# 🇨🇿 Czech Republic — 2026 Freelancer & Company Tax FAQ 2026-07-31 — Podnikio Team 2026 FAQ: OSVČ and s.r.o. taxation in the Czech Republic — registration, rates, and the questions we hear most. Answers to the questions we hear most often about freelancing and running a company in the Czech Republic: OSVČ vs. s.r.o., which tax method to pick, registration, and compliance. ## Income tax ### What's the sleva na poplatníka in 2026? A flat 30,840 CZK personal tax credit, subtracted directly from your calculated income tax — not your income. It applies to real expenses and recognized expenses, but not to paušální daň or s.r.o. corporate tax. [→ Read the full answer](/en/blog/czech-republic/faq-sleva-na-poplatnika-2026) ## Real expenses ### What's the effective tax rate under real expenses in 2026? Roughly 33–43% across common zero-expense scenarios. It is usually much more expensive than recognized expenses or paušální daň, and becomes worthwhile when documented costs exceed the flat deduction available for your activity. [→ Read the full answer](/en/blog/czech-republic/faq-real-expenses-effective-rate-2026) ### What are the OSVČ health & social insurance minimums in 2026? At least 39,664 CZK/year in health insurance and 60,056 CZK/year in social insurance, even at very low income — with a 2,350,416 CZK ceiling on social only. [→ Read the full answer](/en/blog/czech-republic/faq-osvc-insurance-min-max-base-2026) ## Recognized expenses ### What are the four recognized expense rates in 2026? 80%, 60%, 40%, or 30% depending on your trade licence activity — most IT freelancers use the 60% rate. [→ Read the full answer](/en/blog/czech-republic/faq-recognized-expenses-rates-2026) ### What happens above the recognized expenses cap? Once your gross income exceeds the cap, the deduction is frozen and your effective tax rate rises. ## Paušální daň (fixed payment) ### What are the three paušální daň bands in 2026? From 9,162 CZK/month up to 27,139 CZK/month. [→ Read the full answer](/en/blog/czech-republic/faq-pausalni-dan-bands-2026) ### When do I need to opt into paušální daň? The statutory date is 10 January, shifted to the next working day when it falls on a weekend or holiday. A newly starting OSVČ can enter when beginning the activity. [→ Read the full answer](/en/blog/czech-republic/faq-pausalni-dan-deadline-2026) ## s.r.o. company taxation ### What's the s.r.o. corporate + dividend tax rate in 2026? 21% corporate tax plus 15% dividend tax — a 32.85% two-layer rate on distributed profit. If you take no salary and have no other insured status, you also need to include the ~36,288 CZK/year OBZP self-payer health insurance cost. [→ Read the full answer](/en/blog/czech-republic/faq-sro-two-layer-tax-2026) ### Does retaining profit in the company reduce tax? Yes — retained profit is taxed once, at 21%; the 15% dividend tax only applies once you actually withdraw it. [→ Read the full answer](/en/blog/czech-republic/faq-sro-profit-retention-2026) ## Working with foreign clients ### Can I keep a German client while on a Czech živnostenský list? Yes — your trade license doesn't restrict where clients are based. What changes is VAT invoicing (reverse charge) for EU B2B services, not your eligibility to work with them. [→ Read the full answer](/en/blog/czech-republic/faq-zivnostensky-list-german-client-2026) ## Contact us If you have a specific question about freelancing or running a company in the Czech Republic, feel free to reach out to us. We offer a free initial consultation. ## Related posts - [🇵🇱 Poland — Flat Tax Health Insurance Deduction in 2026](https://www.podnik.io/en/blog/poland/faq-flat-tax-health-insurance-2026) - [🇵🇱 Poland — Tax Heaven for Freelancers in 2026](https://www.podnik.io/en/blog/poland/tax-heaven-for-freelancers-2026) - [🇵🇱 Poland — Ryczałt Tax Rates by Activity in 2026](https://www.podnik.io/en/blog/poland/faq-ryczalt-rates-2026)