Government Decree No. 516 / 2025 Coll.
Government Decree on the procedure for calculating the cost rent for available rental housing
Valid
Regulation
Effective from 01.01.2026
Text versions:
01.01.2026
10.12.2025
516
GOVERNMENT REGULATION
of 29 October 2025
on the procedure for calculating the cost rent for available rental housing
The Government orders pursuant to § 11b (4) of Act No. 211 / 2000 Coll., on the State Fund for Investment Support, as amended by Act No. 126 / 2024 Coll. and Act No. 176 / 2025 Coll.:
Subject matter
This Regulation establishes a procedure for the calculation of the rent of the costs associated with the construction or acquisition and operation of the available rental apartment, the buildings with available rental apartments, the set of available rental apartments or the set of buildings with available rental apartments (hereinafter referred to as "the accessible residential space ') in the first year of their operation.
Terms
For the purposes of this Regulation:
(a) a set of buildings with available rental apartments of several buildings with available rental apartments which:
1. have the same lessor,
2. have been built or acquired to provide affordable rental housing;
3. are provided at the same date for affordable rental housing; and
4. Standing on or for the same land or parcels which have common borders, one application for authorisation of a project has been submitted,
(b) the duration of the sustainability of the available living space, the maturity of the longest of the foreign sources provided or the longer of the period determined under another legislation, but always for at least 20 years;
(c) the life-expectancy of the building for which the apartment can be used for housing.
Costs relevant for the calculation of the cost rent
(1) The costs relevant for the calculation of the cost rent in the available residential area consist of costs
(a) for the preparation of construction or acquisition pursuant to § 4 and for construction or acquisition pursuant to § 5 to 7;
(b) operating under § 8 and other life cycle costs under § 9.
(2) The costs referred to in paragraph 1 include value added tax.
(3) The costs referred to in paragraph 1 shall also include a proportion of the costs of:
(a) accessories and areas usually associated with the use of an affordable rental apartment, which include, in particular, corridors, cellars, collars, strollers, drying rooms, laundry rooms, common spaces, balconies, terraces and front yards; and
(b) parking spaces, their accessories and their usually related areas, which include, in particular, service roads and their accessories, construction structures and technical systems of buildings for the operation of parking spaces and recharging points.
Cost of preparation of construction or acquisition
(1) The costs of preparing the construction or acquisition consist of costs incurred for project preparation, economic studies and financial studies.
(2) The costs referred to in paragraph 1 shall be determined on the basis of the price contained in the contract or order. The cost of movable goods owned by the lessor shall not be included in the costs referred to in paragraph 1, except for the cost of items whose price may be determined in accordance with the first sentence.
(3) Where it is possible to demonstrate their material and temporal link to the preparation of construction or acquisition, the costs referred to in paragraph 1 may also include:
(a) the wage costs of the lessor where the activity is carried out by the lessor himself;
(b) the cost of acquisition of material, transport and other direct costs directly linked to the activity carried out; and
(c) a proportion of energy, rent or insurance costs and other indirect costs.
(4) Where other areas are included in the project or object of the acquisition, in addition to the available rental apartments and their accessories or areas normally associated with their use, and where the costs referred to in paragraph 1 cannot be linked only to the areas of the available rental apartments and their accessories or areas normally associated with their use, the costs referred to in paragraph 1 shall be further multiplied by the proportion of the floor areas of all available rental apartments, their accessories or areas normally associated with their use, except common areas, to the total floor area of the building without common spaces.
Construction costs
(1) The construction costs consist of:
(a) the cost of building an accessible living space, its accessories and areas normally associated with its use;
(b) the cost of removing the construction or putting the site in its original state, where this obligation results from a contractual document, legislation or decision of a public authority;
(c) the infrastructure costs necessary to connect the building to each available rental apartment or set of buildings with each available rental apartment to the backbone infrastructure;
(d) the budget reserve;
(e) other costs associated with construction, which are project management costs, project preparation costs other than those referred to in Article 4 (1) and engineering costs;
(f) the cost of establishing rights to immovable property;
(g) other financial costs not forming part of foreign resources pursuant to Article 11 (3);
(h) the cost of acquiring the movable property of the lessor used to construct the available living space.
(2) The costs referred to in paragraph 1 (a) to (c) shall be determined on the basis of the prices of the budget item contained in the contract concluded with the contractor of the available residential space. The costs referred to in paragraph 1 (e) and (h) shall be determined on the basis of the price contained in the contract or order. The costs of movable goods owned by the lessor shall not be included in the costs referred to in points (a) to (c) and (e) of paragraph 1, except for the costs of items whose price may be determined in accordance with the first or second sentences.
