Short answers to the questions we hear most. Each answer links to the full guide.
Starting
Do I need a business visa for a trade license?
Only if you are not an EU, EEA or Swiss citizen and have no other residence permit. With a permit for employment, study or family you can have a trade license next to it. See other visas and the business visa.
Do I need a work permit?
No. A work permit is only for employees of a Czech company. On a trade license you are self-employed.
Can I have a trade license next to a job?
Yes. It is then a secondary activity, with lower or no monthly minimums for social security and health insurance. See social security.
Do I need a Czech address?
Yes, a business address (sídlo): your own home with the owner's consent, or a virtual office. See business address.
Do I need a diploma?
Not for most freelance work: consulting, programming, translation, trading and teaching are free trades. See free trades.
How long does registration take?
Once your documents are complete, the trade license is usually registered in about 5 working days. The visa, if you need one, takes much longer. See registration steps.
Trade license or s.r.o.?
For freelancers, almost always a trade license: less paperwork, lower costs and no company accounting. See trade license or s.r.o.
Taxes and payments
What do I pay every month?
With the trade license as your main activity: at least 5,005 CZK social security and 3,306 CZK health insurance (if you are in public health insurance). Income tax is paid once a year. See tax, social and health in short.
How much tax will I pay in total?
With the 60/40 method, tax, social security and health insurance come to about 13 to 14% of your revenue. See income tax for a trade license and what a trade license costs.
Which tax method should I choose?
Most of our clients use the 60/40 method; about a quarter use the flat-tax method. It depends on your revenue and family. See 60/40, real expenses or flat tax.
When is the tax return due?
By 1 April, early May when filed electronically, or 1 July when a tax advisor files it. See the personal income tax return.
Do I need a Czech bank account?
No. You can pay tax, social security and health insurance from a foreign account, as long as you use the right variable symbol. See bank accounts for tax, social and health.
Clients and VAT
Can I invoice in euro, and to clients abroad?
Yes. Many of our clients only have clients abroad. Try our free invoice generator.
Do I need to register for VAT?
For invoicing companies in other EU countries, or buying services from them (including platform fees), you need a VAT-light registration. Full VAT only above 2,000,000 CZK revenue from Czech sources. Find out in a minute with the free VAT check.
Later on
What is a data box?
The official electronic mailbox of the Czech authorities. Every trade license holder has one. See the data box.
Can I pause my trade license?
Yes. Suspending it (přerušení) stops the monthly social and health advances, and restarting is easy. Useful when you take a job or leave for a while. See changes and fixes.
I got an official-looking letter asking me to pay. Is it real?
Often not: some companies send fake "official" invoices to new trade license holders. Do not pay before you are sure. See fake official letters.
About us
For almost 20 years we have helped thousands of foreigners start and run their business in the Czech Republic: registration, accounting, tax and VAT returns, and the contact with social security and health insurers. We tell you honestly what your chances are; we do not sell a service we expect to fail. More: about us.
