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.