A data mailbox enables you to send electronic documents to public authorities free of charge.

From 01.01. 2023, it will be obligatory for all self-employed people (OSVČ) to have a databox and to submit their tax reports electronically. Because of this, it might be a good idea to arrange it now and get properly acquaintanced with it and how it works.

For people who already have a trade license, the databox will be registered automatically and they will receive the login details in the post between 01.01.2023 - 31.03.2023.

It saves time and money from post office fees;

You can send the documents anytime online, you don’t depend on opening hours;

All Czech authorities will contact you through your data box;

You can apply your Income Tax and Light VAT forms electronically. 

You can register for databox at any place that has a Czech point. Czech POINT can be found at most of the Czech Post offices, municipal authorities, notaries, and some embassies. The identity of the applicant is verified at the contact point according to the submitted document - most often an identity card or passport, residence permit or rent contract, visa sticker, or residence sticker, note with your ICO number and email 

Most requests for the establishment of a data box of a natural person and a natural person engaged in business are processed on the spot and the applicant receives a confirmation of the establishment of a data box.

If you decide to set up your data box in the post office you should choose Czech point service on the screen then say at the window – 

Chtěl bych zařídit datovou schránku pro Osvč

Here you can book your appointment for the Czech Point service before you go to the post office.

You should activate your databox within 3 days after you get your registration letter from the post office 

Here you can find instructions for activation. Link for login after the activation: https://www.mojedatovaschranka.cz

If you recently established S.R.O. company, the Datova Schranka will be automatically created for you. 

To Jednatel of the company s.r.o., the Ministry of the interior will send log-in details automatically after the company is registered. If there are more jednatels in one company s.r.o. Each jednatel will get his own Datové schránky account.

*If you forget the login details of your databox/Datové schránky, it can be reset at any Czech post office. You should bring your passport or any ID.  The first password reset is free of charge, and each next password reset costs 200 CZK

A data mailbox enables you to send electronic documents to public authorities for free. Datova Schranka can save you time while dealing with authorities.  

How to set up a databox (datova schránka) in Czech Republic

How to set up a databox (datova schránka) in the Czech Republic

As a taxpayer in the Czech Republic, you need to pay the VAT (value-added tax) once your yearly turnover surpasses 1 million CZK. In some cases, however, it may be profitable to register for the Czech VAT voluntarily.

Other cases in which you need to pay a full Czech VAT is when you inherit a company from someone who was a VAT payer or when you gain assets by privatization, fuse, or the sale of a company. In these cases, you can ask for the cancellation of the VAT registration, but only after 1 year from the registration and if your turnover does not surpass 1 million CZK.

Not only do the VAT payers claim and pay the VAT, but they also have to keep records and submit tax reports and control reports.

You need to include the words “Faktura - daňový doklad” on the invoices and include the information you are a VAT payer.

You need to archive all your VAT evidence and records for 10 years.

Buying a product that with the VAT included costs 1.210 CZK. Since the standard VAT is 21%, here it is 210 CZK. After paying this 210 CZK, the payer needs to keep a record of it, and then at the end of the tax period, they can claim this amount back.

Selling a product that with the VAT included costs 1.900 CZK, the customer will pay the whole amount to the seller and the seller needs to pay the VAT amount (329,75 CZK) to the state.

If the company buys the product for 1.210 CZK and sells it for 1.900 CZK, the gross profit would be 690 CZK. After deducting 329,75 CZK but claiming back 210 CZK, the final tax the seller has to pay is 119,75 CZK. Therefore, the actual profit is 570,25 CZK.

The tax period is one month, however, after 1 year of paying the VAT, you can ask to change that period to a quarter-year period, if you meet the requirements.

When is it profitable to register for the VAT even if I do not have to?

If you buy goods or services from the VAT payers more than sell them.

If your customers are predominantly the VAT payers, as they can claim their VAT back and subsequently see your products or services as cheaper.

If you buy goods in the Czech Republic and sell them to entrepreneurs from the other EU states.

If you sell services to the entrepreneurs with a registered establishment in the other EU states.

If you buy products with the standard VAT of 21% but sell them at the reduced VAT of 15% or 10%.

