BUYING property in the Czech Republic is not as straightforward as heading down to West Cork to make a purchase. In order to buy property in the Czech Republic, you must first have a legal presence in the state.

The most common way of doing this is to set up a private limited liability company in the Czech Republic. While it's not a problem for anyone from Ireland to do this, there is a financial outlay involved . . . a minimum equity capital of CZK200,000 ( just over 7,000 at current rates), as well as lesser amounts to notary fees, which usually come to an additional 1,000 or so. The whole process of company registration will take about three months, and then you're good to go.

The procedure is designed to dampen foreign speculation . . . a wise move, perhaps, when one considers the attractiveness of the Czech market and its inherent potential for galloping property inflation, particularly being surrounded by wealthy countries such as Austria and Germany.

From the point of view of the foreign investor, the good news is that these restrictions are due to be lifted in 2009, in line with the open market policies of the EU.

The slightly less good news on the Czech property front is that VAT on new building projects is expected to increase from 5% to 19% in 2008. So, if one is considering investing in property in the Czech Republic, now might be a good time to act.

According to Bohemian-based estate agent Addy Coolbergen, demand in Prague "has reached its highest point", although it is still strong for some of the "top class" projects. He and his family have been based in the Czech Republic for 15 years and Addy has become something of an expert in the Czech property market.

His offices are in Cesky Krumlov . . . just 25km from the Austrian border. The town is possibly one of the most perfectly preserved and gob-smackingly beautiful mediaeval towns in Europe and a UNESCO World Heritage site since 1992.

Yet, property is still inexpensive in the town: apartment costs are running at almost a third of the price of their Prague counterparts.

There is a steady increase in the amount of foreign and Czech investment and according to Coolbergen, it's his fellow Dutch citizens who have been quickest off the mark. They represent the majority of foreign investors in the area, along with Germans and Austrians, with British investors beginning to get in on the act too.

One of the very few Irishmen who have chosen to live here is Eoghan O Suilleabhain from Sligo. He purchased his large former forest-ranger's home four years ago, where he now resides with his Czech wife Lucie and their son Ruadhan. They live in a location that is the picture-postcard epitome of Bohemian rural life and the view from their property includes the bell tower of the 13th-century Cistercian abbey in the nearby village of Vissy Brod. The surrounding area is one that was virtually a "no-go" zone during the Cold War (except for residents) on account of its close proximity to the border with Austria. Despite the availability of government incentives, the area is still very rural and unspoilt.

Eoghan feels very much at home here and maintains that the Czech Republic is "a great place to live", with a level of health and social services to make the average Irish citizen weep with envy.

Even though the area is quite rural and remote, he's only a 10-minute walk away from his nearest railway station, from where there are connections to the whole of Europe.

Just 10km away is the resort of Lipno.

It's located on the shores of Lake Lipno . . .a man-made lake created by the damming of the Vltava River for the nearby hydroelectric station. The lake provides boating and swimming in the summer and ice-skating in winter. A new marina has been recently completed, with space for 100 vessels and there are good-quality ski runs and a toboggan run on the slopes that overlook Lake Lipno.

Development has been relatively slow but things are now moving apace with a number of large-scale accommodation developments stretching ever westwards along the shoreline . . . the whole scene beyond the marina looking like a dusty battlefront to entice holidaymakers and investors from overseas. During the 1970s, Czech citizens were afforded the right to purchase holiday homes on limited-sized plots and the resulting tall timber 'chatas' are to be seen in great numbers here too.

Some of these can be bought for as little as 30,000. In general, house prices in the area are steadily rising but are still cheap compared to Ireland. A four-bed detached house in Vissy Brod or one of the nearby towns can be purchased for 70,000 - 100,000.

Here is an area where site values are rising at the rate of 32% annually, where one can boat in the summer, ski in the winter and hunt wild boar in the forests.

Although South Bohemia, like much of the Czech Republic, does have a strong industrial base, it is the region's unspoilt character that makes it a constant draw for people looking for that little piece of paradise.

>> Coolbergen Consulting: 00420-380 743269; www. coolbergen. czechweb. cz >> Marina Lipno: 0031 26353 7700;

www. dormio. nl/marinalipno
BUYERS' GUIDE
>> To buy property you need a legal presence in the state. The most common way of doing this is to set up a private limited liability company (SRO) in the Czech Republic. A minimum equity capital of CZK200,000 (just over 7,000 at current rates), as well as lesser amounts to notary fees, which usually come to an additional 1,000 or so is required. The whole process of company registration will take about three months. These restrictions are due to be lifted in 2009
>> VAT on new building projects is expected to increase from 5% to 19% in 2008 Consider investing in areas outside Prague to get a better deal, but do your research before you buy.

>> Aer Lingus flies direct daily from Dublin to Prague and three times a week from Cork to Prague. Czech Airlines also fly daily direct from Dublin to Prague and there are connections four days a week via Stansted airport with Ryanair to Linz, Austria.