Parental Leave Benefits and Maternal Bonuses

If you are pregnant or have a newborn, there’s good news on the horizon. Maternity support in the Czech Republic is about to get a serious adjustment, one that will make many mothers, and fathers, very happy.  

By the year 2020, parental benefits are set to rise from 220,000 CZK to 300,000 CZK. That’s right around the corner. So now is an ideal time to start planning children if that’s part of your life plan.

If you’re wondering why the sudden change in maternity bonuses, the answer is simple. For almost a decade, the payout hasn’t been increased or addressed. Therefore, the readjustment is long overdue, indeed. Since the economy of the Czech Republic has fallen recently and prices, wages, and revenues of the state budget have risen, the maternal bonus reconciliation comes at the right time. It’s only fair to make life a little easier for young mothers and fathers.

Foreigners can benefit from this maternal bonus, too. 90% of foreigners don’t know about government financial support for newborns. These maternal bonuses can be received after 1 year of living and paying taxes in the Czech Republic. Maternal bonuses are a standard procedure for all Czech citizens. Not sure how to apply? Talk to a company who specializes in this service.

Currently, mothers in the Czech Republic are entitled to 20 weeks of postnatal maternity support. However, a shift has been made in parental leave. And it’s not just the mother’s who are getting time off. The new seven-day entitlement, which allows fathers to claim up to 70% of their salary while on leave, is intended to encourage the father’s early involvement in caring for young children. This shows just how forward thinking the Czech Republic is. By giving incentive to families, a new paradigm is being created. Involving fathers in the child-rearing process builds a stronger family unit. It also removes a lot of burden on the mother’s side.

After all, for centuries, it’s been the mother who typically assumes the majority the responsibility in raising a child. It’s about time that we start changing the way we’re doing things. The Czech Republic is taking big steps to make that possible.
For those who already have children and receive maternal support, the increase will happen automatically. Those who have exhausted their maternal allowance must reapply. Take notice, the child must be under 4 years old at the time of applying.

PraguExpats has the youngest client, her name is Rebecca and she was born today!

Rebecca’s father is Russian citizens who obtained permanent residency last year and her mother is a US citizen who was teaching English under trade license as a business visa holder.
So, her future family reunification visa status should fall under one of the parent’s residency status. Her visa status will not depend on the parent’s citizenship or parental legal rights.

The most convenient option in this situation will be attaching her legal status to her father’s permanent residency. She will get permanent residency and she doesn’t need to extend her long term residency under mother’s residency every 2 years. And she will have public health insurance from VZP free of charge until she graduates from her last year at university.

Each newborn’s health care is covered by the mother’s health insurance until they leave the hospital. It is important to arrange health insurance as soon as possible once you leave the hospital. We insured Rebecca’s mother for pregnancy health insurance which means before they leave the hospital she is insured.

Let us explain step by step the procedure :



Step 1.
Arrange health insurance for a newborn if none of the parents has a permanent residency or EU citizen who is registered with public health insurance. This can be done with a health insurance provider in person.


Step 2.
Collect the birth certificate from the local registration office. It must be official and not a photocopy.

Step 3.
Apply for Czech family reunification residency at the immigration office. Be sure to ask what is the maximum deadline for attaching your child’s passport. According to law, the deadline can be 180 days.

Step 4.
Skip this if you don’t have permanent residency.
With confirmation from the immigration office, register for health insurance, and get a temporary public health insurance card. Once you attach the permanent residency ID of the baby, you will get the permanent health insurance.

Step 5.
Apply for a baby’s passport and provide it to the immigration office before the deadline and get an appointment for the biometric procedure.

Step 6
Visit the immigration office at appointment date arranged through the  biometric card.

If both parents have been living in the Czech Republic at least 1 year before the baby was born, they have a chance getting financial support which was 220 000 CZK before January 1, 2019. For parents whose babies were born after January 1, 2019, 300 000 CZK is given.

The flu season has begun in the Czech Republic.

The number of respiratory diseases cases has already risen to epidemic proportions. There are 1,715 cases per 100,000 patients. Epidemic “status” is given at 1500 cases. Last Friday the country’s Chief Hygienist, Eva Gottvald, announced that in the past week, the number of patients rose almost one fifth. The highest mortality rate from the flu was reported from the Plzeňský, Liberecký, Jihomoravský and Moravskoslezský regions.

Last season, in 2017/2018, with a rampant severe flu, more than 600 people deaths in the hospital country-wide, about 260 were influenza related. Most of the Major hospitals in the Czech Republic are closed to visitors whose family members are staying in hospital. If you are using public transportation it is highly recommended to wash your hands with soap and warm after arriving home or before you consuming food.

