Register of real owners

Register of real owners is an information system administered by the Ministry of justice and maintained by courts, in which real owners of legal entities and trust funds are registered.

A real owner is generally either so called final beneficiary, i.e. natural person who is directly or indirectly entitled for substantial part of trust funds assets, or so called person with final influence, i.e. person who can independently directly or indirectly apply its decisive influence in the trust fund.

A real owner of the trust fund is further always its founder, trustee, person entitled to supervise the trust fund, beneficiaries and persons from the which the beneficiaries may be appointed (i.e. also person who are not beneficiaries, but may be potentially appointed according to the statutes, e.g. children of the founder).

The obligation to file the motion to enter the information into the register lies with the trustee. There is, however, an automatic transmission of data from the trust fund register (information on founder, trustee and beneficiaries) into the register of real owners. In case the trust fund does not have any other beneficiaries, there is no need to file a separate motion.

In case the court finds discrepancy between information entered in the register of real owners and reality, it shall call the trustee to either remove or disprove the discrepancy. In case the trustee does not comply with the call, the court may fine the trustee with an up to 500.000,- CZK fine.

The information on real owners are not publicly accessible. The information may be provided to a person, who proves its legal interest in relation to prevention of legalisation of crime proceeds. The information may further be provided to courts, executors, tax offices, police, etc.

Real estate transfer tax

Obtaining ownership of real estate property also includes, for the purposes of real estate transfer taxes, the dedication or provision of real estate property to a trust fund. The dedication of real estate property is a subject of the real estate transfer tax only if it is made for consideration.

The transfer of real estate for consideration is not exempted from the real estate acquisition tax and is therefore subject to the same tax as other real estate transfers. The transfer of real estate is considered to be made for consideration even in case of non-monetary performance provided in return for the transfer of the real estate.

Only the transfers of real estates situated in the Czech republic are subject to the real estate transfer tax. The tax rate for the real estate transfer tax is currently 4 % of the value of the transferred property.

In case the real estate is transferred by the trustee from the trust fund, the trust fund is the taxpayer, unless the contracting parties stipulate otherwise. Should the trust fund become the taxpayer, the buyer becomes a guarantor.

If the real estate is transferred to the trust fund, the seller is the taxpayer, unless the contracting parties stipulate otherwise. Should the seller become the taxpayer, the trust fund becomes a guarantor.