(3) Where it is possible to demonstrate their physical and temporal link to the construction, the costs referred to in paragraph 1 (a) to (c) and (e) may also be included in:
(a) the wage costs of the lessor where the activity is carried out by the lessor himself;
(b) the cost of acquisition of material and transport costs and other direct costs directly related to the activity carried out; and
(c) a proportion of energy, rent or insurance costs and other indirect costs.
(4) The budget reserve referred to in paragraph 1 (d) shall not exceed 10% of the total costs referred to in paragraph 1 (a) to (c). The budget reserve shall be included in construction costs only if it was not part of the budget item referred to in paragraph 2.
(5) The costs referred to in point (f) of paragraph 1 shall be determined on the basis of the price contained in the contract, or the normal price, as determined by the law on the valuation of assets at any date in the four years preceding the first provision of the available residential space for affordable rental housing, as the lower of those prices. If the price contained in the contract is not known, if the contract is more than 8 years of age or if the acquisition title was not the contract, the price normally used under the asset valuation law shall be used. In cases where the normal price cannot be determined, the market value of the immovable property shall be determined in accordance with the Asset Valuation Act.
(6) Where other areas are included in the project, in addition to the available rental apartments and their accessories or areas usually associated with their use, only the costs associated with the construction of the available rental apartments, their accessories and areas normally associated with their use may be included in the costs referred to in paragraph 1 (a) to (c).
(7) The costs referred to in paragraph 6 shall be calculated:
(a) deducting the total value of items which do not relate to available rental apartments, their accessories and areas usually associated with their use from the total value of the item budget referred to in paragraph 2;
(b) a multiple of the total value of the item budget referred to in paragraph 2 and the proportion of the floor areas of all available rental apartments, including their accessories or areas normally associated with their use, with the exception of common spaces, to the total floor area of the building without common spaces, unless it is possible to follow point (a).
(8) Where other areas are included in the project, in addition to the available rental apartments and their accessories or areas normally associated with their use, the costs referred to in paragraph 1 (d) may be included in the budget, unless the budget reserve was part of the budget item, and the costs referred to in paragraph 1 (e) to (h), only the costs associated with the construction of the available rental apartments, their accessories and the areas normally associated with their use. In such cases, before adding them to the construction costs, the amount of such costs shall be multiplied by the share of the floor areas of all available rental apartments, their accessories or areas normally associated with their use, with the exception of common spaces, to the total floor area of the building without common spaces.
Cost of acquisition
(1) The cost of acquisition consists of:
(a) the cost of acquiring the available living space, including the right of construction, the burden in kind, the land, its accessories and the areas normally associated with its use;
(b) other costs associated with the acquisition, in particular administrative costs.
(2) The costs referred to in paragraph 1 (a) shall be determined at the level of the price contained in the contract or the price normally established under the Law on the valuation of assets at any date in the four years preceding the first provision of the available residential space for affordable rental housing, as the lower of these prices. If the price contained in the contract is not known, if the contract is more than 8 years of age or if the acquisition title is not a contract, the price normally used under the Asset Valuation Act shall apply. In cases where the normal price cannot be determined, the market value of the immovable property shall be determined in accordance with the Asset Valuation Act. The costs referred to in paragraph 1 (b) shall be determined according to the price included in the contract or order.
(3) Where other areas are included in the subject matter of the acquisition, in addition to the available rental apartments and their accessories or areas normally associated with their use, the costs referred to in paragraph 1 (a) shall consist only of the value of the available rental apartments and their accessories or areas normally linked to their use, which shall be the subject of the valuation referred to in paragraph 2. In that case, the costs referred to in paragraph 1 (b) shall be determined by the total value of these costs multiplied by the proportion of the floor areas of all available rental apartments, their accessories or areas usually associated with their use, with the exception of common spaces, to the total floor area of the building without common spaces.
Costs for the construction or acquisition of parking spaces, their accessories and related areas
The costs of the construction or acquisition of parking spaces, their accessories and their usually related areas shall be included in the costs of the construction or acquisition only up to the costs of the number of parking spaces, as a minimum required by the legislation governing the construction requirements at the place where the accessible living space is located.
Operating costs
(1) Operating costs are, in particular, those which are expected to be spent effectively for the period of sustainability of the available living space.
(a) the management of the accessible living space, its accessories and areas usually associated with its use;
(b) insurance of the accessible living space, its accessories and areas normally associated with its use;
(c) revisions, inspections and inspections according to other legislation and relevant Czech technical standards;
(d) real estate tax;
(e) repairs and maintenance, the need for which arises from the normal use of the available living space, its accessories and areas usually associated with its use.
(2) The costs referred to in paragraph 1 shall be taken into account for the sustainability period of the available living space.
(3) Costs paid by the lessee under the legislation shall not be regarded as costs referred to in paragraph 1.
(4) The costs referred to in paragraph 1 (a) are also those of legal, real estate or expert activities.
