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Czech Taxes in 2025 (for 2024) – Everything You Need to know!


If you are a freelancer in the Czech Republic, this article guides you through everything you need to know about your Czech Republic’s taxes. What are the deadlines, what to be cautious about and how it all works. Read on.

Who has to submit Czech Tax Return

Basically every freelancer whose trade license was active in 2024 (does not really matter how long it was active for or how much you earned) should submit a tax return to the Tax Office.

Along with the tax return, you should also submit a social security report (everyone) and health care report (only those who are actually using the public insurance under the trade license).

Those of you who are registered to the Flat Tax, do NOT have to submit Tax Returns, neither social or health care reports.

Until when you have to submit your Czech Tax Return

The Tax Return must be submitted to the Tax Office electronically (submitting it in paper form is penalized) before May 2, 2025. If you are using services of a Czech Tax Advisor (!not every accountant is a tax adviser!), you can technically submit the tax return until July 2, 2025. You can submit all the documents as early as Jan 1, 2025.

The general rule is submitting it as early as possible since it means accountants are more available and often also charge less. If you wait for the last moment, they might not even accept new clients, might charge you more and/or you risk missing the deadline.

If your taxes are tied to your residence permit application, submitting it early might also be very much recommended.

Should you use the 60/40 method? How much should your tax return show

You could find the technicalities above. Let’s now address one of the most important parts of doing Czech taxes – how are your taxes related to your residence permit status.

For some residence permit applications, proving how much money you have been making on monthly basis as a freelancer might be required. If it is required, the amounts shown in your tax return and social (and health) reports will determine the outcome of your application. If the numbers are high enough, your residence permit will most likely be approved. If they are not hight enough, the application will be very likely denied.

How high is “enough” though? Let’s dig deeper into that now!

The MOI calculates your net income like this:

Total declared income (tax base) – total tax paid – total social security paid – total health care paid (where applies) = your yearly gross income.

For example 500 000 – 40 000 – 65 000 – 50 000 = 345 000 CZK.

Your monthly net income = your total yearly income divided by the number of months your trade license was active in 2024.

So say 345 000/12 = 28 750 CZK.

Then they compare this number to the minimum income requirement which is calculated like this:

Substantial minimum + housing cost (your real rent or a general number) = your required monthly income.

For example 4 860 (substantial minimum for a single person) + 21 000 (your total rent including utilities) = 25 860 CZK.

25 860 CZK is lower than 28 750 CZK which means you’re good for the residence permit and your application will most likely be approved.

Now look at the same income, just using the 60/40 method. 

500 000 – 60% = 200 000 CZK.

200 000 – 0 (no tax) – 40 000 (social) – 35 000 (health) = 125 000 CZK (yearly net income).

125 000/12 = 10 416 CZK (monthly net income). .

10 416 CZK is way below the required 25 860 CZK which means that your residence permit application will be denied.

Even though you had the same total income in real life, the way you did your taxes either meant you were all good and got the residence permit, or that you got your residence permit denied and got deported. This is why doing your taxes correctly is so important.

Make sure your accountant understands this! If you do not have an accountant you can rely on, get in touch via the form below or on the right (or any general contact of ours) and we’ll be happy to connect you to the tax adviser we work with who is closely familiar with these calculations. And super friendly on top 🙂

Yours,

Move To Prague team

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