How much will I keep: net proceeds from selling a rental building unit by unit
Published 4 November 2026
Net proceeds from selling a Czech rental building unit by unit equal the sum of all unit purchase prices minus transformation costs, communication and sales costs, settled debts and income tax. The valuation difference against selling the whole building is typically 20–40% higher; the precise figure will be determined only by a feasibility study. Below you will find the calculation procedure step by step and a schematic example in a table.
Summary
- Net proceeds = gross sales from units − transformation costs − communication and sales costs − debts and liens − income tax.
- The typical valuation difference between selling units individually and selling the whole building is +20–40%; the exact figure will be determined by the feasibility study.
- Income tax depends on your situation (holding period test, primary residence, business activity); Act No. 586/1992 Coll. must be assessed with a tax advisor.
- The acquisition tax on immovable property was abolished by Act No. 386/2020 Coll., so buyers do not pay it.
- The Audit and Plan will provide calculation data within 6 weeks and the project moves forward only with confirmed figures.
What net proceeds consist of
Net proceeds are what remains in your account after fulfilling all obligations related to the project and the current financing of the building.
When selling the whole building, the calculation is simple: purchase price minus debts and tax. When selling unit by unit, additional items arise before revenues, and revenues come gradually. Therefore it is good to calculate in these steps:
- gross sales from all sold units,
- costs of transforming the building into saleable units,
- communication and sales costs,
- settlement of debts and removal of liens,
- income tax,
- the resulting amount for payment.
No-one can seriously estimate specific amounts for your building without documents. This article therefore shows the structure of the calculation, not final figures.
Step 1: Gross sales from units
Gross sales are the sum of the purchase prices of all units, not the value of the whole building multiplied by a single rate.
The typical valuation difference between selling the whole building and selling units individually is +20–40%. This is a range of experience, not a promise: it depends on location, condition of the building, layout, tenancy arrangements and demand. The exact figure will be determined by a paid feasibility study, namely the Audit and Plan, the output of which is ready within 6 weeks. You can get a rough idea in the house potential calculator.
Also take into account that revenues come gradually. Ownership of a unit transfers only upon registration with the Czech Land Registry (Katastr nemovitostí), and the Land Registry office cannot decide earlier than 20 days after notifying the owner (Act No. 256/2013 Coll., the Land Registry Act). The average registration period is approximately 22 days. Payment is usually made non-cash via lawyer's escrow account; cash payment is limited to CZK 270,000 per day (Act No. 254/2004 Coll.).
Step 2: Transformation and communication costs
Transformation costs are the investment that creates the valuation difference, and must be deducted before the profit can be calculated.
These include in particular:
- legal preparation and division of the building into units (Civil Code No. 89/2012 Coll.),
- permitting and design steps under the Building Act No. 283/2021 Coll., if required,
- any building modifications and preparation of units for sale,
- resolution of tenancy arrangements and communication with tenants,
- sales activity, namely presentation, negotiations with buyers and legal services for purchase agreements.
The amounts of these items vary in each building and cannot be correctly stated as a lump sum. The project therefore goes through three gates (legal, permit, sales gate) and moves to the next phase only with confirmed figures. This way you see the actual costs before committing to the next step. The procedure is described on the How it works page.
Step 3: Debts, liens and co-owners
Debts secured by the building are paid from the purchase prices of units and reduce the amount you actually receive.
If the building is encumbered by a mortgage or other lien, you need to calculate what proportion of each unit's purchase price the creditor will require for the lien to be removed. In practice this is resolved by agreement with the creditor and payment from the lawyer's escrow account. Also account for other obligations, such as arrears, and for enforcement or insolvency their special arrangements (Code of Civil Procedure No. 120/2001 Coll., Insolvency Act No. 182/2006 Coll.).
For comparison: in property auctions the minimum bid is two-thirds of the final price (§ 336e of the Code of Civil Procedure No. 99/1963 Coll., proportionally for enforcement). Controlled sale of units is therefore often a comparable scenario for an indebted owner worth calculating.
If you are a co-owner, check whether there is any risk of a dispute over pre-emptive rights. The general pre-emptive right of co-owners was abolished in 2020; it lasts only six months from the creation of co-ownership if the share arose by inheritance (§ 1124 of the Civil Code No. 89/2012 Coll.).
Step 4: Income tax and other taxes
Income tax from the sale is governed by Act No. 586/1992 Coll. and its amount depends on how long you held and how you used the property.
In general, income from the sale of immovable property may be exempt if statutory conditions are met, typically upon passing the holding period test or in connection with one's own residence. If you do not meet the conditions, or if you are selling the building or units as a business activity, the income may be taxed. Your specific circumstances are decisive, especially how you acquired the building, the holding period and whether you are selling as an individual or legal entity. Verify the exact conditions and current limits with the Financial Administration or a tax advisor, ideally before starting the project, so that tax can be included in the plan.
Good news for buyers: the acquisition tax on immovable property has been abolished (Act No. 386/2020 Coll.), so it does not increase their costs and does not act as a barrier to selling units.
Schematic example: whole building vs. individual units
The table shows the structure of the calculation in a scheme where the value of the whole building corresponds to the letter H; this is not a real case nor a promise of a result.
| Item | Sale of whole building | Sale unit by unit |
|---|---|---|
| Gross sales | H | H increased typically by 20–40% |
| Transformation costs | none | deduct (to be determined by feasibility) |
| Communication and sales costs | low, one buyer | deduct (to be determined by feasibility) |
| Debts and liens | deduct | deduct from unit purchase prices |
| Income tax | depending on owner's situation | depending on owner's situation |
| Speed of cash receipt | in one lump sum | gradually after registrations |
Unit-by-unit sale is worthwhile when the benefit of increased valuation exceeds the sum of costs and you are willing to accept a longer realisation period. If not, whole building sale may be more suitable. That is why it makes sense to decide based on confirmed figures, not on estimates.
What to do now
First prepare the documents and have the feasibility study calculated; only on its basis does it make sense to decide on the sale.
- Request a current extract from the Czech Land Registry (Katastr nemovitostí) and find out the liens, easements and other entries.
- List the debts and obligations related to the building, including approximate balances.
- Prepare a summary of tenancy agreements and the condition of individual units.
- Find out from a tax advisor or the Financial Administration how income tax will affect you.
- Choose the form of cooperation: Audit and Plan, End-to-end realisation, or Partnership / JV.
You can get a non-binding offer or assessment of the building via the form below the article. The audit output is ready within 6 weeks and you decide on the next steps only after it is delivered.