Thus, if a foreign individual or legal person wishes to invest in the real estates in the Czech Republic, although they are formally prevented from such intention by a legal restriction or the continuation of the transition period, they may acquire the real estates through a resident legal entity (e.g. a limited liability company) established for such specific purpose. This practice was common during the existence of more extensive restrictions on the acquisition of the real estates for the non-residents, even with the aim to acquire the real estates for residential purposes.

According to Article 17 of the Foreign Exchange Act, non-residents, who are not the Czech nationals, can acquire domestic real estate in the following cases: by heritage, which involves only the transfer of an ownership title (there are no restrictions on property inheritance, restrictions listed in Act No. 229/1991 Coll. on land ownership do not apply to these cases),

• for diplomatic representation of a foreign country under terms of reciprocity,

• if the real estate is to be acquired into unaportioned co-ownership of a married couple of which only one is a non-resident or where a non-resident acquires property from husband, wife, parents or grandparents,

• through exchange of domestic real estate, which he or she owns, for other domestic real estate the usual price of which does not exceed the usual price of the former real estate (according to Acts on property appraisal No. 151/1997 Coll. and No. 121/2000 Coll., a normal price is understood as a price which has been paid in the sale of equivalent or similar property or in the provision of identical or similar services in regular commercial transactions, as of the day of appraisal),

• if he or she has a pre-emption by reason of a proportioned co-ownership of real estate,

• if it is a construction built by non-resident on his own land,

• provided it is explicitly stipulated by a separate act (legislation on privatisation and restitution).

Non-resident legal entities with branches in the Czech Republic, which are registered in the Commercial Register of the Czech Republic, may acquire real estate, but they may not acquire agricultural land and forest. In other cases, the acquisition of real estate by non-residents is prohibited. This prohibition does not apply to a Czech legal person, which is owned partly or fully by non-residents. In particular, there is no limitation on the purchase of real estate by subsidiaries established by non-residents as subsidiaries are considered to be residents. Non-residents who are Czech nationals have the same rights as residents.