If you plan to purchase valuable assets, as you can claim the VAT back.

All you need to do is fill a form and send it to the Financial Office. Ideally, you should submit it with proof of your economical activity and the turnover for the last 12 months. If everything goes smoothly, you should receive a confirmation for the VAT registration within 15 days.

Czech financial Tax offices might ask for contracts and invoices for VAT registration.

It is so important to control your income and invoices. If you exceed the 1 million CZK limit in last 12 consecutive months and forget to register for VAT, then you should pay VAT from income from your income after you become a VAT payer.

For example, You reached the 1 million CZK limit in October in the last 12 consecutive months but realized it in December and registered for VAT. So, you should pay VAT from the invoices which you get paid between October and December even if you invoiced without VAT.  Because you became VAT payer in October.

As a taxpayer in the Czech Republic, you need to pay the VAT. What are the requirements, when do you need to pay, and how?

Czech Republic Vat payments - when and how? | Pexpats

When do I have to start paying the VAT?

Czech Online appointment user account can be created only if you have a Czech residency or a Czech visa. If you recently get a new passport but didn’t register it with MOI, then you should use the old passport number. Otherwise, the registration system will deny the registration as MOI doesn’t have your new passport number in their database.

It is impossible to have different user accounts under different email addresses but with the same personal details.

How to make an appointment for Czech Visa or check your Czech visa status?

The Czech Ministry of internal has two online services for foreigners which you may not know about.

1. Online appointment system for immigration office services.

Most of the foreigners already have experience visiting the immigration office without an appointment and waiting almost all day until they call their numbers. Staying at the MOI with many people may be so stressful and confusing.

So, here is the best way to make an appointment and arrange your application or bridging visa for less than 5 minutes.

You should register your personal account on the foreigners’ reservation system and make your appointment reservation and it is in English.

The appointment slots for next month are always available in current months. If you want to get a more available appointment slots, then you should make your appointment a month earlier. 

Appointments for bridge visa renewal.
According to immigration rule, there should not be a time gap more than 30 days between the expiration of your current bridge visa and start date of your new bridge visa. For Example, Your current bridge visa expires on September 30 and you can get a new bridge visa only after September 1. So, your appointment for bridge visa can be any day after September 1.


Your name should be the same as in your passport, Name+Middle name

You can get your account registered here: https://frs.gov.cz/en/node/add/registrace

For checking your visa status, you don’t need to visit or call to MOI offices. Your file status can be checked online. On the day of your visa or residency application, you receive confirmation from MOI officer. You can find your file number on the left bottom of the confirmation. It has a format of OAM-XXXX/XX-2019. You can check your application status online here: https://frs.gov.cz/en/ioff/application-status

If you need complete assistance with the Biometric card procedure, We are happy to help. Please check our Biometric card assistance package.

For making an appointment or checking your Czech visa status you don't need to visit MOI office. You can check Your Czech visa status and appointment online

Online appointment and visa status check for Czech visa | Pexpats

Online appointment and visa status check for Czech visa

Our Quick Guide to the Czech Visa Process

If you’re a non-EU citizen moving to the Czech Republic to find self-employment, you probably have heard that you will need to acquire a  long term visa. This type of visa is very common for people moving to the Czech Republic, but it can be quite confusing for people who aren’t familiar with the application process.

Is it called a Czech Zivno visa or Czech Freelancer visa?

The long term visa is commonly referred to as a Czech freelancer visa or Zivno visa. Typically, before you apply for your long term visa, you apply for and receive your work permit. In Czech, this work permit is called a  Zivnotensky list, hence the name “Zivno visa.”  Both of these terms, freelance visa, and Zivno visa mean the same thing.

The official, legal name is a Czech long term business visa, and the purpose of stay is classified as “business.” This means that you are living in the Czech Republic to work on a freelance basis, and have a freelance work permit, which is also known as a Zivno.

The Zivno visa is very common for TEFL trainees and English teachers from the US and other countries. Having this type of visa means that you invoice your employers each month, and are not a full-time employee for one company.

Your first visa application is arranged by the Czech embassy and the purpose of your stay is the Czech trade license.

