Non-EU third-country nationals

People who are not EU citizens face a somewhat more challenging situation. Obtaining a visa and permanent residence becomes more difficult, as does buying a property or getting a mortgage. Where banks are relatively benevolent towards EU applicants, complications arise for 3rd country nationals. Citizenship, type and length of residence, occupation and currency of income are just some of the factors that play a major role in whether or not you get a mortgage.

Citizens from non-Schengen countries basically have three options for residency in the Czech Republic. These are:

A long-term visa

If you are planning to stay in the country for more than 90 days in a row, it is necessary to apply for a long-term visa. This is normally issued for a stay of up to one year, with the possibility of repeated extensions. To obtain a visa, you typically need to provide proof of the purpose of your stay, such as study, business, employment or family reunification.

From the point of view of the mortgage applicant, this is the most difficult financing option. The bank is very strict about country of origin, source of income, qualifications and type of occupation. Even so, it is possible to obtain a mortgage after a special individual assessment – you just have to choose the right bank and be very precise with your documentation.

Example: 34 year old IT engineer with Canadian citizenship. He is living in the Czech Republic on a long-term visa, so he does not have a long-term residence permit. After an individual assessment, we were able to arrange a mortgage for an apartment in Prague.

Long-term residence (employee card)

Although it is possible to extend a long-term visa, it is preferable to apply for a long-term residence permit in case of a longer planned stay. This permit has a longer validity and is normally issued for two years. It is also decided in an administrative procedure, which in practice means that you have all the rights of a party to the procedure, including appeals. In contrast, there is no legal right to be granted a long-stay visa and there is no right of appeal if your application is refused.

The long-term residence permit for employment purposes is now replaced by an employment card. This combines a residence permit with a specific work permit and is normally issued for two years with the possibility of renewal.

Long-term residence is a better option than long-term visas. After going through the whole process of obtaining it, the bank perceives you as a much more reliable client, and there are usually at least two or three banks that are willing to negotiate for the loan. This is even for clients whose countries may be perceived as risky from an AML law perspective.

Example: our client, 37 years old, a citizen of Iran. He is a long-term resident of the Czech Republic and is engaged in international trade. Although it took a lot of effort to arrange the loan, we helped him obtain a mortgage in the required amount.

Permanent residency

It is usually possible to apply for a permanent residence permit after five years of continuous residence in the Czech Republic, in some cases even earlier.

Once you have been granted permanent residence, there is usually no problem in obtaining a mortgage. Although the bank does not look at you in the same way as a Czech client, most of them are willing to grant the loan. Still, you really need to make sure you choose a bank – each one takes a different approach to country of origin, work history, type of occupation, marital status, etc.