Buying a property that needs minor renovation can sometimes be cheaper per square meter than turn-key, and you can do the renovation after closing without it counting against the original LTV calculation.
12. When does this rule actually start affecting closings?
The rule took effect April 1, 2026. Mortgages where the application was already in process before that date usually proceed under the previous rules. Anything submitted after April 1 follows the new framework. There is no transitional grandfathering for refixings on existing investment loans, though, so if you are refinancing an existing investment property mortgage, the new caps apply.
The CNB's next macroprudential policy meeting is June 4, 2026. They could adjust the rules further, in either direction. Plan around the current rules but be aware they are not permanently fixed.
Quick decision aid. If your situation might be caught by the new caps, the simplest first step is a 15-minute conversation with someone who has run dozens of similar applications. We do these at no charge to you. The goal is to figure out classification early so you do not waste time on a mortgage path that the bank will reject.
Frequently asked questions
Wondering whether your purchase is caught by the new rules?
Book a 30-minute call. We will look at your specific situation, the property type, and what banks would actually offer.
Let's TalkAbout the author: Nicolas Griss is the co-founder of Profi Expats, a team of CNB-registered financial advisors helping expats in Czech Republic since 2017. He specializes in pension planning, investments, and mortgages for the international community in Prague.