The trade license, which you use to apply for your visa, doesn’t have the tax and commercial number, because it is completed in the following two steps:

1. Register for your Czech trade license for foreigners who don’t have a visa yet. Your trade license will be technically registered, but not activated until your Czech visa is approved. Zivno offices will register your trade license without a tax number, and you then have 180 days to get your visa. You cannot legally invoice others for your services before your trade license is activated — which happens after your visa is approved.

2. When your visa is approved and you collect your visa, you must provide a copy of your visa to the Czech Zivno office within three days.  After that, your Zivno is activated and you can start working legally and invoicing your employers.

During this time you should register with social tax and financial tax authorities.  If you are a US citizen, you should also register with the public health insurance office.

Bank statements and invoices cannot be considered as proof of income for zivno visa extension. You should also double-check if your clean income meets the requirements of proof of income for zivno visa renewal before using the tax method 60/40. The requirement of the proof of funds for visa renewal for 2022/2023 can be found here.

The Zivnostensky list expires when your visa expires. So, it is important to extend both your visa and trade license before they expire.  The first Zivno visa is valid for up to 12 months,  after which it can be extended for another 24 months. When you apply for your visa extension, you don’t need to go back to a Czech embassy. Visa extensions are completed in the Czech Republic at the Ministry of the Interior.

To extend your visa beyond one year, you cannot use the same bank letter you submitted for the initial visa approval. You must meet the required income minimum to fulfil the Ministry's conditions.

To avoid any issues with your visa and residency status, be sure to extend your Zivno as well as your visa and residency. If you don’t extend your trade license after your visa extension is approved and collect your biometric card, then your visa would be cancelled, because you don’t have an active trade license.

 Get help setting up your freelancer visa?

If you are non-eu citizen, Czech Freelaner Visa, known as Zivno or Zivnotensky list is the first step to your new life in Czechia as self-employed

Czech Zivno visa or Czech Freelancer visa | Pexpats

Czech Zivno visa or Czech Freelancer visa

What is the EORI number for, and do I need it?

EORI number is an identification number for EU legal persons and individuals who trade with non-EU countries. This number is used for communication with the customs offices all over the EU. Having EORI is obligatory, it doesn’t matter if you import/export to/from the Czech Republic. 

When you have EORI, you basically have the right to import and export goods to non-EU countries, and from non-EU countries.

This number is unique and also available to the public. So, you can also check for someone’s EORI on the internet.

There is also another type of EORI that can be managed online – EORI ad hoc, this type usually has someone who applied as a non-obligatory for EORI and is not a legal person, nor an individual.

Application has to be done in a state where is your business residency. If you have your residency here, then you can apply at any customs office in the Czech Republic. You can also apply electronically. EORI number is an identification number for EU legal persons and individuals who trade with non-EU countries.

We can help you with arranging your EORI number - contact us.

If you are an individual who ordered the items from NON-EU countries, you should also go through customs clearance. For Non- Business receivers, custom offices generate one-time EORI code on their website.

If you are importing from non-eu countries as a business owner, then you must get EORI. How to get it?

EORI – what is it and how to get it? | Pexpats

EORI – what is it and how to get it?

Moving to the Czech Republic (9 facts about living in Czechia)

Moving to the Czech Republic is becoming more popular for foreigners who are looking for new opportunities. Most of the companies are moving their offices to the Czech Republic due to the comfortable life and a lot of opportunities to build a career!

But we all know how difficult to move to another country. But we are here to help you! Below you can see a little guide that helps you to relocate and be prepared for anything!

Most of the population living in Prague know English, but if you want to go deeper into the country and to know new culture and traditions you should know Czech. There are a lot of places in each city where you can attend free classes to study Czech. Most of the Czech people are really happy to teach you some basic words/sentences in case if you want to order one more beer! The plus to know Czech is that it belongs to the Slavic group of languages and for you, it will be easier in the future to understand and learn a new Slavic language!

There are several groups for foreigners that you can find on Facebook and you can join and follow the recent news. Also, in Brno and Prague, it is very popular to meet up every week for a language exchange, where you can meet new people, have a few glasses of beer and make new friends!

The Czech Republic is a popular destination for working and studying purposes, so you will easily meet your new friends.