Other life-cycle costs
(1) Other life-cycle costs shall mean the costs or the proportional part of the costs incurred as a result of long-term wear on the building elements of the available rental apartment or building to which the apartment is available, its accessories and areas usually associated with their use, and the technologies used. In the cost rent, the other life-cycle costs shall include, at the expected level of the costs effectively incurred over the lifetime of the building to which the rental apartment is available at the time of the calculation of the cost rent components, at:
(a) repair and maintenance of the technologies and building elements of the available rental apartment or building to which the apartment is available, its accessories and areas normally associated with their use, and the technologies used, except for the costs referred to in Article 8;
(b) a technical evaluation of the available rental apartment or building to which the available rental apartment is part, its accessories and areas usually associated with their use.
(2) The costs referred to in paragraph 1 shall be calculated on a pro rata basis over the lifetime of the building in which each available rental apartment is located.
Common provision
If the price of the real estate in the contract is denominated in a foreign currency, the rate declared by the Czech National Bank for the valuation date will be used to convert it into Czech currency. For the conversion of the currency to which the Czech National Bank does not declare the exchange rate, the market rate of that currency can be used for the US dollar for the valuation date and the rate of the Czech currency for the US dollar declared by the Czech National Bank for the valuation date. The normal or market value may be determined only by an expert, an expert's office or an expert's institute under the law governing the activities of experts, expert's offices and expert's institutes or by a person entitled to value assets under the Commercial Law.
Calculation of the cost rent
(1) The cost rent shall be calculated per square metre of the floor area of the available rental apartment for 1 month as set out in Annex 1 to this Regulation.
(2) The cost rent shall be calculated using the small flat coefficient and the occupancy coefficient set out in Annex 1 to this Regulation.
(a) of the operating costs referred to in Article 8 and other life cycle costs referred to in Article 9, and
(b) the deductible costs of the construction or acquisition of the available residential space, after deduction of the subsidy from the costs associated with the construction or acquisition referred to in Article 3 (1) (a).
(3) The eligible costs referred to in paragraph 2 (b) shall be calculated from the own and foreign resources used to finance the costs associated with the construction or acquisition referred to in Article 3 (1) (a) and the financial costs.
(4) The eligible costs referred to in paragraph 2 (b) shall be the sum of:
(a) own resources distributed at a pro rata monthly rate over the sustainability period of the available residential area; and
(b) the monthly instalments of the foreign resources provided used to finance the construction or acquisition of the available living space, its accessories and the areas normally associated with its use and financial costs.
(5) The monthly instalment referred to in paragraph 4 (b) shall be calculated as a monthly annuities of foreign resources for the duration of the sustainability of the available residential area and with interest rates on those resources at the first date of repayment of those resources. If interest is equal to zero, the monthly annuities shall be calculated as the value of foreign resources distributed at a pro rata monthly rate over the sustainability period of the available living space. In the case of deferral of instalments prior to the start of the operation of the available living space, the sustainability of the available living space shall be reduced by the grace period, the resulting repayment period being no less than 20 years. In the case of deferral of instalments after the start of the operation of the available residential area, the period shall not change.
(6) For the purposes of comparison with market rental according to the price map according to Decree No. 456 / 2024 Coll., on price maps of rent, the provider may at the same time assign the apartment according to the number of accommodation rooms, if such comparison is required by legislation or subsidy conditions.
Calculation of the cost rent for public-private partnerships
(1) In the case of public-private partnerships, the cost rent is calculated in accordance with Annex 2 to this Regulation.
(2) The procedure laid down in paragraph 1 shall be followed only if:
(a) the investor and the manager of the accessible living space is a legal person governed by private law who is also the purchaser of the available living space or supplier of the construction of the available rental apartment; and
(b) the lessor and owner of the available living space shall be the Czech Republic, its contributory organisation, the local self-governing body or the legal entity established or established by them, which, by virtue of the contract concluded, pays the legal person referred to in (a) a regular payment for availability.
Efficacy
This Regulation shall take effect on 1 January 2026.
Prime Minister:
Prof. PhDr. Fiala, Ph.D., LL.M., v. r.
Minister for Local Development:
Ing. Kuhlánek v. r.
Příloha č. 1
Annex No 1
Calculation of the cost rent
1. Cost rent in the first year of operation of the available rental apartment is calculated as the product of the occupancy coefficient of the apartments, the small apartment coefficient and the sum
(a) deductible costs pursuant to § 11 (3) to (5) per m2 floor area of the available rental apartment and 1 month of the sustainability of the available rental apartment;
(b) the value of the operating costs in accordance with § 8 per m2 floor area of the available rental apartment and 1 month of the sustainability of the available rental apartment; and
(c) the value of the other life-cycle costs according to § 9 per m2 floor area of the available rental apartment and 1 month of the lifetime of the building to which the available rental apartment is part.
