Security deposit (jistota / kauce)
A security deposit, referred to in Czech law as “jistota”, is money paid up front to cover any debts or damage arising from the tenancy. It is neither a non-refundable fee nor prepaid rent for the final month. Together with any contractual penalty, it is subject to a statutory cap, and the tenant is entitled to interest on it.
Also known as: apartment security deposit, cash security deposit, refundable deposit
How much you can agree on
A security deposit is not required by law – you have to agree on it with the tenant. Under Section 2254 of the Civil Code, the deposit and any right to a contractual penalty must not together exceed three months’ rent. Advance payments for services are not rent and do not increase this base.
To illustrate: with rent of 20 000 Kč, the combined cap is 60 000 Kč. If the deposit is 40 000 Kč, that leaves no more than 20 000 Kč of the cap for a contractual penalty. This does not mean that any penalty up to that amount is automatically reasonable or justified.
What happens to the deposit at the end of the tenancy
When the tenancy ends, you return the deposit. You may set off debts arising from the tenancy against it, such as unpaid rent or documented compensation for damage. Normal wear and tear is not one of them. In the settlement, itemise each claim, the reason for it and the balance to be returned.
As a general rule, the law does not allow set-off of an uncertain or undetermined claim. A future, as yet unknown service charge shortfall therefore cannot stand in for an existing, specific debt. Simply waiting for the service charge statement is no reason to hold on to the entire deposit indefinitely. The conditions for set-off are governed by § 1987.
From the moment the deposit is paid, the tenant is entitled to interest at least at the statutory rate. Section 2254 does not set a single fixed percentage, so if the calculation is disputed, get legal advice. Nor can the tenant simply “live off” the deposit by skipping the final payments without your agreement.
When the money changes hands, keep a record of the amount and the date. When returning it, prepare a clear breakdown of any deductions and the interest. Agree separately on how the later service charge settlement will be handled.
Sources checked on 13/09/2026. A general explanation does not replace a review of your specific contract or individual legal or tax advice.
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