Almost all employers offer a “Multisport” card as a bonus. This card allows you to visit more than 2000 sports and relaxation facilities.

Most of the Czech and foreign people concentrate on outdoor and sports activities. Every weekend you can notice that locals are going fishing, hunting, mushroom picking in a forest, or do sport such as climbing, hacking, kayaking.

The Czech Republic is well known for its rich history and architecture. You can find everywhere beautiful castles, natural wonders. Prague considers as the most beautiful city in Europe!

It is also, well known for its good train and bus connection.

Before coming to the Czech Republic, it is better to find a job because most of the companies that are hiring foreigners can offer you accommodation for a fee for a couple of weeks, a free phone card, or assistance with the bureaucracy.

If you are an EU citizen, then you can live and work in the Czech Republic without a working permit or visa! If you are not an EEA citizen, you will need a valid working permit.

For third-country nationals, a visa will be required as well. There are two types of a long-term residence permit under which you can work:

1. Blue Card – it is only for people who have a high-level professional or university degrees and or people who have been offered a full-time job contract for at least one year with a salary greater than the average gross of the annual salary of the Czech Republic.

2. Employee Card – it is for people who found their job at the Central Register of Jobs.

In both cases, the employer has to prove that this position is not suitable for Czech and EU citizens.

The Czech Republic has its own currency – the Czech Crown, where 1 EUP is approximately 25 Czech Crowns.

The Czech Republic is considered a country with lower prices than the majority of western countries.

Moving to the Czech Republic is becoming more popular for foreigners due to so many opportunities available, friendly taxes policy for entrepreneurs and freelancers, and good quality of life. If you are looking for a new start of your life, or a friendly environment supporting you to achieve your goals, Prague and the Czech Republic is a great place to be.

The minimum Gross salary in the Czech Republic in 2021 is 15 200 CZK

The average gross salary in the Czech republic is increased to 11.5% in 2021 and the average gross salary in 2021 became 38 275 CZK. For calculating your Net salary, you can use our salary calculator here

Unfortunately for taxi drivers and taxi businesses, the shift has been made to Uber. Why? Because taxis are very expensive. In a city with plenty of convenient public transportation and all-night trams, taxis are not advisable. In actuality, Prague, for the most part, is very walkable. If you do wish to use a taxi, make sure the driver has a proper ID and proper meters. Be warned that prices vary greatly between companies and charges for distance. Call a company rather than pick one up on the street, if possible.

A tip of 5-10% is appreciated in any restaurant with table service, although not mandatory.

Czech spa tradition is an integral part of European culture. There are plenty of Wellness Hotels that offers spa and sauna service. Thanks to the high quality of the country’s natural therapeutic springs, it has earned an exceptional reputation and a high level of respect among Europeans. Massages are also an ever-growing trend in certain regions.

People usually don’t work these days. Schools, shops, banks, post offices, and hospital outpatient departments are closed.

JANUARY 1 Foundation Day of the Czech Republic in 1993

MAY 8 Liberation Day: the end of World War II

JULY 5 The feast of St. Cyril and St. Methodius: the arrival of the Christian missionaries sent from the Byzantine Empire to the Czech Lands

JULY 6 Jan Hus Day: commemoration of the religious reformer’s death at the stake in 1415

SEPTEMBER 28 St. Wenceslas’ Day: in remembrance of the patron saint of the Czech State

OCTOBER 28 Czechoslovak Statehood Day: this day commemorates the establishment of democratic Czechoslovakia in 1918

NOVEMBER 17 Freedom and Democracy Day – commemorating the anti-Communist demonstrations of 1989

If you are currently moving to the Czech Republic and looking for assistance with paperwork - Contact us.

We are a relocation agency based in Prague, helping foreigners to save time while dealing with authority offices & paperwork.

Moving to the Czech Republic is becoming more popular for foreigners. In this article you will learn about 9 facts related to living in the Czech Republic.

