Seasonal Rental Opportunities in the Czech Republic

Published on January 21, 2026 and written by Cyril Jarnias

Long overshadowed by its Western European neighbors, the Czech Republic is now establishing itself as one of the most interesting playgrounds for short-term rentals. Tourism in full rebound, respectable rental yields, clarifying regulations, explosion of platforms like Airbnb or Booking: all signals point to a high-potential market, but one that requires a methodical approach.

The challenge for an investor or owner looking to get into short-term rentals in the Czech Republic is twofold: identify where the most profitable demand truly lies, and understand a legal framework that is more demanding than it appears, especially in Prague.

A Tourist Market Shifting into High Gear

The first key to understanding the potential of short-term rentals in the Czech Republic is the dynamics of its tourism. The country has surpassed its pre-pandemic visitor levels: in 2024, 22.8 million people stayed in collective accommodations, for 57.3 million overnight stays. This is more than in 2019, which was considered a record year.

This growth is not just a post-Covid rebound: according to data from the Czech Statistical Office, visitor numbers are increasing in both volume and length of stay, with an average extension of overnight stays in several regions and a marked recovery of long-haul clientele (China, Israel, Turkey, Saudi Arabia, Canada).

The structure of demand also favors short-term rentals: families, groups of friends, digital nomads, active seniors, wellness clientele in spa towns… Many segments that increasingly favor apartments, houses, and cottages over traditional hotels.

Why Short-Term Rentals Are Attractive in the Czech Republic

Financially, the numbers show a clear advantage of short-term rentals over long-term leases, especially in major cities. In Prague, simulations and feedback from professionals indicate that a well-located two-room apartment can generate around 45,000 CZK in monthly income through short-term rentals, compared to about 20,000 CZK for a standard lease.

Nationally, specialized data platforms estimate that a typical short-term rental property takes in an average of about 42,000 CZK per month, with an occupancy rate around 58%. The best, highly professional hosts can achieve revenues between 90,000 and 150,000 CZK per month, particularly in Prague or certain tourist resorts.

Meanwhile, the traditional rental market has tightened significantly: since 2020, long-term rents have jumped by about 30% in Prague, with a rise of about 10% in 2024 alone and a vacancy rate near zero for apartments under €800 per month. As a result, gross yields on residential rentals generally range from 3.5% to 4%, with net yields reduced by 1.5 to 2 percentage points. Short-term rentals can boost this yield, provided seasonality and regulation are managed.

Prague, the Nerve Center of Short-Term Rentals

It’s impossible to discuss opportunities in the Czech Republic without starting with Prague, the true epicenter of tourism and short-term rentals.

Aggregated data from recent years shows that the capital concentrates between a quarter and a third of all short-term rental listings in the country. According to various specialized sources, there are between 8,500 and over 9,000 active rental units on the platforms, and over 12,000 listings if inactive ones are included. An urban planning report highlights that before the pandemic, about 14,000 Prague apartments were listed on Airbnb and Booking, a volume that dropped and then rebounded, now reaching over 9,000 units, of which more than 3,300 are in the central district of Prague 1.

This concentration has visible effects: in the historic districts of Staré Město, Nové Město, Josefov and Malá Strana, apartments dedicated to short-term rentals are estimated to represent nearly 11% of the housing stock, and up to one in five homes in some highly touristic areas.

Performance Figures That Remain Very Strong

Nevertheless, Prague retains exceptional attractiveness for short-term rentals. Its performance indicators are among the highest in Central Europe, and even in Europe as a whole.

The average situation can be summarized as follows:

This is clearly a market where short-term rentals are not just a supplement, but a full-fledged economic pillar. Compared to the national average, Prague shows nightly prices 25 to 40% higher, higher occupancy rates (around 65% on average, more in the best districts), and marked seasonality, with peaks notably in May, July-August, and October.

Average Prices and Supply Structure

From a visitor’s perspective, Prague still appears as a “cheap” city compared to Western capitals, which fuels the demand for short stays. A series of market data gives an overview of price levels:

Extremes observed during certain periods illustrate the market’s dispersion: some last-minute rentals have been found for 8–10 USD per night, while others reach several thousand dollars for large luxury apartments downtown.

Travelers themselves prioritize very concrete amenities: internet connection, equipped kitchen, washing machine, but also parking, spa, pool, jacuzzi, air conditioning, pet-friendly policies, etc. In Prague, about 15% of short-term rentals are listed as “pet friendly,” with a slightly higher average rate than the norm.

Key Districts: Historic Center, Desirable Peripheries, and More Affordable Areas

Geographically, several zones clearly stand out for short-term rentals in the capital.

