Paying Taxes in Czech Republic

Do you want to open a company in the Czech Republic? Would you like to know the taxes that need to be paid by individuals living in this country? This article presents information about the main taxes payable in the Czech Republic. Explore these lines and then access our online services for personalized assistance.

What types of tax services do you provide in the Czech Republic?

• tax optimization & restructuring,
• tax advice for company owners,
• tax due diligence,
• support in mergers & acquisitions in tax matters,
• advice on VAT in the Czech Republic,
• tax compliance,
• support in preparing income tax returns for companies in the Czech Republic,
• dedicated tax services for expats in the Czech Republic,
• legal advice in tax disputes/litigation, and many more.

What are the main taxes in the Czech Republic?

• 21% corporate income tax (lower rates apply),
• 15% personal income tax,
• 21% VAT.

Who pays the corporate income tax in the Czech Republic?

Companies with activities in the Czech Republic. Here are details about this tax:

• the 21% CIT applies to corporate profits generated/registered in the Czech Republic,
• capital gains are levied at the same tax rate,
• there is a 5% CIT for investment funds, etc.

How is the personal income tax imposed in the Czech Republic?

• 15% tax rate is imposed on income up to 36 times the ordinary wage in the Czech Republic,
• 23% is the personal income tax rate for salaries above this threshold.

DID YOU KNOW?

There is a basic tax credit of around CZK 2,570/month to reduce the amount of taxes of company employees.

How is the VAT levied in the Czech Republic?

• 21% tax rate on most goods and services for sale in the Czech Republic,
• 12% tax rate on foodstuff, hotel accommodation, transportation, etc.,
• No VAT on cross-border intra-EU supplies, exports, electronic & printed books.

NOTES:

• CZK 2 million/year is the VAT threshold in the Czech Republic,
• voluntary VAT registration is possible below the above-mentioned threshold,
• monthly electronic transaction VAT report must be submitted.

NOTE: Check the services of our Czech accountants when setting up a company.

What are the payroll taxes in the Czech Republic?

• 7.1% Social Security taxes paid by the employee,
• 4.5% public health insurance paid by the employee,
• 24.8% Social Security paid by the employer,
• 9% public health insurance paid by the employer.

NOTES:

• the employee also pays the compulsory accident insurance tax, varying from 0.28% to 5%.
• CZK 22,400 is the minimum wage in the Czech Republic in 2026.

Is real estate transfer tax imposed in the Czech Republic?

No. This tax was eliminated in 2020.

Is there an inheritance tax in the Czech Republic?

No.

What other taxes are imposed in the Czech Republic?

• 30%-35% gambling tax,
• 15% WHT on dividend income (unless there are exemptions),
• 15% tax rate on non-Czech investment income.

Businessmen interested in receiving more details about taxation in the Czech Republic imposed on corporate bodies can contact our team of Czech company formation agents. We also assist in Czech company incorporation.