How do you get the 25,000 CZK government compensation for freelancers?

Czech parliament has confirmed that freelancers (živno-holders) affected by the government’s coronavirus measures qualify for a one-time payment of up to 25,000 CZK.

This one-time pay-out covers the period from 13 March to 30 April 2020. The money should be received by the end of April 2020.

This relief is for self-employed people whose workplace was closed or who could not work because of the state of emergency.

Who can get the Czech’s government’s compensation for the self-employed?

After many changes, Czech parliament has confirmed the final conditions for receiving compensation: 

1.Your trade licence must be your main source of income. 

2.You trade licence must have been activated by 12 March 2020.

3. You must declare that you were completely or partly unable to conduct your business because of the health threats associated with the coronavirus or the government emergency measures. 

4.People who receive only part of their income from their trade licence also qualify if:

a.they receive a disability or retirement pension

b.they’re on maternity or paternity leave

c.they take care of a disabled person

d.they’re preparing for their future career (students)

25,000 CZK is the maximum amount of compensation for the period from March 13 to April 30 2020. If you weren’t affected for the whole time, you can also apply for part of the period at a rate of 500 CZK a day.

You’re not eligible for this aid if you’re already receiving other social and financial support from the government.

Step-by-step guide to applying for the 25,000 CZK freelancer compensation

The easiest way to apply for the government compensation is by filling out the form online with your personal information. 

You don’t need to write a personal declaration or submit any evidence.

The website wlll generate your completed application from your personal details. 

You can find the online form here: https://ouc.financnisprava.cz/kompenzace/form/bonus

Our team has also prepared a step-by-step guide to completing the form in English:

INSTRUCTIONS

application for czech freelancers compensation step

Fill in the dates when your work activities were negatively affected by the coronavirus measures (od is the starting date and do is the end date) then click on Údaje o daňovém subjektu.

 application for czech freelancers compensation step 2.png

Now fill in your personal details. 

In the first part of the form, enter your IČ (Czech business number) and click on Doplnit dle

When you do this, the website will automatically generate your name and place of residence.

Next fill in your DIČ. Your DIČ  is your tax ID number and usually follows the format CZ+ your IČ. 

Now enter your telephone number, email address and date of birth (datum narození). Your date of birth should follow the format date-month-year.

In the Bankovní spojení section, give the details of the bank account where you want to receive the payment: 

Účet vedený u is your bank’s name. 

Číslo účtu is your bank account number.

Kód banky is your bank code.

After completing this information, click on Údaje k podání.

application for czech freelancers compensation step 1

Finally you should indicate the tax office district where you usually file your tax return. If, for example, you live in Prague 3, then choose hlavní město Prahu then Prahu 3. 

If you’re applying for yourself, then leave the answer Já osobně unchanged in the box below.

Now click on Čestné prohlášení (sworn declaration).

Check that all your details are correct, and if they are, click on Podat.

The website will automatically generate your completed application form.

You can either print the form and sign and drop it off at your local tax office or scan the signed form and send it in by email. 

The addresses of the tax office for each Prague district can be found here. 

The contact information of each tax office can be found here. 

In the subject line of your email, write Žádost o kompenzační bonus pro OSVČ,

If you apply using your databox, there’s no need to print or sign the form. Just attach the downloaded form and send it directly to your tax office…

PraguExpats really wants to help all expats in Prague at this challenging time. We hope this guide greatly simplifies the process of applying for government compensation for freelancers. Stay healthy and safe!

 

How to get a Czech criminal clearance record?

Czech criminal clearance report sample

Most Czech employers will require you to provide them with your Czech criminal record (sometimes also known as a Czech criminal clearance report or Czech criminal clearance certificate).

You’ll also need to present this document when you apply for a visa to another country. If you’ve lived in the Czech Republic and need a visa to travel to another state, then you’ll be required to provide your Czech criminal record.

Where and how do you get your Czech criminal clerance record?

You can apply for your Czech criminal record at any Czech post office using the Czechpoint service. 

To do this, you should fill out the application form. You can either submit it yourself or PraguExpats or another representative can do it for you using a power of attorney.

