Rental yields in Prague: what investors actually earn

Property forums are full of yields. "Five per cent in Prague 3", "six in Prague 9", "four in the centre". The numbers are usually gross, usually computed from advert prices and advert rents, and almost never tell the reader what ended up in the owner's account after a year. This article shows the difference with a worked example and explains why the answer varies across the city.

All the figures below are hypothetical. They illustrate the method and are not a market survey. We do not quote district yields, because no authoritative public series exists and a figure would be out of date quickly.

Gross yield and what it leaves out

Gross yield is the yearly rent divided by the purchase price, expressed as a percentage. A flat that costs CZK 6,000,000 and lets for CZK 25,000 a month brings in CZK 300,000 a year, a gross yield of 5.0%. It is quick to compute, and it is the number advertisers like because it is the highest one.

It omits everything that happens between the rent and your pocket. A month with no tenant. The owner's share of the building's costs. Repairs. Insurance and tax. The cost of finding a tenant. And your own income tax on the rent. Net yield counts all of these.

A hypothetical income statement

Take the same imagined flat and let it for a year.

In this example the 5.0% headline becomes about 3.6% before tax and about 3.1% after. Roughly two-fifths of the rent has gone. A different flat will have different lines, but the shape of the statement does not change.

The tax line

Rental income of a private individual is taxed as income from rental (§ 9 of the Income Tax Act). The owner can deduct actual expenses or use a flat rate of 30% of the rent, capped at CZK 600,000 of expenses; private rental income of this type does not attract social and health insurance contributions (as of 2026; check the Financial Administration). Whether the flat rate or actual costs gives the lower tax depends on the costs and, if there is a mortgage, the interest. Our explainer on the tax on rental income walks through the options. The income is added to your other income and taxed at the rates in the tax return; see how to file a Czech personal tax return.

A landlord who lets as a business, on a trade licence, is in a different regime; the explainer on the flat-rate tax regime shows how the 30% rate for business rental works.

Why yields differ across Prague

A district's yield is the result of two prices, not one. The price of flats and the level of rents. If the premium for buying in a prestigious district is larger than the premium for renting there, the yield falls. This is why central and prestigious districts often show lower yields than outer ones, while outer districts bring lower rents and, in some cases, higher vacancy, longer let-up times and less demand from the tenants who pay the most. Our article on prices by district covers the price side, and the housing market overview gives the national context.

Size matters too. Small flats generally earn more per square metre of rent than large ones, and attract more turnover. A studio can have a higher yield and more work than a family flat. Our guides to studio apartments and one-bedroom flats look at those segments.

Where the numbers come from

Use asking rents with care. An advert is a hope. Ask agents what flats let for in the street, check sold prices where available and read periodic market reports. One such report, the Deloitte Real Index, tracks residential prices on a regular basis; read it as a description of the market and check its method. The Czech Statistical Office publishes rent and price data in its own indices; see what the Statistical Office publishes.

When you have a flat in mind, run the numbers on the rental yield calculator on Hypoteky.com and, for a longer view that includes the exit price and the cost of finance, the ROI and IRR calculator on Hypoteky.com. Both depend on your assumptions.

Tenants, rents and risk

The rent in the statement is not guaranteed. A tenant may leave, pay late or ask for repairs; a vacancy longer than the one month we assumed cuts the net yield quickly. The security deposit is capped at three months' rent and has to be returned at the end of the lease, so it is a cushion for damage and arrears, not income (as of 2026; check the Ministry for Regional Development). Rent increases on the statutory route are limited, and the lease may set its own mechanism, so check the current rules before you assume the rent will rise (check the Ministry for Regional Development). A tenant on an open-ended lease can end it with three months' notice, and a landlord can end it only on legal grounds. Our guide to selling or renting out a flat sets out the choice from the owner's side, and the tenant's view of renting in Czechia shows what your tenant will ask.

Financing changes the picture

A mortgage adds interest to the cost side and magnifies the result: when the net yield is higher than the interest rate, the loan raises the return on your own money, and when it is lower, the loan reduces it. For rental property the rules are tighter. From 1 April 2026 the central bank recommends a loan-to-value of 70% and a debt-to-income limit of 7 for investment mortgages, meaning loans on property bought to let or on a third or further home (as of 2026; check ČNB for the definitions). So the own funds needed for a buy-to-let are larger than for a home you live in. Our guide to buy-to-let in Prague works through the cost and risk side.

Frequently asked questions

Frequently asked questions

What is a good rental yield in Prague?

There is no official benchmark. Compare the net yield, after costs and tax, with what else your money could earn, and look at flats, not averages.

Is gross yield the same as net yield?

No. Gross yield ignores vacancy, costs and tax. Net yield counts them and is always lower.

Do I pay social and health insurance on rental income?

Private rental income under § 9 does not attract them (as of 2026; check the Financial Administration). Letting as a business is different.

Do yields differ between districts?

Yes, because prices and rents do not move together. Check the specific street and flat.

A practical next step

Pick one flat on a portal and write its income statement on a single page, using the lines above. If the net figure disappoints, the flat has done its job: it saved you from a purchase.

This is a general explainer, not legal, tax or mortgage advice.