This article follows our video about the same topic (how to do your taxes right) and it should give you a way to check if your accountant is doing his/her job properly. This is specifically important for non-EU citizens who have their visa/residence permit (read more about the difference here) based on their income (i.e. freelance teachers, IT etc.).
The thing is that if you do not do your taxes right, it can lead to your residence permit being denied or canceled. Also, there are many of the accountants out there who have no idea how the taxes for expats should be done (even companies that have the word “expat” in their name).
The most confusing (and most crucial) usually is the amount you should declare in your tax return and social and health reports.
To make all confusion go away, this is how much you should be making (according to your tax return for 2020) as a single person living here or even as a family living here together.
IMPORTANT: The minimum required amounts have increased twice in 2022 (until July so maybe more increases will come), get in touch if you need to know the current amounts. Take the below article as an example of how the income is calculated, not the exact amount you should be showing.
Single person
The total monthly amount is calculated as a sum of these two parts:
Subsistence minimum – (theoretical amount of money which should get you through a month alive) – 3 410 CZK a month in 2020, 3 860 CZK a month in 2021.
Housing expenses – this is either your total monthly rent (in case the MOI knows the amount you are paying – i.e. if you provide a lease agreement as your proof of accommodation) or a general amount given by some governmental regulation (if you the MOI does not know how much you are paying – i.e. you use the proof of accommodation form instead of your lease) – 8 577 CZK a month in 2020, 8 775 CZK a month in 2021.
So let’s give you two examples for 2020:
- You used your lease agreement as your proof of accommodation and you are paying 15 000 CZK a month including everything. In this case, the total amount you will need to be officially making (please watch our video about this topic here: ) is 3 410 + 15 000 = 18 410 CZK a month.
- You used the proof of accommodation form as your proof of accommodation so the MOI does not know how much you are paying. In this case, the total amount you will need to be making is 3 410 + 8 775 = 12 185 CZK a month.
Families
If you are a family, the total amount is calculated in a similar way, with the difference that the amounts required for each person are counted together.
How were the numbers in 2020:
Subsistence minimum
The amount for a person who is determined to be first in order (i.e. the main applicant, the one who is making money and doing the tax return) is 3 140 CZK a month .
Then you add the amounts for all the people who are determined to be second in order:
-
- 2 830 CZK a month for a person over 15 years, who is not a dependent child,
- 2 450 CZK a month for a dependent child from 15 to 26 years,
- 2 140 CZK a month for a dependent child from 6 to 15 years
- 1 740 CZK a month for a dependent child under 6 years.
Housing expenses
- 11 929 CZK a month for two people in a family
- 15 953 CZK a month for three people in a family
- 19 617 CZK a month for four and more people in a family
- Or your real monthly rent.
How are the numbers for 2021:
Subsistence minimum
The amount for a person who is determined to be first in order (i.e. the main applicant, the one who is making money and doing the tax return) is 3 550 CZK a month .
Then you add the amounts for all the people who are determined to be second in order:
-
- 3 200 CZK a month for a person over 15 years, who is not a dependent child,
- 2 770 CZK a month for a dependent child from 15 to 26 years,
- 2 420 CZK a month for a dependent child from 6 to 15 years
- 1 970 CZK a month for a dependent child under 6 years.
Housing expenses
- 12 205 CZK a month for two people in a family
- 16 337 CZK a month for three people in a family
- 20 077 CZK a month for four and more people in a family
- Or your real monthly rent.
So, let’s give you an example for a family of 3 – husband (the main applicant), wife and a kid of 10 years of age.
The calculation goes as this: 3 550 (husband SM) + 3 200 (wife SM) + 2 420 (child SM) + 16 337 (housing cost for 3 people) = 25 507 CZK a month.
We hope this makes it a bit more clear for you and will help you do your Czech taxes right!
Contact us in case you have any questions or need any help!
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