If you want to apply through Czechpoint, you’ll need to provide the following:

  1. Your Passport
  2. The original or an official copy of your birth certificate. This must be translated into Czech by a court-certified translator.
  3. Fee

If you don’t want to use your birth certificate, there’s another way to get your Czech criminal clearance record. You can do this at the criminal records office at Soudni 1, Prague 4.

How long does it take to arrange Czech criminal clearance report?

If you’re not an EU citizen, you should be able to get your Czech criminal clearance record on the same day you apply.

If you’re an EU citizen, it may take up to 20 days to get your Czech criminal record. EU citizens who already have their temporary residency permit and Czech birth number may be able to speed up the process..

Any other requirements?

The authorities in some countries that need your Czech criminal record may ask for additional certifications. These certifications include an apostille and super legalization

Why you need your Czech criminal clearance record?

Having your Czech criminal record is essential if you want to work for a Czech company or travel to certain countries.

If you’ve already left the Czech Republic or want to avoid the hassle of arranging for your Czech criminal record, please feel free to contact us. We can arrange for your Czech criminal record in Prague using a power of attorney so there’s no need for you to visit any government offices in person.

Need help arranging The Czech criminal clearance report in Prague? Check our service package

Types of Czech visas by the visa codes

Types of Czech visas by the visa codes

Each Czech residency or visa has a different code numbers.  The code of your visa you can find on your Czech visa sticker or on your Czech biometric card/ long-term residency. The meaning of visa codes are below:

A/VL/-/-/–;          single airport transit visa

A/VD/-/-/–;          dual airport transit visa

A/LZ/-/-/–;           service single airport transit visa

A/DZ/-/-/–;           service dual airport transit visa

C/VB/00/-/–;      single-entry visa for up to 90 days – healthcare

C/VB/01/-/–;       single-entry visa for up to 90 days – business activities

C/VB/02/-/–;      single-entry visa for up to 90 days – cultural activities

C/VB/03/-/–;       single-entry visa for up to 90 days – family or friend visit

C/VB/04/-/–;     single-entry visa for up to 90 days – invitation

C/VB/05/-/–;    single-entry visa for up to 90 days – official, political purposes

C/VB/07/-/–;      single-entry visa for up to 90 days – sports activities

C/VB/10/-/–;       single-entry visa for up to 90 days – tourism

C/VB/11/-/–;      single-entry visa for up to 90 days – training (studies, scholarship)

C/VB/12/-/–;       single-entry visa for up to 90 days – transit

C/VB/27/-/–;            single-entry visa for up to 90 days – employment

C/VB/93/-/–;           single-entry visa for up to 90 days – tourism ADS China

C/VB/99/-/–;                 single-entry visa for up to 90 days – other

C/VH/00/-/–;              two-entry visa for up to 90 days – healthcare

C/VH/01/-/–;               two-entry visa for up to 90 days – business activities

C/VH/02/-/–;             two-entry visa for up to 90 days – cultural activities

C/VH/03/-/–;        two-entry visa for up to 90 days – family or friend visit

C/VH/04/-/–;          two-entry visa for up to 90 days – invitation

C/VH/05/-/–;           two-entry visa for up to 90 days – official, political purposes

C/VH/07/-/–;              two-entry visa for up to 90 days – sports activities

C/VH/10/-/–;              two-entry visa for up to 90 days – tourism

C/VH/11/-/–;                two-entry visa for up to 90 days – training – studies

C/VH/12/-/–;          two-entry visa for up to 90 days – transit

C/VH/27/-/–;              two-entry visa for up to 90 days – employment

C/VH/93/-/–;                  two-entry visa for up to 90 days – tourism ADS China

C/VH/99/-/–;                two-entry visa for up to 90 days – other

C/VF/00/-/–;                 multiple-entry visa for up to 90 days – healthcare

C/VF/01/-/–;              multiple-entry visa for up to 90 days – business activities

C/VF/02/-/–;             multiple-entry visa for up to 90 days – cultural activities

C/VF/03/-/–;                multiple-entry visa for up to 90 days – family or friend visit

C/VF/04/-/–;                multiple-entry visa for up to 90 days – invitation

C/VF/05/-/–;                 multiple-entry visa for up to 90 days – official, political purposes

C/VF/07/-/–;              multiple-entry visa for up to 90 days – sports activities

C/VF/10/-/–;                multiple-entry visa for up to 90 days – tourism

C/VF/11/-/–;               multiple-entry visa for up to 90days – training – studies

