For Freelancers & Digital Nomads

Could You Pay as Little as 5% Income Tax in the Czech Republic?

Find out whether you qualify for an effective tax rate of around 5% as a freelancer in the Czech Republic. Calculate your estimated taxes and book a consultation with Pexpats, an independent Czech tax and accounting agency.

  • 100% Remote
  • No Commitment
  • Free Consultation
Calculate My Tax 4.9· 500+ reviews

Trusted by 5,000+ freelancers
from 50+ countries

Independent Czech-Registered Tax, Accounting & Relocation Firm

Pexpats is a private professional company, not a government authority or affiliated with Czech government offices. We provide professional services online on your behalf under an electronically signed power of attorney.

Freelancer working on a laptop with the Prague skyline in the background

🇨🇿 Czech Republic

Freelance taxes from

5%

of your profit*

*Depends on your income and business situation.

Why freelancers choose the Czech Republic

Low overall tax

Many freelancers pay from 5% of their profit.*

EU Member State

Live and work in the European Union.

100% Remotely

We handle the entire process online.

Crypto & capital gains

Exemption wording requires tax review.

English support

Clear communication in simple English.

Why can taxes start from only 5%?

Three reasons make Czech taxes one of the lowest in Europe.

1. 60/40 Expense Method

60% of your income is deducted as expenses automatically.

Automatic expenses€36,000
Taxable income€24,000
Annual profit€60,000
− 60% expenses€36,000
Taxable income (40%)€24,000
Income tax (15%)€3,600
− Tax credit€1,234

Final tax

€2,366

Effective tax rate

3.94%of income

No need to prove actual expenses.

*The €2,366 figure is income tax only. Social and health insurance contributions are not included.Check our full calculator for complete results

2. Flat Tax (Paušální daň)

Example for a €60,000 yearly profit — one payment covers everything.

Social insurance€3,120/ year
Health insurance€1,224/ year
Income tax€48/ year

Total flat tax

€4,392

/ year

Effective tax rate

7.32%

of income

Income tax portion: only €48 for the full year

No accounting. No surprises. One fixed flat tax.

3. Crypto & Capital Gains

Crypto and capital gains exemption wording requires tax review.

Held for more than 3 years

  1. 1Hold for more than 3 years
  2. 2No declaration needed
  3. 0%tax

Below the exemption threshold

  1. 1Sales below the exemption threshold
  2. 2No declaration needed
  3. 0%tax

Tax exemptions for cryptocurrency and investments depend on the type of income, holding period and applicable Czech tax rules. Reporting obligations may still apply.

How Much Income Tax Could You Pay?

Enter your yearly income and see your estimated Czech income tax.

€
€10,000€100,000

Enter your yearly gross freelance income before expenses.

Your data is safe and never shared.

Your Estimated Income Tax

Based on €60,000 yearly income

Estimate only

€2,366/ year

Estimated Income Tax

3.94%

Effective Tax Rate

Yearly Income€60,000
Automatic Expense Deduction (60%)−€36,000
Taxable Income€24,000
Income Tax (15%)€3,600
Tax DiscountBasic taxpayer discount−€1,234
Estimated Income Tax€2,366 / year

The estimated income tax figure is income tax only. Social and health insurance contributions are not included. Check our Full Czech Tax Calculator for complete results.

This is an estimate. Your final tax may vary based on your personal situation.

Now let's check if you're eligible for this tax setup.

The Czech 60/40 expense method and flat tax don't apply to everyone.

Could you qualify?

Four quick questions. It takes less than a minute.

Are you an EU citizen?

Do you work remotely or with online clients?

Expected yearly income

When are you planning to relocate?

How it works

A simple, 100% remote process.

1

Free consultation

Tell us about your situation. It takes less than 1 minute.

2

We prepare everything

We register your business and handle the paperwork.

3

You're ready to work

Start freelancing and pay only 5% tax on your profit.*

What freelancers say about us

Take Action

Ready to Take the Next Step?

Choose how you'd like to get started.

Book a Free Consultation

Speak directly with a Czech tax advisor.

  • 40-minute call with an expert
  • Personalized advice for your situation
  • No commitment
Book a Free Call

Send Us a Message

Prefer to write? Send us your questions and we'll reply by email.

Send a Message
Ready to proceed

Freelance & Business Consultation

Get expert guidance on Czech freelancing, taxes and business obligations.

Explore Consultation

Send Us a Message

Not ready to book a call? Send us your question and we'll reply by email.

Are you an EU citizen?

0 / 500

Prefer speaking? Click the microphone to dictate your question.

Your information is safe and confidential.

We never share your data or send marketing emails.

Prefer to talk now?

Call us directly

+420 777 771 566

Email us directly

Send us an email

info@pexpats.com

About Pexpats

Pexpats.com s.r.o. (IČO: 09675094) is an independent Czech tax and accounting agency providing professional consultations, accounting and tax administration services.

Pexpats holds Czech trade authorisations for accounting advisory, bookkeeping and tax-record services. We are a private company, not a Czech government authority or tax office, and are not affiliated with Czech government institutions.

Verify Our Professional Authorisation