The Building Authority for Prague 1 made a crucial decision in July 2021 when it imposed a fine of CZK 20 000 on a landlord who offered his apartments to tourists for short-term rentals. According to the Building Authority, short-term renting is a commercial activity; therefore, it cannot be carried out in premises that are licensed as residential premises, but it is necessary that these premises are licensed as accommodation facilities.
The decision of the Building Authority for Prague 1 was confirmed in August 2021 by the Municipality of the City of Prague. The issue is now before the court. It is likely that this issue will be subsequently addressed by the Supreme Administrative Court, which could shed more light on the matter.
It is possible that the courts will uphold the decision of the building authority and the landlords will be forced to either cease their activities or to re-license their premises. In the case of a re-licensing as an accommodation facility, it would undoubtedly already be a business activity and the landlords would therefore have to operate such an activity under a business licence.