C/VF/12/-/–;                 multiple-entry visa for up to 90 days – transit

C/VF/27/-/–;             multiple-entry visa for up to 90 days – employment

C/VF/93/-/–;             multiple-entry visa for up to 90 days – tourism ADS China

C/VF/99/-/–;                  multiple-entry visa for up to 90 days – other

C/BD/-/-/–;                    diplomatic single-entry visa for up to 90 days

C/HD/-/-/–;                 diplomatic two-entry visa for up to 90 days

C/FD/-/-/–;                 diplomatic multiple-entry visa for up to 90 days

C/BZ/-/-/–;                   service single-entry visa for up to 90 days

C/HZ/-/-/–;                  service two-entry visa for up to 90 days

C/FZ/-/-/–;                    service multiple-entry visa for up to 90 days

C/VG/82/-/–;            visa allowing entry for the purpose of filing an application for permission to stay in order to seek temporary protection

C/VK/81/-/–;              single-entry visa for up to 90 days – declaration of the intention to apply for asylum

C/VK/83/-/–;              single-entry visa for up to 90 days – for the purpose of following the asylum procedure 

D/VC/00/-/–;               multiple-entry visa for over 90 days – healthcare

D/VC/02/-/–;               multiple-entry visa for over 90 days – cultural activities

D/VC/04/-/–;              multiple-entry visa for over 90 days – invitation

D/VC/05/-/–;              multiple-entry visa for over 90 days – official, political purposes

D/VC/06/-/–;             multiple-entry visa for over 90 days – business – self employment

D/VC/07/-/–;           multiple-entry visa for over 90 days – sports activities

D/VC/16/-/–,           multiple-entry visa for over 90 days – Occupation (alien is a partner of business company or association member – participant in

D/VC/17/-/–,         multiple-entry visa for over 90 days – Family purpose – applicant is a husband (including unmarried husband – unmarried wife,  registered partner – the same gender)

D/VC/18/-/–,       multiple-entry visa for over 90 days – Family purpose – applicant is a child born in the territory of the Czech Republic

D/VC/19/-/–,              multiple-entry visa for over 90 days – Family purpose – applicant is a child born outside of the Czech Republic

D/VC/20/-/–,           multiple-entry visa for over 90 days – Family purpose – applicant is another family member (e.g. parent, grandparent)

D/VC/23/-/-,            multiple-entry visa for over 90 days – Study – Council Regulation 2004/114/ES

D/VC/24/-/–;                  multiple-entry visa for over 90 days – Study (training, scholarship) other than Council Regulation 2004/114/ES

D/VC/27/-/–;             multiple-entry visa for over 90 days – employment

D/VC/36/-/–,          multiple-entry visa for over 90 days – Executive manager – participation on corporate body occurred according to

Act No 513/1991 Coll.

D/VC/37/WH/–;          multiple-entry visa for over 90 days – employment – working holiday of a national of New Zealand based on the Agreement on  working holiday program between the government of the Czech republic and the government of New Zealand, signed in Prague  on 11 October 2004

D/VC/94/WS/–;        multiple-entry visa for over 90 days – employment – working stay of a national of Canada based on the Agreement between the Czech Republic and Canada on facilitating the temporary working stays of youth, signed in Ottawa on 23 November 2006

D/VS/84/-/–;              multiple-entry visa for over 90 days for stay on sufferance under Section 78b of Act No 325/1999 Coll., on asylum

D/VS/85/-/–;              multiple-entry visa for over 90 days – Toleration stay according to Section 58a Act No 221/2003 Coll., on temporary protection

  D/VS/91/-/–,            multiple-entry visa for over 90 days – Toleration stay according to Act No. 326/1999 Coll.