The districts most sought after by tourists are Prague 1 (historic center), Prague 2, and the Old Town (Staré Město). The concentration of monuments (Prague Castle, Charles Bridge, Astronomical Clock, St. Vitus Cathedral…) and the permanent buzz make it a natural magnet. But these are also the sectors with the strongest regulatory pressure and saturation, with an increased risk of future restrictions.

Other districts offer a more interesting yield/risk ratio:

Performance data shows that these “central second-ring districts” (Karlín, Vinohrady, Smíchov, Holešovice, Žižkov) are among the most profitable, with occupancy rates above 75–80% and annual revenues often above 25,000 USD for a well-positioned property.

At the other end of the spectrum, more peripheral districts like Prague 15 show much lower price levels (about 78 USD per night on a small sample average), but can appeal to a family clientele or budget travelers, especially when they are well connected to the metro or tram.

Beyond Prague: Regional Cities and Tourist Resorts

While Prague concentrates attention, data shows that short-term rentals are also developing in many secondary cities, sometimes with a more flexible regulatory framework.

Analyses by AirROI and other players identify several leading markets:

Brno, the capital of South Moravia, is particularly interesting: a major university city and technology hub, with over one-fifth of the country’s students, it combines cultural tourism, business travel, and study stays. Average monthly revenues there are around 1,000 USD per property, with an occupancy rate of about 45%, leaving room for improvement for well-located and well-managed properties.

Ostrava, the country’s third city, and other regional destinations (Plzeň, Olomouc, Lipno nad Vltavou, mountain resorts like Černý Důl or Loučná pod Klínovcem) offer a mix of leisure tourism (hiking, skiing, cycling), urban getaways, and occasional events. Regulation there is generally considered “low”, giving investors more leeway, while requiring good marketing strategies to capture demand that is less automatic than in Prague.

The Special Case of Spa Towns

Another very specific niche: spa resorts, notably the Karlovy Vary region and the “spa triangle” with Mariánské Lázně and Františkovy Lázně. These towns attract a clientele that is both medical, wellness, and high-end.

Mariánské Lázně and Cheb, for example, have well-documented Airbnb markets analytically:

These numbers show two different realities: Mariánské Lázně has a narrower market and more vacancy, while Cheb, with limited supply, sees its best hosts achieve occupancy rates exceeding 90% in high season and high monthly revenues. The very strong dependence on German clientele in these areas, however, underscores the need to closely monitor cross-border flows and the economic climate across the border.

Season and Booking Behavior

The Czech Republic, a continental country with a temperate climate, experiences marked seasonality that every investor must factor in.

We can roughly distinguish:

Data from Mariánské Lázně and Cheb illustrates this cycle well: the best months for revenue and occupancy are in summer (July–August), the lowest in November or March. Revenues can vary by -30 to +40% around the annual average depending on the month.

Another element not to be overlooked: booking behavior. A trend towards last-minute bookings is observed, whereas previously visitors booked their stays up to six months in advance. In regional data, the average booking lead time is around 36 to 41 days, but some highly demanded months (August, for example) see bookings made 2 to 2.5 months before arrival.

The Platform Boom and the Structuring of Supply

Short-term rentals in the Czech Republic rely heavily on major international platforms: Airbnb, Booking.com, Vrbo, Expedia, or Tripadvisor. Aggregators like Likibu listed over 5,000 short-term rentals in Prague alone via about thirty providers, with 17,600 properties listed on some portals.

A striking element highlighted by studies on the Prague market: about 80% of the apartments listed on these platforms belong to multi-property owners, who therefore own more than one property dedicated to this activity. This is far from the simple private individual occasionally renting out their primary residence; short-term rentals have become a semi-professional, even industrial segment, with large managers operating dozens, even hundreds of units.

For an individual investor, this trend has two consequences. On one hand, competition is professionalizing, which demands a high level of quality, hospitality, and responsiveness. On the other hand, it becomes relevant to consider fully delegating management to a specialized company, at the cost of a typical commission of 10 to 15% of the rent collected, in order to achieve a comparable standard and reduce the workload.

Yields and Long-Term vs. Short-Term Comparison

From a strictly financial perspective, it is useful to compare the long-term yield of a property held for short-term rentals and that of a property permanently rented to a traditional tenant.

At the scale of Prague, real estate studies describe gross yields on the order of 3.5 to 4% for standard lease properties, with peaks around 4 to 5% in some peripheral districts. Net yields, after deducting expenses, maintenance, management fees, and taxation, are more often closer to 2 to 2.5%.

A useful benchmark often cited by analysis platforms is the break-even occupancy rate: in the Czech Republic, for an average property, it is around 30 to 40%. In other words, above this level, the owner truly begins to make their investment profitable and generate interesting net income. Major markets like Prague or certain tourist resorts far exceed this threshold, which explains the attraction to short-term rentals.

