Judgment of the Czech Supreme Administrative Court (NSS) of 17 July 2026, case no. 5 Afs 51/2026-47 (summary by the Financial Administration in Czech).
If a married couple rents out property that belongs to their community property (společné jmění manželů) and nobody declares the rental income, the tax office may assess the tax on either spouse. It does not matter which spouse was more involved in the rental.
The rule in the Income Tax Act
Under § 9(2) of the Czech Income Tax Act, rental income from property in spouses’ community property is taxed by only one of the spouses. Couples normally decide between themselves who declares it.
What happened
Rental income from community property was not declared. The tax office assessed the tax on the husband. He argued that his wife had a closer connection to the rental income, so the tax should have been assessed on her.
The NSS dismissed his cassation complaint. According to the Financial Administration’s summary of the judgment, the tax authorities were entitled to assess the tax on either spouse, and it is irrelevant which spouse had the closer connection to the rental income.
Key takeaways
- The law sets no criteria for choosing which spouse is taxed when nobody filed. The tax office may choose.
- It may not tax both. The same income can be taxed only once, with one spouse.
- Practical arrangements do not matter. Whose bank account receives the rent or who manages the tenants does not change who can be taxed.
- Divorce does not protect you from an assessment for years when the property was still in community property.
What to do
If you and your spouse rent out a flat, house or other property, agree in writing who declares the rental income each year, and make sure it actually appears in that person’s tax return. If you are separating, address any undeclared past rental income before it becomes a dispute.
This article is general information, not legal or tax advice for your specific situation.