D/VC/99/-/–;            multiple-entry visa for over 90 days – other

D/VR/-/-/–;             multiple-entry visa for over 90 days in order to take possession of a residence permit

D/UD/-/-/–;            diplomatic single-entry visa for over 90 days for the purpose of applying for a long-term residence permit granted by   the Ministry of Foreign Affairs

D/UZ/-/-/–;             service single-entry visa for over 90 days for the purpose of applying for a long-term residence permit granted by the Ministry of    Foreign Affairs

R/VV/-/-/–;             Departure Order (this is not a visa)

Long-term residence permit codes by purpose of stay:

L/NE/VC/00/–;          Long-Term Residence permit – third country national – healthcare

L/NE/VC/02/–;          Long-Term Residence permit – third country national – cultural activities

L/NE/VC/04/–;          Long-Term Residence permit – third country national – invitation

L/NE/VC/05/–;          Long-Term Residence permit – third-country national – official, political purpose

L/NE/VC/06/–;         Long-Term Residence permit– third-country national – business activities – self-employment

L/NE/VC/07/–;        Long-Term Residence permit – third country national – sports activities

L/NE/VC/16/–;       Long-Term Residence permit– third-country national – employment – (the foreigner is a partner of a business company or  association member – participant in corporate body and has a work permit in corporate body in accordance with Section 89   of the Act 435/2004 Coll, on employment)

L/NE/VC/17/–;      Long-Term Residence permit – third country national – Family – applicant is husband (incl. partner and registered partner of the  same gender)

L/NE/VC/18/–;      Long-Term Residence permit – third country national – Family –  applicant is a child born in the territory of the Czech Republic

L/NE/VC/19/–;      Long-Term Residence permit – third country national – Family –  applicant is a child born outside of the Czech Republic

L/NE/VC/20/–;    Long-Term Residence permit third country national – Family –  applicant is another family member (e.g. parent, grandparent)

L/NE/VC/23/–;     Long-Term Residence permit – third country national – Study – Council Regulation No. 2004/114/EC   

L/NE/VC/24/–;    Long-Term Residence permit – third country national – Study (training, scholarship) another than Council Regulation  No. 2004/114/EC

L/NE/VC/25/–;     Long-Term Residence permit– third country national – employment – research worker – Council Regulation 2005/71/ES   

L/NE/VC/27/–;     Long-Term Residence permit – third country national – employment

L/NE/VC/36/–;    Long-Term Residence permit – third country national – executive manager – participation in corporate body established in line with the Act No. 513/1991 Coll.

L/NE/VC/91/–;    Long-Term Residence permit – third country national – toleration stay according to the Act No. 326/1999 Coll.

L/NE/VC/99/–;    Long-Term Residence permit – third country national – other

L/ER/VC/00/–;     Long-Term Residence permit – third country national residing in another EU Member State – healthcare

L/ER/VC/02/–;     Long-Term Residence permit – third country national residing in another EU Member State – cultural activities

L/ER/VC/04/–;     Long-Term Residence permit – third country national residing in another EU Member State – invitation

L/ER/VC/05/–;     Long-Term Residence permit– third country national residing in another EU Member State – official, political purposes

L/ER/VC/06/–;     Long-Term Residence permit – third country national residing in another EU Member State – business activity, self employment

L/ER/VC/07/–;    Long-Term Residence permit– third country national residing in another EU Member State – sports activities

L/ER/VC/16/–;    Long-Term Residence permit – third country national residing in another EU Member State – employment (the foreigner is a    – participant in corporate body and has a work permit in corporate body   according to Section 89 of Act no. 435/2004 Coll., on employment)

L/ER/VC/17/–;     Long-Term Residence permit – third country national residing in another EU Member State – Family – applicant is husband (incl. partner and registered partner of the same gender)

L/ER/VC/18/–;     Long-Term Residence permit – third country national residing in another EU Member State – Family –  applicant is a child born  in the territory of the Czech Republic

L/ER/VC/19/–;      Long-Term Residence permit – third country national residing in another EU Member State – Family –  applicant is a child born  outside of the Czech Republic

L/ER/VC/20/–;     Long-Term Residence permit – third country national residing in another EU Member State – Family –  applicant is another family

  member (e.g. parent, grandparent)

L/ER/VC/23/–;     Long-Term Residence permit – third country national – residing in another EU Member State – Study – Council

    Regulation 2004/114/EC   

L/ER/VC/24/–;     Long-Term Residence permit – third country national residing in another EU Member State – Study (training, scholarship)  other than Council Regulation 2004/114/EC

L/ER/VC/25/–;      Long-Term Residence permit – third country national residing in another EU Member State – employment/research worker –   Council Regulation 2005/71/EC

L/ER/VC/27/–;      Long-Term Residence permit– third country national residing in another EU Member State – employment

L/ER/VC/36/–;      Long-Term Residence permit – third country national – residing in another EU Member State – executive manager – participation on corporate body established in line with the Act No. 513/1991 Coll.

