The housing supported by the state in the form of subsidies or tax allowances is common in all countries of the European Union. It affects the development of home ownership and standard of living of the population, and promotes residential development associated with construction industry. The objective of this paper is to determine whether the Czech Republic supports housing in manners that pose no risk to financial stability of institutions providing housing loans and whether it helps to

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... y its tax system in compliance with European Commission recommendations. Its endorsement reacts to the subprime mortgage crisis in the US, which triggered the global economic recession in September 2008. Methods of analysis, synthesis, descriptions of specialized literature and national legislation were used in preparation of the paper.