A Legal Framework Tightening, But Becoming More Readable

One of the most sensitive aspects of the Czech short-term rental market is its regulation, which is evolving. Long vague, the legal framework is becoming clearer thanks to a series of court decisions and an ongoing reform, driven in part by the European Union.

Rental or Accommodation: A Crucial Distinction

Czech law establishes a clear difference between: substantive law and procedural law.

– The rental of a dwelling, which responds to a need for durable housing (classic lease) and falls under the Civil Code, with few specific administrative constraints;

– The accommodation service, which aims for a temporary stay and constitutes a commercial activity, subject to legislation on tourism activities and commerce.

For the tax administration, a “short-term lease” is defined as a lease not exceeding 48 consecutive hours; beyond that, a different regime applies, particularly regarding VAT. But beyond this time criterion, courts have relied on other elements to qualify rentals via platforms: price per night or per week, absence of obligation for the occupant to perform routine maintenance, frequent turnover of clientele, etc.

The Prague Municipal Court, in several recent rulings, has thus clearly indicated that Airbnb-type rentals cannot fulfill the purpose of a housing lease in the classical sense and must be considered an accommodation service. This reclassification has serious consequences: the need to obtain a trade license, specific tax obligations, and compliance with regulations for accommodation buildings.

The Obligation to Reclassify Buildings

Building law distinguishes between buildings for residential use (apartment buildings, family houses) and accommodation buildings (hotels, guesthouses, tourist residences). However, the methodology published by the Ministry of Regional Development insists: an apartment classified as a residential dwelling cannot be “spontaneously” used as commercial accommodation; in principle, a change of use procedure would be required.

The Future eTurista System: Towards Enhanced Transparency

Legislatively, a major reform is in preparation. To comply with European Regulation 2024/1028 on data sharing in the short-term accommodation sector, the Czech Republic is preparing an amendment to the law on tourism activities.

This text provides for several structuring advances:

The eTurista testing phase is expected to last about six months, before an official launch planned for summer 2025, subject to the final adoption of the amendment by Parliament and the Senate.

Concrete Obligations for Hosts

Even today, an owner operating a property for seasonal accommodation must comply with a range of obligations:

– Obtain a trade license by registering in the commercial register (accommodation activity), paying an administrative fee;

– Maintain a register of accommodated persons and keep the data for six years, in compliance with GDPR;

– Report to the police authorities the presence of non-EU nationals, notably via the UbyPort portal;

– Pay the local tourist tax, capped at 50 CZK per person per night, or the accommodation capacity tax (up to 6 CZK per bed per day) depending on the municipality;

– Pay VAT where applicable, and income tax related to the activity;

– Pay, where applicable, fees for audiovisual equipment (TV/radio license) and fees to the collective management organization (OSA) if music is played as part of the activity;

– Comply with obligations related to building safety (fire extinguishers, emergency exits…) and hygiene.

Municipal Powers and Local Tensions

Municipalities, especially in Prague, have been denouncing for years a “gray zone” situation where platforms sometimes refuse to cooperate or transmit tax data. Official estimates put the share of undeclared stays at 40 to 70%, for an estimated annual shortfall of about 800 million CZK for the state and 55 million for municipalities.

The initial draft law intended to give cities significant powers: capping the number of licenses, limiting the number of rental days per year, imposing restrictions on the number of people per square meter in residential buildings, or even prohibiting short-term rentals in certain sectors or at certain times. Under pressure from some MPs, these most radical provisions have been watered down, but the general trend remains towards regaining control.

On the ground, homeowners’ associations and residents often complain about nuisance (noise at night, damage to common areas, insecurity) and the rise in real estate prices induced by the conversion of apartments into quasi-hotels. A poll cited in the debates even showed that 62% of respondents in Prague would like to completely ban Airbnb in the historic center.

For an investor, the message is clear: short-term rentals remain legal and lucrative, but they are increasingly regulated. It is essential to check, before purchase, not only national regulations, but also homeowners’ association rules, building usage, and any local rules specific to the neighborhood.

Tourists, Digital Nomads, Spa Clients: Complementary Segments

Another element strengthens the potential of short-term rentals in the Czech Republic: the diversity of visitor profiles.

Classic international tourists remain the bulk of the contingent, with Germans very clearly in the lead, followed by neighbors (Slovaks, Poles, Austrians) and several major transatlantic markets (United States, United Kingdom). This clientele favors short stays of 2 to 4 nights in Prague, but stays longer in spa or mountain regions.

