In this article, we answer the most common questions about Czech Trade License we have collected from about 17 000 foreigners we have worked with since 2012. Get in touch if your question is not listed below and we’ll be happy to add it and/or provide the answer directly to you.
What is a Czech Trade License?
Czech Trade License is a document proving that you have been registered in the Czech Republic as a freelancer, self-employed person, and you are allowed to sell your products and/or services to clients.
Can I have clients from outside of the Czech Republic under the Czech Trade License?
Yes, Czech Trade License allows you to have clients from inside of the Czech Republic as well as from other countries. It just depends on who are your clients. If they are private people (i.e. you teach English online or sell products and deliver them to other countries), nothing else is generally needed from your side. If your clients are companies though, some additional steps might need to be taken from your side (i.e. getting registered as VAT identified person if your clients are VAT paying companies in some EU country).
What can I do under Czech Trade License?
You can work in over 100 different fields of business. There are generally two types of Czech Trade License – qualified and unqualified. Unqualified does not require any qualification/education/experience from your side to get the trade license. That means if you want to work in some of the unqualified trades, you do not need to do anything special to get the trade license.
On the other hand, if you want to work in some of the qualified trades (i.e. manicure, tattoos, hospitality), you must provide some additional documents proving your education and/or experience in that particular field. That might make getting the Czech Trade License way more complicated.
One last thing, the trade license is meant for positions of a freelancing nature, not positions like receptionist, waiter etc.
Can I employ people with Czech Trade License?
Yes, you can have employees even as a trade license holder, you do not have to set up an s.r.o. (llc) for that.
Can I get Czech Trade License as a foreigner?
Sure thing, 98% of our clients for the trade license are foreigners. How easy or complicated it will be for you to get a Czech Trade License as a foreigner depends on your nationality and your immigration status in the Czech Republic.
EU citizens can get the trade license under the same conditions as Czech citizens.
Non-EU citizens can only get an active trade license if they have a valid long-term visa (with validity of 91 days or more) or a residence permit.
You can not get an active trade license under your 90 days visa-free stay or under a short-term visa. If you need a trade license to apply for the “zivno visa“, you can get an “inactive trade license” though. Once your visa is approved, you can activate the trade license.
What is the process and documents needed to get Czech Trade License?
We describe the whole process in this Czech Trade License – Everything you want to know article.
Do I have to be in the Czech Republic to get a Czech Trade License?
No, not really. We can get the trade license on your behalf completely. Simply fill in one of the forms on this page and we’ll get back to you within 24 hours.
The only thing you need to keep in mind is your immigration status in the Czech Republic (see above). If you do not have any long-term visa or residence permit in the Czech Republic, you might not be eligible to get a Czech Trade License.
Can I get a Czech Trade License if I am already employed in Czech Republic? Can I have both Trade License and employment?
Yes, it is possible to be both employed and self-employed. It might even have some advantages such as no need to pay social and health care on monthly basis. If you are a non-EU citizen though, you need to keep in mind your immigration status as well though (i.e. you can not switch from an employee/blue card to business residence permit before you reach five years of living in the Czech Republic). Get in touch if this is your situation and we’ll be happy to explain everything in details.
Can I get Czech Trade License as a student in the Czech Republic?
Yes, absolutely! Actually, many of our clients are students who want to earn money to support their studies. If you have a 23 code in your residence permit, you do not even need to get the criminal check and you might not need to pay the monthly health and social! Get it touch to find out more.
Can I get Czech Trade License under family reunification visa or residence permit?
Of course! If you came here under the family reunification visa, you can not get employed directly so many of our clients use the trade license to be able to earn money in Czech Republic before they get the right to work. There might be other options to work here as well though, check this Working under family reunification visa article.
How long does it take to get a Czech Trade License?
Getting the actual trade license generally takes 3-5 business day from when we gather all the documents. We then though have to get you registered with the Social Security, potentially also Health Care and Tax Office. There registrations might take a few weeks to finish but you can start working from the day your trade license is activated so it does not matter much.
What taxes do I have to pay when I get Czech Trade License?
Once you get a Czech Trade License, you generally have to get registered with three authorities: Social Security (everyone has to get registered there), Health Care (generally only EU citizens, permanent residence holders and about 7 nationalities such as Americans, Turkish, Japanese can register with the public health care) and Tax Office (the need for registration was technically canceled on 1.1.2024 but you should still get your tax number from them to be able to pay taxes next year).
Social security (and health care – see above where applies) are paid monthly and each is around 3 000 CZK a month in 2024. Income tax is only paid once a year (in March for the previous calendar year). The income tax is 15% of your net income (income minus expenses).
What is a Flat Tax in Czech Republic?
Flat tax is a scheme where you do not have to pay to three different authorities (social, health and income tax) different amounts at different times of the month/year but where you only pay one flat amount every month. Simply said, instead of paying 3 200 CZK a month to social security, 3 000 CZK a month to health care and 15% to the tax office in March, you just pay 7 000 CZK a month to the tax office and that covers everything.
The flat tax has some advantages (i.e. you only make one payment instead of three, you do not have to submit your tax returns), on the other hand, it might also have disadvantages (i.e. it is not financially beneficial for everyone – that depends on your income, since you do not submit tax returns, you basically have not proof of how much you make for banks if applying for a mortgage or for the MOI if applying for a residence permit).
There are different levels of the monthly payment depending on your expected income (i.e. if you expect income between 0 a 2 mil CZK, you pay 7 000 CZK, if you except to earn 2-4 mil CZK, you pay 16 000 CZK a months etc.).
Do I get a Data Box with a Czech Trade License?
Yes, this is a new requirement from 1.1.2023. Every person (Czech or not) gets a Data Box assigned as soon as they get their trade license activated. Data Box is basically and official “email system” to communicate with Czech governmental institutions (i.e. you can submit your tax return electronically via the Data Box instead of bringing physical documents to the Tax Office).
The MOI sends a physical letter with your Data Box login details to your home address (in CZE) within a few weeks after you get you Czech Trade License.
Hopefully, this article has answered all your Czech Trade License related questions. Get in touch using the form below if you want some help with getting your trade license and/or if you have some question that has not been answered above 🙂