Moving to the Czech Republic (9 facts you should know)

New life in the Czech Republic

If you want to apply for a Czech long-term visa,  get a Trade licence or register a company,  among other documents you should provide a criminal clearance report from your home country.  If you are applying for a long-term visa you should also provide a criminal clearance report from the country/countries in which you have resided continuously for more than 6 months in the last 3 years, or, in the absence of such a document, the applicant's statement (Only for US citizen)  Certificates from criminal records are issued by the local police department in your home country. It should be officially translated to the Czech language and it might need an apostille or super legalization.

If you are a US citizen you should make an appointment at the US embassy in the Czech Republic and sign an affidavit confirming you haven’t committed any crime. You can make an online appointment at the US embassy, they will provide the proper form to fill out and sign in person. The cost of an affidavit is 50 US $.

Need a criminal clearance report from the Czech Republic?

Do you need a criminal clearance report for obtaining a Czech long-term visa, or registering a company? Here you can find where to arrange it.

How to get a criminal clearance report? | Pexpats

How to get a criminal clearance report?

If you are applying for any type of Czech visa/residency, you need to present proof of accommodation or rental contract. Since you will not be given your original contract you will have to make a legalized copy of the rental contract which can be depending on the number of pages you have expensive ( 33 kč per page ) That is why we are recommending everyone to get proof of accommodation.

Advantages of having proof of accommodation than rent contract

1. 0 costs;
If you use your rental contract for the residency file then you should leave the original rent contract or make legal copies of the rent contract. A legal copy of each page will cost 33 kč per page
2. Incomplete documents;
If your rental contract has been extended in the last few years you should provide "Amendments" which you might not find
3. Signature;
For proof of accommodation only one legal owner can sign but for rental contract all of them
4. Proof of accommodation can be the landlord's databox in case if he doesn't live in the Czech Republic

Proof of accommodation should be signed by the legal owner of the property or it can be signed by the person representing them in which case you would have to provide the original Power of attorney or legal copy of the power of attorney. If you are a Non-EU citizen then the signature of the owner should be legalized.

If you are an EU citizen, the signature of the owner doesn’t need to be authorized unless you are applying for a Czech Permanent residency!

If you are an EU-citizen duration of the proof of accommodation doesn’t have a fixed period requirement.

Non-EU citizens’ duration of Czech residency/visa depends on the duration of the accommodation proof. For example, if your proof of accommodation is for 2 years, your long-term residency will be also for 2 years.

It is important to have proof of accommodation for a maximum period of time. According to Czech immigration, the first long-term visa is issued for a maximum of 12 months from the date of approval. If you are hoping to get your first visa for the maximum period of time, your accommodation proof should be for at least 16 months because your visa approval process can take up to 4 months

Here you can download the right proof of accommodation forms:

If you don’t want to rent an apartment before your visa approval and need help with a virtual address, please contact us.

Recently, many of our clients have been having trouble obtaining proper rental contracts for visa residency purposes. One of the main conditions of the Czech ministry of interior for visa or residency application is getting the required proof of accommodation confirmation as well as a proper rental contract from a legal owner, according to the land registry office.

In each of the following rental arrangements, not having a proper rental contract can seriously impact your ability to obtain a proof of accommodation confirmation:

Renting out an apartment for a fair and reasonable price, as well as subletting it to other people, is a common practice and source of income for many people in Prague. If you are renting an apartment (or flat) from a subletter, make sure that the person subletting can provide a power of attorney from the legal owner, or a legal document that they have the legal right to re-rent it to third parties.

Also, it is very important to check the specific dates for which they can sublet the flat. For example, if the ‘middle man’ has a rental contract with the legal owner and it expires in 3 months, but you need proof of accommodation for 24 months, then this situation could present a significant problem for your residency renewal.

If you still want to rent a flat from a ‘middle man’ then make sure….

…that the contract is for an unlimited period of time.

…the contract between the subletter and the legal owner states that subleasing of the flat is permitted for third parties.

…they have the authorized power of attorney from the landlord for an unlimited period of time or…

…that they can arrange for the proof of accommodation directly from the legal owner when needed for your visa/residency renewal.

Most residence permits for Non-EU citizens are renewed for 24 months, and if you choose the right flat from the right person, then you will avoid residency renewal problems.

