To operate as a freelancer in the Czech Republic, you need to obtain a Trade License (Živnostenský List), which is a relatively simple process:

1. Apply for a Trade License: Complete a registration form and submit it either online or at a public administration office. Most freelance services qualify under the Trade Licensing Act and do not require specific permits.

2. Documentation: Non-residents may need a criminal record statement and proof of qualifications if the field requires them. You’ll also need to show proof if working outside your residence.

3. Register with Social Security and Health Insurance: After receiving your trade license, register to pay social and health insurance.

4. Visa Requirements for Non-Residents: If you aren’t a Czech resident, apply for a work visa to ensure legal compliance.

*Please be aware that we do not update this information in real time, so you should verify that the law has not changed recently.

Costs of Freelancing in the Czech Republic

The costs associated with freelancing in the Czech Republic include taxes, licensing fees, and social and health insurance:

• Trade License Fee: The application fee is 1,000 CZK.

• Income Tax: Freelancers pay 15% of income up to 1,867,728 CZK, with earnings above this amount taxed at 23%.

• Social Security and Health Insurance: Contributions must be made monthly.

• VAT: Freelancers with sufficient income must register for a VAT number through the EU, typically at a standard rate of 21%.

VAT Requirements for Freelancers

The Czech Republic requires VAT payments to be made quarterly, which involves adding 21% VAT on most services. While some goods and services qualify for reduced VAT rates (15% or 10%), these are rarely applicable to freelance services.

Invoicing Practices in the Czech Republic

Invoicing for freelancers in the Czech Republic must meet specific criteria:

• Date: Issue invoices within 15 days of the tax date.

• Sequential Numbering: Each invoice should have a unique, sequential number.

• Details Required: Include your VAT number, as well as your client’s name, address, description of services, net cost, and VAT rate.

Steps to Start Freelancing in the Czech Republic

1. Meet Qualifications and Obtain a Trade License: Ensure you have any necessary certifications and register your business.

2. Register for VAT and Social Insurance: Set up tax accounts and pay required administrative fees.

With the right preparation, the Czech Republic can be a rewarding and lucrative place to start a freelance career.