2. The cost rent per square metre of the floor area of the available rental apartment per month shall be calculated using the following mathematical formula and rounded to integers:
NN is the monthly cost rent per m2 of floor area of the available rental apartment in the first year of its operation;
ZN is the annual deductible costs pursuant to § 11,
PP is the floor area of all available rental apartments located in the available residential area, calculated according to the building law,
PN is the monthly cost of operating according to § 8 per m2 floor area of all available rental apartments located in the available living space,
The ONCC is the monthly amount of the other life cycle costs according to § 9 per m2 floor area of all available rental apartments located in the available living space,
KOB is a occupancy coefficient of 1,05,
KMB (v) is the coefficient of a small apartment where v is the floor area of the available rental apartment in m2 and where it applies:
The annual deductible costs referred to in Article 11 shall be calculated according to the following mathematical formula:
where:
VZ is the own resources used to finance the costs associated with the construction or acquisition of the accessible living space referred to in Article 3 (1) (a) after deduction of the subsidy from those costs, including the resources for the acquisition of land or buildings necessary for the creation of the accessible living space by construction or acquisition,
nDU is the number of years determined by the sustainability period of the available living space, humiliated by the grace period before the opening of the available living space, if such deferral has been granted;
CZl is the total amount of a given foreign resource used to finance the costs associated with the construction or acquisition of the available living space pursuant to Paragraph 3 (1) (a) after deduction of the subsidy from these costs, where l takes the values 1 to L and indicates the order of the loan from the total number of loans L,
rl is the annual interest rate on a given foreign resource, the amount of which is CZK;
nl is the number of years determined by the maturity of the foreign source CZl, possibly humiliated by the postponement of the foreign source CZl.
If rl is equal to zero (i.e. in the case of financing wholly from own resources or from foreign sources at zero interest rate), the following mathematical formula shall be used for the calculation of the annual deductible costs according to Paragraph 11:
The monthly operating costs and other lifetime costs in the first year of operation shall be calculated according to the following mathematical formulae:
where:
PNDU is the total cost of operating the available living space pursuant to Section 8 foreseen for the sustainability of the available living space at the time of calculation,
ONCCDŽ is the total amount of other life-cycle costs foreseen for the lifetime of the building to which the apartment is available at the time of calculation,
nŽ the number of years of determined lifetime of the building to which the available rental apartment is part is humiliated by the time of deferral of payments before the start of operation of the available rental apartments, if such deferral has been granted.
Příloha č. 2
Annex No 2
Calculation of the cost rent for public-private partnerships
1. In the case of public-private partnerships, the cost rent shall be calculated as the product of the housing occupancy coefficient, the small apartment coefficient and the sum of the availability payment and other costs of the lessor humiliated by the subsidy granted to the lessor calculated per m2 of floor space available and 1 month.
2. The amount of the availability payment shall be based on the results of the selection procedure per person referred to in Article 12 (2) (a) and shall be laid down in a contract to ensure the accessible living space between the person referred to in Article 12 (2) (a) and the person referred to in Article 12 (2) (b).
3. The availability payment shall cover all costs relevant for the calculation of the cost rent pursuant to § 11 (2) to (5) and the contracted annual income of a person under § 12 (2) (a).
4. Other costs incurred by the lessor are all costs which the lessor has to bear to ensure the creation and operation of the available living space, which are not included in the availability payment, but are part of all costs relevant for the calculation of the cost rent pursuant to § 11 (2) to (5).
5. The value of the grant shall be deducted from the availability payment if it has been provided to the person under Paragraph 12 (2) (b) as part of the financing.
6. The cost rent per square metre of the floor area of the available rental apartment per month shall be calculated using the following mathematical formula and rounded to integers:
where:
NNPPP is the monthly cost rent per square metre of the floor area of the available rental apartment built or acquired in the form of public-private partnerships in the first year of its operation,
KOB is a occupancy coefficient of 1,05,
KMB (v) is the coefficient of a small apartment where v is the floor area of the available rental apartment in m2 and where it applies:
PZ is the monthly value of the availability payment,
JN is the other costs incurred by the lessor of the available living space built or acquired in the form of public-private partnerships budgeted for 1 month in the first year of its operation,
D is the total amount of the subsidy granted to the lessor of the available residential space for construction or acquisition, budgeted for 1 month,
PP is the floor area of all available rental apartments located in the available residential area, calculated according to the building law.
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Regulation Information
| Citation | Government Decree No. 516 / 2025 Coll., on the procedure for calculating the cost rent for affordable rental housing |
|---|---|
| Regulation Type | Regulation |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 10.12.2025 |
|---|---|
| Effective from | 01.01.2026 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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