Owners of such flats are corporations (Bytové družstvo).  In this situation, the proof of accommodation form should, and can, be signed by the president of the corporation. Most flats are rented by individuals from the corporation for an unlimited period of time, and these individuals are considered as the de facto owners of the flat.

If you intend to rent a corporate-owned flat, then make sure…

to get the get proof of accommodation form signed by the corporate president for your future residency permit file.

the individual who is subletting you the flat can legally provide a rental contract between them and the corporation.

to verify that there will be no problems in providing you with proof of accommodation in 2 years time if you need to renew your residency.

The city of Prague owned flats. The owner of such flats in the City of Prague. You should never rent this type of flat as it is simply too problematic.

The owners of these flats are companies (s.r.o./Ltd)

The legal rent contract or proof of accommodation should be signed by the CEO of the company. If somebody is representing the CEO, then they need to provide an authorized power of attorney from the CEO.

Please examine all 4 of the arrangements above to see which one fits best when moving in with a flatmate.  Make absolutely sure that your name is added to your flatmate’s current rental contract before you move in.

As mentioned above, most residency permits for Non-EU nationalities are renewed for 2 years.  As such, you will need to arrange for proper proof of accommodation form and a rent contract for those 2 years, for your future residency renewal.

We highly recommend discussing all of these requirements with your landlord before you rent an apartment or flat. This will help you to avoid misunderstandings and future troubles with your residency renewal.

Finally, how to verify the flat ownership?

Mapy.cz has a great app and it works in English. Simply look for the address of the apartment, just like a Google address search, and click on the information from the land registry office. You will be redirected to a page with a list of the legal owners for that address.  Please check the photo below.

If you need virtual proof of accommodation, please check our service page!

If you are applying for Czech Visa or Residency, you will need to prove your Czech address. Learn how to get proof of accommodation in the Czech Republic.

Proof of accommodation for Czech visa | Pexpats

Proof of accommodation for Czech visa

Have you got Rejstrik Obchodu a Zivnosti letter? Be careful of potential scams.

Most of you should have experience with different invoices, fines, and regular tax payments in the Czech Republic. If you recently registered your trade license, you may have received this letter. The sender of the letter is a company called Informatic s.r.o.

The title of the letter uses the term “Rejstrik Zivnosti” which makes the receiver feel confident that it is from Trade license office where one may have registered a trade license recently.

And the context of the text on the letter with your business details says, The company Informatic registers you on Trade license holders register system and you should pay the fees for that registration 1785 CZK. And you will find the payment slip with all the details.

The registration office mentioned in the letter does not exist anywhere in any official public register of the Czech authorities. 
If you have already paid it or have intentions to pay it, you will face real problems!

The letter also states that the form is a partnership proposal and with your payment, you agree on all terms and conditions including automatically extended yearly services payments. So, they will keep sending you invoices each year for non existing services.

IGNORE THAT LETTER! All registration fees are already paid to Government authorities during your trade license registration and you are already registered at the public Business register.

The title of the letter uses the term Rejstrik Obchodu a Zivnosti which makes the receiver feel confident that it is from Trade license office

Rejstrik Obchodu a Zivnosti is scam letter which you may recieve

Letter from Rejstrik Obchodu a Zivnosti is a scam letter which you may receive

Full-time employment or Trade License (contractor)?

If you are hiring or looking for work in the Czech Republic, there are always questions regarding types of job contracts. Some companies prefer to hire someone under the Zivnostensky list while others prefer to hire people as full-time employees. Both types of employment have advantages, disadvantages, or even offer tax relief.

Czech employment taxes and taxes for freelancers

Typical full-time employee taxes, social security, and health insurance rates are higher than for Czech freelancers. To understand how this works, you must understand the three types of salaries: super-gross, gross, and clean.

The difference between the super-gross and clean salary is 45%. Taxes, social security, and health insurance from super-gross salary ( 34% ) is paid by the employer,  and the gross salary ( 11%) is paid by the employee.

For example, if your clean salary is 55 000 CZK per month, then your super-gross salary is 100 000 CZK per month. Here is the detailed percentage of expenses of employees and employers:

A freelancer’s tax, social, and health insurance payments are much less than the payments for full-time employees. Social tax for trade license holders is 2 841 CZK monthly, and public health insurance for trade license holders is 2 627 CZK per month.

