The UK Chartered Insurance Institute defined holistic financial planning as "the ability to analyze and evaluate a client's circumstances and needs, and an ability to produce a holistic financial solution based on in-depth knowledge and understanding of financial services and products. This knowledge integrates and balances each individual plan in respect of provision for retirement, financial protection against ill health or death and saving and investing for future needs."

With respect to foreign investors purchasing residential real estate here, there are quite a few complex issues to be considered as part of a holistic planning process. It's critical to explore these issues before you make a purchase. If you've structured the deal badly, it's going to be very difficult to go back to the seller and ask for the original contract to be ripped up. So it's critical to organize the correct ownership structure at the outset.

One of the most important considerations is who, or what, will own the property. Since EU accession, persons holding residency permits have been allowed to purchase property in their own name. There is also the popular s.r.o. route for those foreigners not eligible for a residency permit.

Investors who are able to consider both of these options need to make a number of decisions. The most fundamental issue is the reason for the investment in the first place: Is it a second home, or will it be rented out to tenants? How many properties will be purchased? What is the planned investment period?

If the properties are to be rented, then the potential yield needs to be considered, as does the likelihood of finding suitable tenants. Once this is established, the investor needs to consider the tax implications. Which would be the most tax-efficient ownership route — s.r.o. or personal? An understanding of the Czech tax regime for both scenarios is important, as is an understanding of the tax regime in the investor's home country. This is not only important for income taxes and corporate taxes, but for inheritance taxes if one wishes to leave assets to the next generation.

Also high on the list of concerns is a consideration of mortgage options. Banks in the Czech Republic are able to lend to foreign investors, and the demand for mortgages has been increasing dramatically. Many investors are unaware that banks here treat private owners and companies differently. There guidance in finding the most suitable deal before you buy anything is important.

Personal mortgages can have repayment terms of up to 30 years, whereas company loans tend to be for five to 15 years. The monthly repayments, depending upon the period of the loan, will be markedly different, and the shorter-term loan repayments could potentially be higher than the monthly rent.

Some investors need an additional applicant on the mortgage application. Such an example could arise when the investor's income does not meet the banks' criteria, or in the case of older applicants who want a repayment term to extend beyond retirement. This is relatively straightforward in the case of a personal mortgage, but adds additional complications if the owner of an s.r.o. needs an additional applicant.

The structure of the deal will also determine whether the bank requires the applicant to take out life insurance. This is not always required, particularly if there is a tenant. However, if the applicant has no plans to rent the property being mortgaged (for example, a second home), then it is likely that the bank will require life insurance. Coverage from a reputable company from the home country can often be used, or a broker can search for the best available insurance rates here.