L/ER/VC/91/–;      Long-Term Residence permit – third country national residing in another EU Member State – Toleration stay according   to Act No. 326/1999 Coll.,

L/ER/VC/99/–;     Long-Term Residence permit – third-country national residing in another EU Member State – other

Getting Czech tax residency certificate


A certificate of your Czech tax residency can help you avoid double taxation (having your income taxed twice). 

The application for the proof of Czech tax residency should be lodged at your local tax office in the Czech Republic. 

To be eligible, you must come from a country with which the Czech Republic has concluded a bilateral international double tax avoidance treaty*. Individuals and legal entities may both apply for the Czech tax residency certificate.

How to apply for Czech tax residency certificate :

You can apply for a confirmation of your Czech tax residency in three ways:

  1. In-person, 
  2. Through your databox or
  3. Through a representative who can do it for you based on a power of attorney.

Conditions 

– Your application must be written in the Czech language.

– The proof of the Czech tax residency may be issued for the date of your application form or another past date. It cannot be issued for a future date.

– The confirmation can also be issued for a completed or partial tax period in the past. In the second case, you must specify the start and ending date, e.g. from 1.1.2020 to 1.4.2020.

– You can apply using an application form from another country if that country only accepts applications that use its own form. The original form should be provided with a Czech translation.

Information needed to prove your Czech tax residency 

Information about the source of your income in the Czech Republic: e.g. employment, a business, property rental, retirement funds 

-Personal details: marital status, details of any children and their residence in the Czech Republic

-Proof of Czech residency, e.g. your residency permit or confirmation of your address (rent contract, property deed)

– Work contract, trade licence or other proof you have binding ties to the Czech Republic, e.g. the residency permit of your spouse/child or their rent contract 

Important!

The country requiring the confirmation of your Czech tax residency might require the document to be super legalized or apostilled.

Czech tax residency assistance in Prague

Want to avoid the hassles of arranging your Czech tax residency certificate on your own in Prague?

PraguExpats can take care of the entire process for you using power of attorney. Get in touch with us to find out more. 

What are the super legalization and the apostille?

Super legalization

When applying for a Czech visa you may need to provide different types of documents ( Birth certificate, marriage certificate, criminal records, university diploma )…  If these documents are issued by a country with which the Czech Republic does not have an agreement, then it should be officially translated to Czech language and super legalized.

Super legalization of foreign documents is authorized by the Czech embassy where the documents are issued, while documents issued in the Czech Republic are authorized by the Czech ministry of foreign affairs.

Apostille

In order to be accepted by the given authority, some documents have to be apostilled. Apostille of the documents issued in the Czech republic are authorized by the Czech Ministry of Justice and  Apostille of foreign documents are authorized by a local Ministry of foreign affairs.

Apart from getting the apostille and super legalization all documents submitted when applying for long-term (over 90 days) visas must be in Czech or accompanied by an official translation to the Czech language.

Updates for freelancers/self-employed people during the Covid-19 crisis

financial aid for czech trade holders

We never send newsletters and post only the most important facts, updates and advice on visas, residency and taxes on our Facebook page. Follow us on Facebook to keep up-to-date with the latest info.

Czech parliament has confirmed that freelancers (živno-holders) affected by the government’s coronavirus measures qualify for a one-time payment of up to 25,000 CZK. Complete instructions can be found here

Freelancers (holders of a trade licence) including foreigners may apply for financial aid of 15,000 CZK per month if their business was affected by the Czech government’s coronavirus measures.

The financial aid is for self-employed persons whose workplace was closed or who were unable to work because of the state of emergency.

Some examples: You have a barber shop and have had to close the shop so are unable to run your business. 

You teach and have had to stop work because the schools you cooperate with are shut.

Conditions

  • Your trade licence must be the main source of your income. You cannot apply if you’re a full-time employee and your trade licence is your side gig.
  • You’re not eligible for this aid if you’re already receiving other social and financial support from the government.

Where to apply?

At the Tax Office in the district of Prague where you officially reside.

When to apply?

