Czech Republic
Top Income Tax
23%
Marginal rate
Corporate Tax
21%
Standard rate
VAT / Sales Tax
21%
Standard rate
Capital Gains
15%
Standard rate
Overview
Czech Republic offers moderate tax rates with a well-developed business environment in the heart of Europe. Prague is an attractive city for expats with good quality of life at reasonable costs. The tax system is relatively straightforward with capital gains exemptions for long-term holdings.
Income Tax Brackets
| Income Range (CZK) | Tax Rate |
|---|---|
| 0 - 1,935,552 | 15% |
| 1,935,552+ | 23% |
15% standard rate. 23% on income above ~48x average monthly wage.
Corporate Tax
Standard Rate
21%
21% standard rate. Set to decrease to 19% in coming years.
VAT / Sales Tax
Standard Rate
21%
Reduced Rates
12%
12% reduced rate on food, medicines, accommodation, selected services.
Capital Gains Tax
Standard Rate
15%
Taxed as income at 15%. Exempt after 3 years for securities, 10 years for real estate.
Social Security Contributions
Employee
11%
Employer
33.8%
Self-Employed
29.2%
Employer: 24.8% social + 9% health. Employee: 6.5% social + 4.5% health.
Pros & Cons
Pros
- Moderate 15% income tax rate
- Capital gains exempt after 3 years
- Central European location
- Good quality of life
Cons
- High employer social contributions (33.8%)
- No digital nomad visa
- Rising cost of living in Prague
- Complex residency procedures
Living Indicators
Cost of Living Index
Moderate
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for Czech Republic is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Czech Republic government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.