Czech trade license holders have a choice of different types of tax methods. Income tax is 15% of net income, and there is a 24 840 CZK tax discount for trade license employees.

The 60/40 calculation method is the most common amongst freelancers in the Czech Republic. The collection of payment receipts or invoices from expenses is not necessary. This method means that you have a fixed  60% cost allowance and 40% income.

For example, if your total gross income last year was 300 000 CZK,  then you calculate 300 000 – 60% cost allowance (fixed expenses) = 120 000 clean income. You will pay 15% tax on the 120 000 CZK, which calculates to 120 000 -15%= 18 000 (tax amount)- 30 840 (tax discount) = 0 CZK (final tax amount).

The advantage of hiring a freelancer with the Zivnostensky list is that the employer can completely deduct the salary payments from the taxes. At the same time, the employer can pay freelance workers a higher salary, as the employer won’t pay the  35% of tax, social security, and health insurance from the super-gross salary. Most employers offer higher salaries to freelance workers to support their social tax and health insurance payments.

After a three-month trial period, full-time employees are protected by Czech employment laws. All Czech employment taxes, social security payments, health insurance, and paperwork are then the full-time employer’s responsibility. The employee gets their clean salary after all tax deductions, and isn’t responsible for regular tax paperwork. Though full-time employees work for only one employer, they can also register a trade license for a side business, in addition to their full-time job.

Trade license holders do their own bookkeeping, pay their own social security and health insurance each month, and are responsible for calculating and filing for their annual tax refund. Unlike a traditional full-time employee, Zivno holders can have multiple partners or employers, as the work relationship between employer and Zivnostensky list holder is more like a partnership. These contracts aren’t protected by employment law, and either side can cancel the cooperation at any time without any sanctions.

If you decided to have a trade license as a side business and keep your full-time employment. You shouldn’t pay social security and health insurance deposits the first year. Your trade license side income taxes and contribution balances are calculated from your gross salary for the full previous year. For arranging your trade license tax return and calculating your final tax and contribution balances  you should propose to form your employer the document called Potvrzení o zdanitelných příjmech ze závislé činnosti

Getting a mortgage, Czech maternity stay, and paternity bonuses

Getting a mortgage is easier for full-time Czech employees than for Zivno holders. Most banks view full-time employees as more trustworthy, as they have a full-time job and stable income, while trade license holders can lose their work contracts or partners more easily.

Full-time employees have the right to 28 days of paid maternity leave. The amount of monthly financial support can range from 30 to 100%  of their salary from the previous 12 months. In most cases, Zivnostensky list holders don’t have the right to maternity leave, a few of them pay sickness insurance.

Czech freelancer visa holders pay for their own social taxes, health insurance, and income tax.  As expats, these Zivno holders may not understand the Czech social insurance and tax system and can face some problems with late payments, wrong payments, and accrue debts on insurance.

For that reason, visas are issued only in specific cases or when there is a high demand for freelancers within an industry, like for Native English-speaking teachers with TEFL certificates. Freelancer visa holders can qualify for a different type of visa if they find full-time employment and receive an employee card, or if they begin studying and get a student visa.

The Czech employee card is the better option for Czech visa applicants who are employed full-time with their company. Their tax and insurance payments are paid by their employer, so the employee has no monthly tax responsibilities. However, it is not possible to switch your Czech employee card to a freelancer or business visa without staying in the Czech Republic continuously for five years.

If you are employed or have a trade license and you are curious about the net salary or taxes. We have a perfect solution for you. You can use our calculators which can help you to check real income and expenses for both freelancers and employees.

If you are hiring or looking for work in the Czech Republic, there are  always questions regarding types of job contracts. Some companies prefer to hire someone  under the Zivnostensky list while others prefer to hire people as full-time employees. Both types of employment have  advantages, disadvantages, or even offer tax relief.

Home

Services

Tax calculator

Invoice Generator

Startup

Blog

Contact Us

Home

Services

Tax calculator

Invoice Generator

Startup

Blog

Contact Us

Pexpats Blog

Immigration

Insurance

Family

Instructions

Taxes

Freelancer