More details about the relief package will be available when Czech Parliament confirms the decision on 7 April 2020.

PraguExpats will update you as information is released.

We are here to help if you need support with your financial aid application.

Contact us for more advice – and stay healthy and safe!

The Czech government has waived the minimum monthly prepayments for health insurance (2,544 CZK) and social security (2,352 CZK) for all Czech trade licence holders including foreigners from March to August 2020

There is no need to make any prepayments for these months If you paid only the minimum amounts up to now.

If you’ve been paying more than the monthly minimums, we recommend you pay the difference each month. This will save you from having to make a large payment at the end of the year.

There’s no need to submit any application.

Your public health insurance will remain active and you’ill get the same treatment you were getting before!

Next steps

  1. If you haven’t made your social and health insurance prepayments this month (March), only pay for health insurance. This takes care of your payment for February. (Social prepayments are for the current month and health insurance prepayments are for the previous one.)
  2. Stop all social and health insurance prepayments if you only pay the minimum amounts.
  3. Restart your prepayment for social in September 2020.
  4. Restart your prepayment for health insurance in October 2020.

In these situations, it’s important that you de-activate your trade licence and inform all the relevant authorities. This will prevent any misunderstandings and unexpected debts to the health insurance and social security offices. More info is here

Who can apply for a Czech long term visa in the EU?

Who can apply for Czech visa in EU?

Generally, all nationalities who want to apply for a Czech visa must apply in their home country or in-country which issued their current travel document or in a state in which they have a long-term or permanent residency, so it is not possible to apply for long term visa in the Czech Republic.

However, there are some exceptions. Citizens from the list below can also make an appointment and apply for a Czech visa in the Czech embassy in any EU country for example – Vienna, Berlin, Budapest, Brussels, Madrid.. (  Law 429/2010 Sb)

  1. Albania
  2. Andorra
  3. Antigua and Barbuda
  4. Argentina
  5. Australia
  6. Bahamas
  7. Barbados
  8. Bosnia and Herzegovina
  9. Brazil
  10. Brunei
  11. Saint Kitts and Nevis
  12. Guatemala
  13. Honduras
  14. Chile
  15. Israel
  16. Japan
  17. Canada
  18. Korea
  19. Costa Rica
  20. Malaysia
  21. Mauritius
  22. Monaco
  23. Nicaragua
  24. New Zealand
  25. North Macedonia
  26. Panama
  27. Paraguay
  28. Montenegro
  29. El Salvador
  30. San Marino
  31. Seychelles
  32. Singapore
  33. The United States of America
  34. Mexico
  35. Serbia
  36. Vatican city
  37. Venezuela
  38. Taiwan
  39. Uruguay
  40. Hongkong
  41. Macao

How to book your Czech visa appointment? If you are a citizen of a country that is on the list, you can choose the closest embassy and contact them by email and make the appointment.

In whichever country you apply for a visa, you should always have all the documents translated to the Czech language and some documents should also be super legalized or have an apostille.

After the visa approval, you should collect it at the same embassy where you applied.

How to cancel a Czech trade licence?

Trade licence cancelation steps

Are you a Czech trade licence (živno) holder in the Czech republic who’s returned to your home country? Or have you found employment and plan to stop freelance work? In these situations, it’s important that you de-activate your trade licence and inform all the relevant authorities. This will prevent any misunderstandings and unexpected debts to the health insurance and social security offices. 

You can’t backdate the de-activation of your trade licence. The change takes effect from the notification date. So, if you don’t need your trade licence anymore but keep it active, you’ll continue to incur social security and health insurance fees every month. These debts can really add up. That’s why it’s so crucial that you de-activate your trade licence on time and de-register for social security and health insurance payments. 

Where and how to cancel or suspend your Czech trade licence

Trade licence office

As a first step, you’ll want to visit the trade licence office (živnostenský úřad) and let them know you’re not working as a freelancer anymore. You can do this at any branch. After you notify them, you’ll receive a confirmation letter.

The office will give you two options for de-activating your živno: suspension (pausing) and cancellation. 

If you’re leaving the country but think you might return some time and need a trade licence, then you should consider suspending your trade licence instead of cancelling it. It’s not possible to pause your živno indefinitely. You must give a recommencement date, but this could be any time in the future—even 30 years from now. When you want to restart freelance work, simply re-activate the trade licence. There’s no need to redo your registration. 

