The Chamber of Deputies is now considering a draft bill on housing support that would allow taxpayers to claim interest paid on housing association loans against the tax base, effective from 1 January 2026. The adoption of the law would thus provide significant tax relief for members of housing cooperatives and would also support the availability of cooperative housing.

In practice, the construction of cooperative apartments is financed by the cooperative itself, which then allocates the individual liability of the part of the loan corresponding to the taxpayer’s share in the housing cooperative. The individual members of the cooperative then repay a budgeted annuity, which includes interest on the loan.

The proposed legislation would thus allow taxpayers to deduct this proportionate amount of interest corresponding to their cooperative share of the cooperative’s total loan, which is not yet possible under the current wording of the law.

The bill sets out the following conditions for claiming the deduction:

• the taxpayer must be a member of a housing cooperative,
• the taxpayer must pay interest on a loan of the housing cooperative,
• the apartment must be used as a permanent home for the taxpayer or his close relatives,
• the maximum deduction limit for the tax year is CZK 150,000.

If the law is passed, taxpayers will be able to deduct interest paid on loans of housing cooperatives from the tax base starting in the 2026 tax year.