Czech Republic: all programs

The main ones: personal income tax of 15% (23% on the amount above the threshold of about 1.76 million CZK a year), social security contributions of about 7.1% and health insurance of about 4.5% on salary, property tax, and VAT of 21%/12% inside the price of goods. A sole trader can replace all of this with a single flat payment from 9,984 CZK a month. Data as of 2026.

Yes, but only for tax residents: they declare and pay Czech tax on all income, including foreign salary, dividends and rent. Double taxation is removed by treaties - Czechia has around 90 of them. Non-residents pay tax only on income from Czech sources.

There are two rates: 15% on annual income up to 1,762,812 CZK (36 average monthly salaries) and 23% only on the amount above that. The scale is marginal - the higher rate does not apply to the whole income. On top of that there is a basic taxpayer credit of 30,840 CZK a year, which reduces the tax itself.

Only tax on income from Czech sources - salary from a Czech employer, rent from local property, business in the country - at the same rates of 15% and 23%. A non-resident's worldwide income is of no interest to Czechia. But most deductions are available only to those whose Czech income is at least 90% of their total income.

The standard rate is 21% and the reduced rate is 12% - on food, medicines, public transport, hotels and catering. VAT registration becomes mandatory at turnover above 2,000,000 CZK a year. As of 2026 books are exempt from VAT.

It is the pausalni dan regime: a single fixed monthly payment covering personal income tax, social contributions and health insurance, with no tax return to file. In 2026 the payment is 9,984 CZK (band I), 16,745 CZK (band II) or 27,139 CZK (band III) depending on turnover. It is available to sole traders with income up to 2 million CZK a year who are not VAT-registered.