Get free access to
Our legislation updates make it easy for you to keep on top of the latest changes affecting your business. Receive our articles, opinions, tips, industry news, country profiles, regional overviews and studies, latest events and even more, directly into your mailbox.
Check out our Newsroom to see what is included!
We will send you only relevant information we consider may be of your interest and treat your personal data in compliance with our Privacy policy and GDPR statement.
Unable to subscribe? Try this page.
Cross-border employment brings a new set of responsibilities when it comes to fiscal obligations. Our overview on global mobility and expat tax in the Czech Republic, prepared by our local tax experts, provides you a comprehensive overview on tax residency conditions, personal income tax, social security and health insurance contributions or penalties for non-compliance.
Our local tax, payroll and labour law experts are here to help you – as an expat or an employer – to obtain essential professional advice, so that you can effectively address all the matters related to cross-border mobility in the Czech Republic and other locations globally.
An individual is considered a Czech tax resident if:
The individual has a permanent place of residence in the Czech Republic in which they intend to stay permanently
The individual stays for 183 days or more in the Czech Republic continuously or intermittently in the calendar year
Based on the Czech legislation, the following types of income are subject to taxation:
Employment income: Salaries, bonuses, remuneration of executives and members of the board of directors.
Self-employment income: Revenues from business and professional services.
Capital gains: Interests and dividends (from foreign sources), dividends and interests from Czech sources are usually subject to withholding tax at source and may not be included in the annual personal income tax return.
Rental income: Proceeds from the lease of real estate and flats, long-term rental of movables.
Other income: Proceeds from the sale of securities, sale of property (unless they are exempt from taxation).
A specific group of income from dependent activities are employee benefits, such as:
Pension and life insurance contributions: exempt from tax up to CZK 50,000 / year.
Contributions to retirement savings products – exempt from tax up to CZK 50,000 / year. The retirement savings products are defined by the Czech tax legislation as:
Non-monetary benefits in the field of culture, education, purchase of services and goods from medical institutions, recreation and trips etc., which are provided by the employer to the employee or his/her family members, are exempt from taxation on the employee’s part only up to half of the average wage for the whole calendar year. For 2025, the threshold is CZK 23,278. The employee’s taxable income is the amount exceeding the limit. The tax non-deductibility on the employer’s part is linked to the exemption on the employee’s part i.e. expenditure on non-monetary benefits is always tax non-deductible if it is also exempt on the employee’s part. Excess amounts might be tax deductible on the employer’s part if the entitlement to non-monetary benefits is based on an internal regulation, collective agreement or employment contract.
Meal vouchers, employer canteen and meal cash allowance: exempt up to 70% of the upper limit of the meal allowance that can be granted to employees for a business trip lasting 5 to 12 hours (for 2025 the amount is CZK 123.90). For exemption from taxation, it is also necessary to meet the condition of the employee’s presence at work which lasts at least 3 hours. For shifts lasting at least 11 hours, it will be possible to grant double the amount. The amount above the stipulated limit is considered employee’s taxable income subject to social security and health insurance contributions (both on the employee’s and the employer’s side). The claim should be stipulated in an internal directive/employment contract.
Calendar year
If an employer employs an EU citizen, they have the following information obligation:
Must electronically inform the Labour Office of the Czech Republic about the start of employment of an EU citizen or their family member.
This obligation must be fulfilled by the employer no later than the first day of employment. The notification can be submitted via an electronic information card or by sending an XML file via a data box, or by direct integration into the Ministry of Labour and Social Affairs (API) interface.
In the event of termination of employment or changes in data, the employer is obliged to inform the Labour Office of the Czech Republic within 10 calendar days at the latest.
If the employment contract is for an indefinite period, termination must be reported. If it is for a fixed term and the employee terminates in accordance with the reported period of employment, notification of termination is not required.
The employer is also obliged to keep records of all foreigners employed.
The employer faces a fine of up to CZK 100,000 for non-compliance with the information or registration obligation.
As with the employment of EU citizens, employers have almost the same obligations:
Must electronically inform the Labour Office of the Czech Republic in writing about the start of employment.
This obligation must be fulfilled by the employer no later than the first day of employment. The notification can be submitted via an electronic communication or by sending an XML file via a data box, or by direct integration into the Ministry of Labour and Social Affairs (API) interface.
In the event of termination of employment or changes in data, the employer is obliged to inform the Labour Office of the Czech Republic within 10 calendar days at the latest.
If the employment contract is for an indefinite period, termination must be reported. If it is for a fixed term and the employee terminates in accordance with the reported period of employment, notification of termination is not required.
The employer is also obliged to keep records of all foreigners employed.
The employer faces a fine of up to CZK 100,000 for non-compliance with the information and registration obligation.
Furthermore, the employer is obliged to keep copies of documents proving the right of residence of foreigners, for the duration of employment and for a period of 3 years from termination.
The tax return is due 3 months after the end of the tax period. More precisely, the deadline is the following:
April 1, if submitted in paper form
May 1, if submitted electronically via data mailbox
July 1, if the tax return is filed by a tax advisor based on a power of attorney
Deadline extension by further 3 months, or until November 1 in case there is a foreign income
Delayed filing of the tax return: 0.05 % of tax assessed, 0.01 % of tax loss, max. 5% or CZK 300,000.
Delayed payment of the due tax: the CNB’s annual repo rate at the first day of the relevant calendar half-year increased by 8%
Delayed or missing registrations at tax authorities: up to CZK 500,000
Delayed or missing report on monthly salary or withholding tax from salary: up to CZK 500,000
Not requesting an A1 form from the respective authorities: up to CZK 20,000
Delayed report on social security: up to CZK 50,000
Delayed payment of the social security contributions: Late interest payment calculated on the CNB’s annual repo rate at the first day of the relevant calendar half-year increased by 8%. The late interest payment is issued only if exceeds CZK 1,000.
Delayed or missing registrations for the purposes of social security: up to CZK 20,000
Delayed report on health insurance: up to CZK 50,000
Delayed payment of the health insurance contributions: Late interest payment calculated on the CNB’s annual repo rate at the first day of the relevant calendar half-year increased by 8%. The late interest payment is issued only if exceeds CZK 1,000.
Delayed or missing registrations for the purposes of health insurance: up to CZK 10,000 or CZK 20,000 in case of repeated failure
About Accace
Accace is a proactive consultancy and outsourcing partner who bridges the gap between needs and solutions. Combining smart and streamlined technology with a holistic approach, we provide an all-round care to clients and consider their matters as our own. With over 800 experts and approximately 2,000 customers, we have vast experience with facilitating the smooth operation and growth of small to large-scale, global businesses.
About Accace Circle
Accace operates internationally as Accace Circle, a co-created business community of like-minded BPO providers and advisors who deliver outstanding services with elevated customer experience and erase the borders of service delivery. Covering over 60 jurisdictions with more than 7,000 professionals, we support over 80,000 customers, mostly mid-size and international Fortune 500 companies from various sectors, and process at least 800,000 pay slips globally.
Sign up and get free access to our expert knowledge and valuable insights. You can unsubscribe from our mailing list anytime. Check also how we handle your data: Privacy policy | GDPR statement.
Already subscribed? Confirm your e-mail address below and receive your PDF directly in your inbox.
