Get Tax Residency in the Czech Republic and Pay Only 6% Tax
Yes, you’ve read that right – pay only 6% tax on income earned in the Czech Republic. All you need is an EU passport, and Pexpats can handle the rest. We arrange your business license and address, residency, and everything you need to get started as a Czech Tax Resident. You’ll skip all the hassles of bureaucracy, avoid double-taxation, and pay less taxes than in most EU countries. In fact, we’ve already saved freelancers and self-employed entrepreneurs upwards of 1 BILLION EURO by moving their business to the Czech Republic. Read on to learn how and receive a special offer from us to get you started.
So, now that we’ve got
your attention…
Let’s not waste any time here. If you’re an EU citizen and considering work and taxes in the Czech Republic, we’ve got you covered.
We know that for example, in Germany, entrepreneurs like ourselves are paying 45% in taxes.
In Portugal, there’s the 25/75 tax method, while in the Czech Republic it’s 60/40.
For us, taxation is fairly straightforward from one country to the next.
It’s when conducting work in multiple countries at once that taxes become more complicated.
At Pexpats, this is our area of expertise. Further, we know that you want to save on taxes with every invoice and wherever you work from.
You also need to ensure everything is above-board and legal come tax season, with no unexpected surprises after filing.
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Here’s everything we can do to assist
We’ll get right into it.
You have an EU passport and you’re thinking about becoming a tax-payer in the Czech Republic.
Right now, you might not even be in the country, but you’re considering the possibility of setting up shop here.
Maybe it’s to pay lower taxes than where you are now. Perhaps you just need to conduct business in the country.
Whatever it is, this is where Pexpats can help.
We take the worry out of establishing a Czech business license, obtaining a business address and residency, and registering as a tax resident.
As a Czech Tax Resident, you’ll avoid double-taxation from other EU countries, and pay only 6% tax – if handled properly. We’ll consult on exactly what you need based on your unique situation, and can even take care of nearly everything remotely.
We offer services from simple trade license registration to complete relocation and tax residency for entrepreneurs with ore complex businesses.
In fact, why don’t we tell you more about ourselves?
The team here at PexPats
Since 2013, we have assisted thousands of EU freelancers and self-employed to settle and save on Czech taxes.
Specifically, we can help you as a European freelancer living outside of the Czech Republic to file taxes accurately and efficiently.
Our team consists entirely of EU freelancers developing React applications, and we know all about keeping our freelancers legal in the CZ.
From fair trade business licensing to Czech invoicing and taxation, it’s part of our daily routine.
Now, let’s get back to why we’re all here – starting a business and filing taxes in the Czech Republic. How does it work? What do you need to know?
Filing Czech taxes as
an EU freelancer
Starting first, business providers in the Czech Republic have various tax options. We’ll look at the two most common below: fixed flat tax versus the 60/40 method.
Fixed flat tax method
200 EUR monthly
60/40 method - 60%
expense allowance
Freelancing on the fixed flat tax method
First, there’s the fixed flat tax method. In this, approximately 200 EUR per month covers your annual income tax, social security and health insurance contributions.
Apply some basic maths for example. Say we earn €40,000 annually. Of that, our total tax as well as health and social contributions amounts to €2,400 total.
Here, expenses amount to only 6% of gross income. This method is limited to holders of a Czech fair trade license who report income under approximately 40,000 EUR annually.
Also, when filing under a fixed flat tax, there’s no annual trip to the finance office to submit tax returns. Simply invoice clients and go about your business.
As long as you pay the flat tax rate and make under 1,000,000 CZK annually, you remain in good standing.
What about the 60/40 reporting method?
Now, let’s have a look at the most common reporting method. The 60/40 method represents a 60% cost allowance and 40% income.
Reporting taxes this way is convenient for freelancers in sales, IT roles, developers, and those with limited business expenses.
There’s no collecting invoices or receipts to submit expenses. You simply deduct 60% from your total gross income and pay taxes on the remaining 40%. That’s it.
Income tax in the Czech Republic is 15% of net income, with a 27,840 CZK (appx. 1,999 EUR) discount. If making over approximately 67,000 EUR (1,695,168 CZK), the income tax is 23% for any amount over the bracket.
Say you’ve earned 60,000 EUR. Deducting 60% amounts to 36,000 EUR in fixed expenses! You pay 15% tax on the remaining 24,000, equaling 3,600 EUR total. Talk about tax optimization, right?
Other advantages of the 60/40 method
Beyond the significant fixed expense allowance, there’s a wealth of other advantages that come with the 60/40 method. These include:
Health Insurance with EU Coverage
Exclusion from double taxation
Attractive and affordable cost of living
Comfort working from anywhere in the EU
Light taxes for freelance work in the CZ
Our special offer just for you
OK, so here’s the deal.
As long as you’re an EU passport holder, we can help with anything (and everything!) you need, and we have two ways we can get you started.
Normally, consultancy fees with our agency cost 150 EUR, but today we are offering our services completely for free.
We offer a FREE 40-min consultation based on your unique situation.
All you have to do is fill out a simple questionnaire so we can determine your needs.
We’ll use your answers to create your personalized plan which we’ll share in your consultation.
Whether it’s setting up a Virtual Business Address, a business license, temporary residence or something else, we’ll suggest the way forward.
BUT WAIT, there’s more!
Don’t know if you will have time to attend the booked consultation? No problem!
If you’re limited on time, we can create a 40-minute video detailing everything you will need and how we can help.
Watch the video on your own time anytime. Just get back to us after with any questions or when you’re ready to get started.
Again, all you need to do is take 5 minutes to fill out our questionnaire, and then book your online consultation or a personalised video presentation.
Our goal is to help others, like ourselves and you, to expand their business opportunities while staying legal in the process.
To date, we’ve already saved EU freelancers upwards of 1 BILLION EUR since 2013, and now you too can join in on the savings.
Simply sign up below and claim your free 40-minute consultancy session, whether online or via video presentation!