Digital nomads and remote workers are gaining traction, stimulated by the creation of a dedicated visa for digital nomads in IT and marketing professions. This program, launched in mid‑2023 and expanded in 2025, targets qualified professionals from countries like Australia, Canada, Japan, South Korea, the United States, the United Kingdom, and now Brazil, India, Mexico, Israel, or Singapore. These temporary residents, who can stay up to three years by obtaining a long-term residence permit, look for furnished rentals for several months, often between a classic lease and a tourist rental, with strong requirements for internet connection, workspace, and comfort.

This overlapping of segments is an important asset: it allows, for the same property, to mix stays of a few nights, mid-term stays of a few months, and long-term stays depending on the time of year, optimizing occupancy.

Investment Strategies: Where and How to Position Yourself?

Considering all these parameters – profitability, regulation, demand profile – several short-term investment strategies emerge in the Czech Republic.

1. The Prague Center Bet: Maximum Yield, High Regulatory Risk

Acquiring an apartment in Prague 1 or 2, in the immediate vicinity of the historic center, remains the most lucrative short-term strategy: high nightly prices, record occupancy rates, abundant international clientele, especially around major events and peak periods. Examples of properties like large apartments near Charles Bridge, accommodating 10 to 16 people, show astronomical rates (several hundred, even over a thousand dollars per night).

But this strategy is also the most exposed: strong tensions with neighbors, increased risks of future restrictions (quotas, annual day caps, targeted bans), potential building reclassification, frequent administrative checks. It therefore requires great legal vigilance, an excellent relationship with the homeowners’ association, and rigorous guest management to limit neighborhood issues.

2. Urban “Secondary” Districts: Yield / Security Balance

Focusing on Vinohrady, Žižkov, Smíchov, Karlín, Holešovice or other well-connected districts outside the most saturated perimeter often allows for a cheaper purchase, while still benefiting from robust seasonal rents and a more stable residential environment. These sectors also offer potential for retreat towards classic long-term or furnished rental if regulation were to tighten on short-term.

3. Regional Cities with Strong Tourist Identity: Niche but Solid

Brno, Český Krumlov, Karlovy Vary, Plzeň, Olomouc, as well as mountain or lake localities like Lipno nad Vltavou, Černý Důl or Loučná pod Klínovcem, offer another investment profile: less volume, less mass effect, but often less competitive markets and a more flexible regulatory framework.

4. Mixed Strategies and Possible Switch to Long-Term

Many investors adopt a hybrid approach: short-term or mid-term rental during high seasons and events, more classic rental the rest of the year, notably to students, expatriates, or digital nomads. This flexibility, however, requires a good grasp of the different legislations (housing lease vs. accommodation contract) and clarity with the homeowners’ association.

One of the Czech market’s strengths is that in case of an excessive tightening of short-term rental regulations, the extreme tension in the residential rental market allows for a switch back to long-term leasing without too much difficulty, especially in large cities. It is therefore recommended to select properties that “hold up” in both scenarios, avoiding products too specialized in pure disguised hotel services.

Costs, Expenses, and Management: Don’t Underestimate the Bill

If short-term rentals promise high revenues, they also incur a heavier cost structure than a classic rental. Service charges in buildings (heating, water, common area electricity, cleaning, elevator) jumped over 30% in one year in the Czech Republic, with spectacular increases in gas (+46%), water (+38%), and electricity (+31%). In Prague, the average monthly bill for these services reaches about 4,500 CZK, more than in most other regions.

In the context of a short-term rental activity, additional costs include:

– Cleaning between stays, sometimes enhanced (disinfection, complete linen change, etc.);

– More frequent maintenance (higher guest turnover);

– Administrative management costs (stay declarations, foreigner registration, tax tracking);

– Platform costs (Airbnb, Booking, etc. commissions);

Many owners therefore use specialized management companies, which handle rentals from A to Z: finding guests, check-in, cleaning, collection, relationship with the homeowners’ association, routine maintenance. Commissions generally vary between 10 and 15% of collected rent, but risk smoothing and time savings can justify this cost, especially for foreign investors.

Outlook: A Promising Market, But One That Is Professionalizing

All indicators converge: the Czech Republic, and Prague in particular, should see its rents (short and long term) continue to rise in the coming years. Projections mention annual increases on the order of 5% or more, while rental yields remain competitive compared to other Central European capitals like Budapest or Warsaw.

In this context, the most interesting opportunities will likely be found:

The Czech Republic thus offers a real-life laboratory of what short-term rentals are becoming in Europe: a sector with high potential profitability, provided one enters with open eyes, a fine understanding of the terrain, and acceptance of playing by rules that are gradually aligning with those of traditional hospitality.

For investors ready to work with solid data, comply with the legal framework, and care for the quality of their properties, short-term rental opportunities in the Czech Republic remain, at this stage, among the most interesting on the continent.

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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