If you’d rather wind up your trade licence permanently, you should choose the cancellation option.

When you visit the trade licence office, be sure to bring at least your passport. If you can’t or would prefer not to go in person, you may appoint someone else to do so based on a power of attorney.

How to cancel or suspend Czech živno-related payments

The staff at some trade licence offices may offer to de-register you with social security and health insurance authorities. Other offices will ask you to contact these authorities yourself. If you’re in the second situation, you should follow the steps below.

Social security office

To cancel or suspend social security charges, you’ll need to fill out this form. You can submit the signed form in person at your local social security office or send it in by registered mail. Contact details for social security offices can be found here.

If you come in person, please bring your passport and confirmation letter from the trade licence office. If using registered mail, include a copy of the confirmation letter.

Public health insurance 

If your health insurance is with VZP, then you’ll need to inform the company within 8 business days of canceling or suspending your trade licence. 

You can do this by filling in this form and submitting it to a VZP office in person or by registered mail. A list of VZP branches can be found here.

If you have OZP health cover, you can inform the company by email. The email address is [email protected]

If you have private health insurance, no actions are needed.

Tax office 

Finally, you must inform the tax office about your changed status.

To do this, just complete this form and drop it at the PODATELNA window of your local tax office. Alternatively, you can send it in by registered mail. 

Important!

Remember that you must file a tax return for the year in which you cancelled or suspended your živno. Even if you only did freelance work for 2 months of the year, you still have to submit a return. 

Earnings from last year should be reported this year while this year’s income should be reported by March 31 of next year. There’s no need to file a tax return if your gross annual income was less than 6,000 CZK. 

Help with trade licence cancellation or suspension in Prague 


Whether you’ve left the country or are still in Prague and need help with de-activating your trade licence and stopping related payments, PraguExpats has you covered.

We can complete the entire process for you using a special power of attorney.

Talk to us about how we can help with your situation.




What’s involved in setting up a Czech trade licence?

A Czech trade licence allows you to work as a freelancer (self-employed person) in the Czech Republic. As a sole trader with a trade licence, you’ll have a registered Czech tax identification number and enjoy the same rights as a company registered in the country.

steps of trade licence registration

Types of Czech trade licences

  1. General trade licences

Eighty common business activities can be performed with a trade licence.  These activities don’t necessarily require any specialist education or university degrees.  Common activities among our clients include graphic design, IT, foreign language teaching, sales, photography services, event organising, and general consulting. You may perform all eighty activities with a single trade licence and tax number.

   2. Professional trade licences 

Professional trade licences are regulated by the government. If you want to obtain a professional trade licence, you’ll need to get an official permit. Taxi drivers, for example, need a certificate confirming that they hold the appropriate qualifications.

Requirements

To be eligible for a Czech trade licence, you must be at least 18 years old. You’ll also need to submit different supporting documents depending on your status:  

  1. EU citizens

You’ll need to present:

  1. Your passport or national ID card
  2. Your temporary residence certificate or rental contract in the Czech Republic*
  3. Proof of your Czech business address **

2.Non-EU citizens with a long-term residence permit (long-term visa for 90+ days)

You’ll need to present:

  1. Your passport
  2. Your long-term residence permit
  3. Criminal clearance report from your country of origin (affidavit for US citizens) 
  4. Proof of your Czech business address**

3. Non-EU citizens with permanent residency or a “partner visa” (temporary residence as an EU citizen’s family member)

You’ll need to present:

  1. Passport
  2. Your residence permit
  3. Proof of your Czech business address**

*If you don’t have a residence certificate,  you can use your rental contract to prove your residency. This contract must be more than 6 months old.

**Your home address in the Czech Republic can double as your business address. To set this up, your landlord will need to sign this form.  If this isn’t possible, we can arrange a virtual business address for you.

Income tax

Czech income tax for trade licence holders is very reasonable. As a freelancer, you have different tax options. Income tax is 15% of your net income, and a 24,840 CZK tax deduction applies.

The “60/40” taxation method is used most often. If you adopt this approach, there’s no need to keep any payment receipts or invoices from your expenses.                               

Instead, a fixed 60% of your total gross income is written off as expenses while the remaining 40% is your income. 