Czech Partner visa and Relationship statistics

temporary residency EU

Some people call it the “Czech Partner visa” or “relationship visa”, officially it is called the temporary residency for EU family member. At PragueExpats we have approved our 500th filing last week and have interesting statistics to share on the relationships between EU members and other nationalities. So, most common relationships between nationalities according to the statistics of our last 500 clients are:

MenWomen  %
USCzech22%
FrenchUS15%
CzechPhilippines12%
BritishRussian7%
GermanBrasil3%
IndianCzech1%
BritishUS1%
Others 39%

7 biggest and fatal mistakes of expats which shouldn’t happen

1. Registration with Czech foreign policy.

Every expat (person with citizenship outside of Czech Republic) should register with foreign policy within 3 days of arrival and EU member expats within 30 days

2. Overstaying of US citizens in the EU before visa approval in the Czech embassy.

Czech embassy may invite you for an interview serval months after you apply for your long term visa. Overstaying will be the main reason for your visa application rejection.

3. Fake accommodation proof.

The person should be registered at the apartment or house where they live and it is also the legal responsibility of the home’s owner to provide the accommodation proof. MOI offices and embassies have a long list of fake accommodation providers which can be the main reason for visa approval or renewal rejection.

4.Insufficient income funds.

Make sure your income is sufficient for your visa renewal. There is the official calculation of income by MIO.

5. Extend your trade license BEFORE it expires.

Your trade license always expires with your residency permit or bridging visas and you should always be extended with your new residency or new bridge visa sticker, otherwise, It WILL be canceled and you will have to go through the new trade license registration process again and it may negatively affect your visa renewal.

6. Extend your visa on time.

The Czech visa renewal deadlines are very strict and if you don’t apply for visa renewal before the current one expires, you lose the chance to extend it.

 7.Bad communication with authorities.

Make sure you have your full name on your postal box. In the case of misunderstandings and missing of some documents in your visa renewal process, the immigration office sends you a letter with a proposal. They may ask to attach some missing documents with a deadline date. If you don’t have your name on the postal box, you don’t receive any letter and you may not know about the cancellation of your visa process.

 

Tax refund or originally discount for kids for families with children

The Czech social and financial tax system is always fair with the residents who are fair with the system! Whether you are a foreigner of the developing country with long term or permanent residency, EU citizen or you are simply a Czech citizen, the social and maternity support doesn’t  have any discrimination about your legal status if your taxes have been officially paid and the rules are the same for all people who are officially living in a good status in the Czech Republic.

You can be an employee of the company where you are working, working as self-employed under trade license or a CEO of your own company who is receiving a salary, you can get a tax refund and it is not taxable and you don’t need to pay any tax from a tax refund for children!

Amount Calculation for past annual reporting year 2018:

1 child in the  family  15 204 CZK

2 children in the family 19 404 CZK and

3  or more children in the family  24 204 CZK

 

*Only one of the parents can claim the bonus

 

What you should attach to the report:

Copy of  birth certificate

Copy of Health Insurance card

Confirmation from kindergarten or school(for kids over 3 years old)

Affidavit of another parent that he/she agrees that father/mother can apply for a tax refund

Bank account information where the financial tax office should transfer the tax refund.

 

There is an age restriction per child and Maximum age of a child to be claimed who is a student and 26 years old.

 

You should remind your tax advisor about the bonuses if you are a trade license holder or contact your financial department of your employer if you working for a company with offices here in the Czech Republic.

Why are accounting services for the annual Czech tax report so expensive?

Dear Prague Expats,

We have types of EU clients who don’t need to have a Czech visa or other nationalities who should have a visa and renew. However, ALL trade license holders should declare/apply Czech annual tax report for the past year. We are going to explain why your annual tax report may cost so much and how to avoid it this tax year.

Information for all trade license holders: Recording the transactions is one of the major parts of the annual tax report! The accounting service fees will depend on your payment transactions; Recording each transaction on bookkeeping software or downloading your bank transactions.

Whether you withdraw cash from ATMs, buy clothes online, pay for food or Uber Czech Republic charges you from your card for your trip,  charges the Netflix or you use payment card anywhere. So accountants charge for recording each transaction. And recording each transaction costs between 20 -35 CZK in Prague. So, if you are using your personal bank account as a business you may have thousands of transactions for the previous year.

 

Our Prague Expats tip: Arrange a second bank account solely for business purposes. Where you accept payments for your invoices, pay social taxes and health insurance and finally transfer your salary to your personal bank account. Most of the banks are offering bank accounts without any services fee. Alternatively, you can have another bank account at Fio Bank, Air Bank, Equa bank, Mbank without any service fee and save thousands of CZK for accounting services.

The year 2019 is already started and we have new clients for the business visa under trade license renewals. And as income proof for Czech residence renewal, the MOI-Czech immigration offices will require their annual tax reports for 2018. We have even identified one of our clients to hit the records jackpot and the winner of the year with 9000 payment card transactions in 2018! We hope, her accountant will negotiate with her and she gets some discount 🙂

New Year ‘s Fireworks Prague 2019

 fireworks

The theme of the fireworks show is dedicated to the 30th anniversary of the Velvet Revolution.

and will be accompanied by musical accompaniment. The Show will take 10 minutes and 42 seconds

WHEN: 1. 1. 2019 at 6 pm

WHERE: Letenské sady, Prague 7

OUR TIP:  They are best viewed from Dvořákovo nábřeží, Pařížská Street, Čechův most, Mánesův most, Štefánikův most Petřín hill, Vítkov hill or from Riegrovy Sady.

