Rented property is situated in the Czech Republic
Rental income from immovable property located in the Czech Republic is taxable in the Czech Republic. The tax base is equal to income less tax-deductible costs.
Rented property is situated abroad
Rental income received by Czech tax residents from immovable property situated outside of the Czech Republic is taxable in the Czech Republic. The tax base is equal to income less tax-deductible costs.
However, under the respective Double tax treaty, income from immovable property located abroad may also be taxed in the country where the property is situated. According to the relevant double tax treaty, the tax paid abroad may be credited against the relating Czech tax or the rental income may be exempted with progression from the overall Czech tax base.
Rental loss may be applied against non-employment income received in the same tax period or against rental or other non-employment income in the following 5 tax periods.