Tax depreciation spreads the purchase price of a building across the expenses of earning rental or business income. Land is not depreciated. Enter only the price of the building, not the land price in the purchase contract. The depreciation group comes from the annex to the Income Tax Act, using the classification of constructions.
Building depreciation calculator
Enter only the price of the building. Each year's depreciation is rounded up to whole crowns.
Exclude the land. Whole crowns.
Depreciation in the first year
CZK 42,000
Number of years: 30
Total over the full period: CZK 3,000,000
| Year | Depreciation | Residual |
|---|---|---|
| 2026 | CZK 42,000 | CZK 2,958,000 |
| 2027 | CZK 102,000 | CZK 2,856,000 |
| 2028 | CZK 102,000 | CZK 2,754,000 |
| 2029 | CZK 102,000 | CZK 2,652,000 |
| 2030 | CZK 102,000 | CZK 2,550,000 |
| 2031 | CZK 102,000 | CZK 2,448,000 |
The yearly amounts add up to the entry price. The calculator does not apply technical improvement or partial use for taxable income.
What part of a property is depreciated#
Most apartment buildings, family houses, and other buildings fall into group 5 and are depreciated over 30 years. Group 6, over 50 years, covers in particular hotels, office buildings, department stores, museums, and buildings that are cultural monuments. If you are unsure of the CZ-CC code, check the annex before you claim the depreciation. Technical improvement increases the entry price, and this calculator does not model that.
Depreciation of the building is not a line in the service-charge settlement. It is not added to the tenant's advances.
Straight-line and accelerated depreciation#
The method is chosen at the start and then stays. Straight-line depreciation is a percentage of the entry price. In group 5 that is 1.4% in the first year and 3.4% after that. In group 6 it is 1.02% and then 2.02%. Accelerated depreciation in the first year is the entry price divided by the coefficient (30 or 50). Later years take twice the residual value, divided by the coefficient for later years (31 or 51) minus the number of years already depreciated.
Each annual amount is rounded up to whole crowns and cannot exceed the remaining entry price. A building of CZK 3,000,000 in group 5 has a straight-line depreciation of CZK 42,000 in the first year and CZK 102,000 in every later year. Over 30 years the whole entry price is written off. Accelerated depreciation is CZK 100,000 in the first year and CZK 193,334 in the second, and then it falls.
What to watch#
- Do not include the land. Depreciate only the building.
- Depreciation is claimed by the person who depreciates the asset for income tax. Owning a flat you live in does not by itself create a depreciation claim.
- If the building is used for taxable income only in part, only that share of the depreciation is an expense.
- The calculator does not cover extraordinary depreciation, technical improvement, or a pause in depreciation.
Common questions
Is the land depreciated too?
No. Only the building is depreciated for tax. Split the land price out of the purchase contract and do not enter it here.
How long is an apartment building depreciated?
An ordinary apartment building or family house is in group 5 and is depreciated over 30 years. Hotels, office buildings, and department stores are usually in group 6, over 50 years.
How do straight-line and accelerated depreciation differ?
Straight-line depreciation is almost the same amount each year after the first. Accelerated depreciation is higher at the start and lower at the end. Over the full period both methods add up to the entry price of the building.
Income and costs for the property
Calculate the building's depreciation here. In 2doors you can see rental income and running costs by property and export them at year-end.
See financial reportingA practical calculation, not tax advice. The rates and coefficients are from Act No. 586/1992 Sb., the Income Tax Act, §§ 31 and 32. Before you claim depreciation in a return, confirm the group and that you are entitled to depreciate.