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And not just in Prague. I know that when I moved from Czech three years ago the police were still occasionally arresting German sex touists and raiding brothels. This was in the city of Plzen. Maybe it is different in Prague but I think nationaly it is still illegal. There was a movement a few months age to legalise prostitution but there was a big outcry against it, especially from abroad that I think it was put aside although I could be worng.
I think often times the police just look the other way as with many other crimes, unfortunatly so it may seem legal. This was the case in Cesky Decin where near the German Border where there are many children foced into prostitution. A foregin news agency German or French, I cant remember exactly came and did an undercover report about this which actually showed little boys being raped by sex tourists and when confromted with this the police in the region just turned the other way and basically said " we will do nothing".
So, I dont think it's leagal but it probably seems like it due to the lack of law enforcement. Maybe you'll encounter a few hookers in the city center but there are definitely NOT many of them. They were clearly not Czech or if they were they were romanies. There was always a policeman in the area mainly I think becasue they make more money as pick pockets which is the main personal security issue in Praha like every major city on earth.
I have only ever had one attempt to pick my pocket and that was a romany hooker on an early morning walk who tried to bump into me asking for a light. Needless to say she got pushed away PDQ. This is not a suggestion that you push hookers around as they often have a minder close by.
