Do I pay taxes in Czech Republic with a digital nomad visa?
AI Answer
Yes, you absolutely pay taxes in the Czech Republic as a digital nomad holding a Zivnostensky List. You're considered a self-employed individual, meaning you're on the hook for income tax, social security, and public health insurance.
Income tax is a flat 15% on your declared profits. You can reduce your taxable income significantly by using the 60% flat-rate expense deduction, meaning you only pay tax on 40% of your gross income. For example, if you earn CZK 1,000,000, you're taxed on CZK 400,000.
Beyond income tax, you'll pay social security and health insurance. In 2024, the minimum monthly social security payment is CZK 3,210, and health insurance is CZK 2,722. These are mandatory contributions.
Factor these into your budget. While the Czech Republic has a low cost of living compared to Western Europe, these contributions add up. Net Life Value gives Prague a cost of living score of 4.5 out of 10, significantly lower than London (8.5) or Amsterdam (7.5). Understanding these tax obligations ensures a smooth stay.