So, how much tax do you pay?

To see how this works in practice, let’s look at an example. Say your total gross income for last year was 300,000 CZK, then 60% of this figure (180,000 CZK) will be treated as fixed expenses.

The remaining 120,000 CZK will be your net income and taxed at a 15% rate. This brings the tax to 18,000 CZK. After the automatic deduction of 24,840 CZK, however, your final tax bill for the year comes to 0 CZK!

In other words, you pay no tax. This method is convenient and generally the best solution for EU citizens and their family members (partner visa holders).

Taxes are due by March 31 every following year.

Important information

1-  You can only use the 60/40 method if your annual income is less than 2 million CZK.

2-  As soon as your gross income exceeds 1 million, you must register for VAT. Your accountant will be able to help with this.

3-  For the situation and calculation which was used above, freelancer visa holders should use the method tax from the full amount for avoiding visa renewal rejections due to insufficient funds.
Please check more information about income proof calculation of MOI offices here.

Public health insurance

Once your trade licence is active, you must register for public health insurance. In 2020, the minimum prepayment for trade licence holders is 2 352 CZK each month.  

Which trade licenceholders must register for public health insurance?

  1. EU citizens 
  2. Expats with permanent residency in the Czech Republic
  3. Citizens of the US and some countries

People who don’t fall into any of these categories must take out private health insurance.

The public health is paid monthly for previous month

Social security

After activating your trade licence, you must also register with the social security office..

In 2020, the minimum prepayment for trade licence holders is 2 544 CZK each month. 

Social security is paid monthly for current month

Czech Tax identification number

ICO is your Czech business ID number. Each Czech company and trade licence holder has a unique business ID number.

DIC is your Czech tax ID number. This number is issued by the tax office after you register. It usually consists of the prefix CZ + your ICO number. 

Having a DIC doesn’t mean you’re registered as a full or light VAT payer. If you plan to invoice EU companies outside the Czech Republic, then you should register as a light VAT payer. This registration must take place within 15 days of the receipt of your first payment! 


Trade licence as a “side job” for full-time employees

If you have a full-time job and want to earn some side income outside your employment, you should apply for a trade licence.

Since your social tax and health insurance payments are made by your employer, you won’t need to make any social tax and health insurance payments the first year. But you should request an annual statement from your employer to see if you need to settle the balance. This will depend on your main income from your employment.

If your Czech trade licence as a side business is the same activity as your main job, you should seek permission from your employer. Check your employment contract and discuss the details with your employer before applying for a trade licence

Want to avoid the hassle of setting up a Czech trade licence on your own in Prague?

PraguExpats can handle the entire process for you. Complete registration takes 24 hours!

If you’re an EU citizen who’s interested in getting a trade licence, check out our Prague Trade Licence Set-up package.



Does Czech commercial health insurance cover costs related to the coronavirus threat?

As brokers of private health insurance, we’ve been receiving many emails about whether different policies cover medical costs connected with the coronavirus threat, We decided to go through all the policies on the market and contact these companies to determine whether all expats with Czech health insurance can count on complete support from their insurer.

Public health insurance holders 

If you have Czech public health insurance, then you don’t need to worry about your coverage. All expenses for medical treatment including those related to the Covid-19 crisis will be covered.


Private health insurance

Unfortunately, not all expats in the Czech Republic qualify for public health insurance under current Czech law. What if you have private health insurance? Will it cover expenses related to a potential Covid-19 infection?

We contacted all the private health insurance companies but only received official replies from the ones whom we represent. 

PVZP MEDICAL INSURANCE

If you arranged your health insurance from PVZP through us or independently, then please see this official statement from the company in English

AXA MEDICAL INSURANCE

If you arranged your health insurance from AXA through us or independently, please read the company’s official English-language statement

PVZP is a private health insurance product from VZP that is supported by AXA.  AXA also processes PVZP claims so if you have any health problems, please go ahead and contact either company. You’ll find the contact details on your insurance card. This general information about how to contact the AXA applies whether you have AXA or PVZP insurance.

Other private insurance companies

We only represent AXA and PVZP and did not any official information from any other private insurer. If your policy is with one of these companies, then please persist in contacting them until you receive clarification. The company’s number and your insurance number should be printed on your insurance card.