Brno

Salary from a foreign employer or fees from foreign clients

Taxed15% up to CZK 1,762,812 a year and 23% above (2026), less a CZK 30,840 credit; or the flat-tax regime at CZK 9,162, 16,745 or 27,139 a month including insurance

Salary from a foreign employer is taxed on the gross amount at 15%, and 23% on the part above 36 times the average wage (CZK 1,762,812 in 2026), with a basic credit of CZK 30,840 a year (§ 16, § 35ba). A foreign employer with no Czech presence withholds nothing, so you file an annual return and pay advances yourself; foreign tax is relieved by credit or exemption as the treaty says (§ 38f). Freelancers need a trade licence (živnostenský list) and register for tax, pension insurance and health insurance. Instead of actual costs they can deduct 60% of trade revenue (capped at CZK 1,200,000), 80% for crafts and 40% for liberal professions (§ 7(7)); with 60%, tax is about 6% of revenue before the credit. Pension insurance is 29.2% of 55% of profit, at least CZK 5,005 a month for a main activity (cut retroactively for all of 2026 from CZK 5,720), and health insurance is 13.5% of 50% of profit, at least CZK 3,306 a month. Many freelancers use the flat-tax regime instead (see regimes). The catch for non-EU nomads: without permanent residence, a self-employed person or an employee of an employer with no Czech seat is outside Czech public health insurance and needs private cover (Health Insurance Act, § 2), which also rules out the flat-tax regime. For a remote employee whose employer is based in a country with no social-security agreement with Czechia, Czech sickness and pension insurance is voluntary; EU rules or a bilateral agreement decide other cases and are not covered here. VAT registration is required above CZK 2,000,000 of turnover a year.

On the nomad visa

The Digital Nomad Program (Government Resolution 475/2023) fast-tracks a long-term visa for IT and marketing specialists from 13 countries, but gives no tax break. Holders become resident under the home or 183-day test and are taxed on worldwide income like anyone else. The programme rules count on participants paying Czech income tax and social and health contributions, and employees of foreign employers must show a Czech tax-domicile certificate to renew their inclusion. Freelancers on the programme work under a Czech trade licence.

Dividends, interest, gains, rent and pensions from abroad

TaxedForeign dividends and interest 15%–23%, or 15% flat by election; share and crypto gains 15%–23% unless held over 3 years; rent and pensions above the exempt amount 15%–23%

Foreign dividends and interest go into the general tax base at 15%–23%, or, if you choose this for all of them, into a separate base taxed at a flat 15% (§ 8(4) and (8), § 16a); foreign withholding tax is credited as the treaty allows (§ 38f). Czech dividends and interest have 15% withheld at source (§ 36). Gains on shares, bonds and fund units are taxed at 15%–23%, but are exempt if held over 3 years, or if your total sale proceeds from securities stay under CZK 100,000 in the year (§ 4(1)(t)–(u)). Crypto follows the same 3-year and CZK 100,000 rules, but 3-year-exempt crypto gains above CZK 40,000,000 a year are taxed (§ 4(1)(zj)–(zk) and (3)). Property gains are exempt after 10 years of ownership, or after 2 years if it was your home (§ 4(1)(a)–(b)). Rent is taxed at 15%–23% after actual costs or a flat 30% deduction capped at CZK 600,000 (§ 9(4)); rent from property abroad is normally taxed first where the property is, then relieved as the treaty says. State pensions, including foreign compulsory ones, are exempt up to 36 times the minimum wage, CZK 806,400 in 2026, and taxed at 15%–23% above that (§ 4(1)(g)). Exempt income over CZK 5,000,000, such as a large exempt share sale or gift, must be reported to the tax office by the return deadline (§ 38v).

Net wealth and inheritance

No wealth taxNo inheritance tax

Czechia has no net wealth tax and no separate inheritance or gift tax. Inheritances are exempt from income tax (Income Tax Act, § 4a), and so are gifts from relatives in the direct line, siblings, uncles, aunts, nephews, nieces, spouses and in-laws, and from someone you lived with for at least a year (§ 10(3)(c)). Other gifts are taxed as income at 15%–23%, except occasional gifts up to CZK 50,000 a year from the same giver. Exempt amounts above CZK 5,000,000 must be reported (§ 38v). The real-estate transfer tax was abolished in 2020 (Act No. 386/2020 Coll.). Owners pay annual property tax by area: CZK 3.50 per m² for residential buildings, multiplied by a size coefficient (4.5 in Prague) and any local coefficient of 0.5 to 5.0 set by the municipality (Real Estate Tax Act, § 11–12).

Tax resident after

183 days a year

Top income tax rate

23%

When you become tax resident

You are resident, and taxed on worldwide income, if you have a home (bydliště) in Czechia, meaning a permanent dwelling held in circumstances showing you intend to stay in it permanently, or if you usually stay here, meaning at least 183 days in a calendar year, continuous or in several stays, with every started day counted (Income Tax Act, § 2(2) and (4)). Someone on a one-year visa who rents a flat and works from Czechia will normally pass the 183 days, and may count as having a home from the start. People staying only to study or for medical treatment stay non-resident (§ 2(3)). The Act has no split-year rule; if another country also treats you as resident, the tie-breaker in its tax treaty decides. A non-resident is taxed only on Czech-source income, which includes pay for employment physically done in Czechia and services provided here, wherever the payer is (§ 22(1)); a treaty may exempt a short stay.

Top income tax rate

Prague, as anywhere in Czechia: 15% on taxable income up to 36 times the average wage (CZK 1,762,812 in 2026) and 23% above. There is no regional or municipal income tax and no surcharge, so the top rate is the same nationwide. Employee and self-employed social and health insurance are not counted here; the pension-insurance assessment base is capped at CZK 2,350,416 a year.