Proof of funds for Czech Business visa renewal

Dear PraguExpats,

If you hope to extend your business visa or long-term residency in 2019, make sure that you don’t forget about any income invoicing for your annual tax report 2018.

Your proof of income will be your annual tax report for 2018 for your visa extensions in 2019!

The Immigration office has a fixed income calculation. If you are single, your final monthly income should be at least 18 000 CZK according to your annual tax report for 2018.

 

For family couples or families with children, clean income calculations are as follows

 

1.The amount of the subsistence minimum

According to Government Regulation No. 409/2011 Coll. , the amount of the subsistence minimum for an individual is 3 410 CZK.

 

The amount of the subsistence minimum of a person who is determined to be first in order is CZK 3140 a month.

The monthly amount of the subsistence minimum of a person who is determined to be second in order is

 

CZK 2 830 for a person over 15 years, who is not a dependent child,

CZK 2 450 for a dependent child from 15 to 26 years,

CZK 2 140 for a dependent child from 6 to 15 years

CZK 1 740 for a dependent child under 6 years.

 

2.Costs for housing * updated January 1st, 2019

 

The highest amount of normative costs for housing since 1 January 2017 according to Government Regulation No. 449/2016 Coll. is:

 

CZK 8 233 for one person

CZK 11 444  for two people in a family

CZK 15 288 for three people in a family

CZK 18 805 for four and more people in a family
And you should add 2189 CZK for social tax monthly and VZP Health insurance 2024 CZK ( if you are US citizen) monthly.

 

For example; You are a family of US citizens living in the Czech Republic, you, your spouse and 4 years old child. Your clean income should be as follows:

 

Subsistence minimum 7 710 CZK + Costs for housing 15 116 CZK= 22 816 CZK

And if it is your first visa renewal you should add 4378 CZK social tax (in case both parents are business visa holders under trade license) and 4048 health insurance (in case both parents are business visa holders under trade license).

So the amount 31 242 CZK is your family’s monthly income according to immigration office calculation. And amount 31 242 CZK x 12 months= 374 904 this should be your minimum annual income after income taxes for 2018.

 

The Czech trade license holders can choose various types of tax options. Income tax is 15% from net income and there is 24 840 CZK tax discount.
Method 60/40 is the most common. The collection of payment receipts or invoices from  expenses is not necessary
It means a fixed  60% cost allowance and 40% income. For example, if total gross income for last year was 300 000 CZK, then 300 000 – 60% cost allowance( fixed expenses) = 120 000 clean income. 15% tax will be paid from 120 000 which means 120 000 -15%= 18 000 (tax amount)- 24 840 (tax discount) = 0 CZK (final tax amount).

In this example, taxes will not be paid. This method is convenient and the best solution for EU citizens and EU family members(partner visa)
We don’t recommend this method for other nationalities who need to renew their visas or residency permits in the future because of income proof is required if they don’t have at least 500 000 CZK.  For the situation and calculation which was used above, other nationalities should use the method tax from the full amount for avoiding visa renewal rejections due to insufficient funds.

 

DIY Bridging visa and Trade license renewal without speaking Czech

PraguExpats provides complex services at a fixed price since August 2018.
But We always having emails with questions from clients of other agencies or individuals who are extending their residency permits themselves

How to extend both the bridging visa and trade license?

Your trade license‘s expiration date is always according to your Czech residency or visa. You can have 2 years of long-term residency or 2 months bridging visa, your trade license will expire with your bridging visa or residency permit.

How to extend both of them without speaking any word of Czech?

1. Make an appointment at the immigration office online for at least 2 months earlier than your bridging visa or residency permit expiration date.
You will avoid waiting and wasting all day without an appointment. Online appointment is in English, convenient and you can register yourself here

2. Visit the immigration office at least 20 minutes earlier of your appointment time and get your ticket/number. Bridging visa procedure is free of charge. You should try to get your bridging visa for the maximum period for avoiding his extension after 1 month.

Your Czech is not good enough for asking for the maximum period? Here you can download the Note and show it at the window during the bridge visa procedure. Bridge visa procedure is free of charge.

3. Visit The Trade license office for your trade license renewal with your new bridging visa. If you are going to office close to Namesti Miru, you should get ticket/number Registrace.

You are not confident with your Czech?

Here you can download the Note and show it to Trade license officer.


4. Visit trade license office a week later for collecting your extended trade license.

Extend your trade license on time, otherwise, or else it will be canceled and you will have to go through with the first registration procedure you had on your initial visa when you first arrived in the Czech Republic. You may have an issue with your current or future Czech visa extensions.