A practical guide for expats living in the Czech Republic
Living abroad can make your financial life more international than you first intended. You may live here, have children in the UK, own Czech property and still hold pensions, investments or bank accounts elsewhere. When someone eventually has to inherit those assets, more than one country’s legal and tax system may become relevant.
1. Where you live can matter more than nationality
A common assumption is that nationality automatically decides which country’s inheritance law applies. Within much of the EU, the general starting point is the country where the deceased was habitually resident. In some circumstances, a person can choose the law of their nationality to govern their succession. For long-term expats, that makes it important to review which rules could actually apply.
2. Your heirs can live abroad
Children or other beneficiaries do not need to live here to inherit Czech assets. If Czech succession proceedings apply, a Czech court and notary will usually be involved. The international element can mean more paperwork, translations and coordination, but it does not stop an overseas heir from inheriting.
3. A will becomes much more important
An old will written before you moved abroad may still be valid, but it may no longer achieve what you intended. If you own assets in more than one country, your wills should be reviewed together so that one does not accidentally revoke or conflict with another.
4. Czech inheritance rules may surprise you
If someone dies without an effective will and Czech law applies, Czech statutory succession rules determine who inherits. A spouse and children generally fall into the first succession class. Czech law also gives certain protections to children as forced heirs, so simply leaving a child out of a will may not remove every entitlement.
If you have built a life here while retaining assets, pensions or family connections elsewhere, estate planning should include regular reviews of your will, your asset records and the jurisdictions that may be involved.
5. Tax is a separate question
The country whose law decides who inherits is not necessarily the only country interested in tax. The Czech Republic generally exempts inheritances from Czech personal income tax, but another country may still impose inheritance or estate tax depending on residence, citizenship, the location of assets and the beneficiary’s circumstances. This is particularly relevant for families with UK or US connections.
6. Make sure your family can find everything
One of the biggest practical problems is simply identifying the assets. Bank accounts, pensions, investments and insurance policies may all be online and spread across several countries. Your family does not need your passwords, but someone should know what exists, where the documents are and which advisers to contact.
7. Have the conversation before it is needed
Do your children know where your will is? Do they know who your Czech lawyer, notary, accountant or financial adviser is? Do they know which countries hold your assets? These are not cheerful conversations, but they are much easier while everyone is still available to answer the questions.
A cross-border life needs a cross-border plan
International families are completely normal. Their finances, however, do not always fit neatly inside one country’s borders. If you have built a life here while retaining assets, pensions or family connections elsewhere, estate planning should include regular reviews of your will, your asset records and the jurisdictions that may be involved.
The aim is simple: when your family eventually has to deal with your financial life, they should not have to reconstruct it from scratch.
Aisa International works with international clients whose financial lives may span more than one country. Cross-border inheritance can involve legal and tax issues in several jurisdictions, so individual legal and tax advice may be required alongside financial planning.
This article is for general information only and does not constitute legal, tax or financial advice.
