Every self-employed person in the Czech Republic shall pay taxes and insurance properly. There are 3 basic payments you shall take care of:
- Czech Income Zivno Tax, also known as Self-employment Tax (daň z příjmu)
- Czech Social Insurance
- Czech Health Insurance
Let’s take a closer look at the mandatory registrations of every Freelancer in the Czech Republic
What shall I, as a freelancer, be registered with?
Once your trade license is active and you want to start working, you shall register yourself with 3 Czech authorities.
- ČSSZ (Social Tax Office)
- Finanční úřad (Czech Financial Tax Office)
- VZP, OZP, … (Czech Health Insurance Office) – you can choose which one do you want
Czech Social Insurance
Successfully registered with the Social Tax Office? Then it’s time to set up the payments. Social Tax is always paid for the current month.
How much is for Social Insurance?
The minimum deposit for social insurance is 3 852 CZK per month for the year 2024. Keep in mind, that the sum changes every year!
Where shall I send the payment?
A bank account can be different for every freelancer depending on your home address. This information can be found in your very first Social Tax registration letter.
What is my reference number for payments of Social Insurance?
Also, can be found in the same letter, above the bank account number.
Example – when to pay Social Insurance?
I am registered from the 1st of March 2024 as a Czech Trade license taxes and insurance payer. I shall pay 3 852 CZK for March max. the last day in March.
Social Insurance – How to pay?
After you are registered in the Czech Social Insurance system, you shall also pay for it as a holder of the Czech Zivno. You became “OSVČ”, which means “Freelancer”. Social insurance is paid for the current month. For example, if you started freelancing in September, you should pay for social security during the September
Health Insurance
The price is 2 968 CZK per month for the year 2024. Here applies the same as with Social Insurance. The sum changes every year. And why? Since the sum is counted from the average salary, which increases every year, then automatically insurance is also more expensive.
Where shall I send the payment?
The bank account is also different, depending on your home address and which Health Insurance Office you chose. Since VZP Office is the most popular, here you can find the one for your region here for VZP clients.
What is my reference number for payments of Health Insurance?
It’s your “číslo pojištěnce”. Can be found on your EHIC card or a temporary confirmation from your health insurance office.
Example – when to pay for Health Insurance?
I am registered from the 1st of March 2024 as a Czech Trade license taxes and insurance payer. I shall pay 2 968 CZK for March between the 1st to the 8th of April since you always pay for the previous month.
You shall still register with all authorities above mentioned, but the payments should be sent to one bank account. Your reference number is your DIČ number without the “CZ” part.
Income Tax payments
Income Tax for freelancers is always different – depending on your annual income. The sum is known once you make a Tax Report. If you are a Flat Taxpayer, you don’t have to submit a Tax Report! For this purpose is better to hire an accountant.