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Employment and Taxation

Employment

Profitable activities conducted by a foreign national in the Czech Republic may take two forms: The foreign national may either be employed by a legal entity or a natural person, or he/she may do business in the Czech Republic (see Doing Business in the Czech Republic). Foreign nationals – holders of permanent residency permits, asylum seekers, EU citizens, members of their families, and other eligible persons (See below) are not required to apply for a work permit in the Czech Republic.

Most of job vacancies can be found through the Jobcentres of the Labour Office. Employers have the obligation to report any open positions. Job seekers come to Jobcentres looking for a job on its own activity or with the assistance of agents.
Job vacancies can also be found through the information system EURES – European portal of working mobility – which offers easy access to information about job vacancies and education opportunities within the European Union.

Essential information and available positions in the Czech research area can be found at http://www.eracareers.cz - The Researcher´s Mobility Portal of the Czech Republic.

The list of main Czech job portals:

http://www.hotjobs.cz/

http://www.jobs.cz/

http://www.prace.cz/

http://www.jobmaster.cz/

http://www.jobatlas.cz/

http:/www.joblist.cz/

http:/www.infojob.cz/

http:/www.qjobs.cz/

http://www.volna-mista.cz/

http://www.inzerce.idnes.cz/

http://www.cvonline.cz/

http://www.ejob.cz/

http://online.idg.cz/computerworld/kariera/

http://www.prilezitosti.cz/

Wages

Employees carrying out the same work or work of the same value are entitled to the same wage, the wage conditions must be equal for men and women.

Average salary

In the year 2005, the average gross wage of Czech employees was nearly CZK 19,000. Employees in the technical fields and financial mediation have the highest wages, workers in the agriculture and textile industries have the lowest. Detailed statistics show that two-thirds of employees don’t reach the average wage.

Minimum wage

An employer is obliged to pay at least the minimum wage to an employee for his/her work: CZK 42.50 for each hour of the employee’s work, CZK 7,955 per month payable to employees remunerated on a monthly basis.

Working hours

Under the Labour Code, weekly working hours may not exceed 40 hours (i.e. 42.5 hours, including mandatory half-hour lunch breaks which cannot be provided at the beginning or end of working hours).

Taxes

Every tax resident with a legal residence permit in the CR has to pay from their wage a tax and health insurance.

Income tax for employees and businessmen

All natural persons residing in the CR or usually dwelling there must pay income tax (hereinafter referred to as the "payers"). Payers have a tax duty that covers both their income generated from sources in the CR and income generated from sources abroad.

Payers not mentioned above or those named in international treaties have a duty to pay tax on income generated from sources in the CR. Payers staying in the CR for the purposes of studies or medical treatment only have a duty to pay tax on income generated from sources in the CR (”tax non-residents”) with restricted duty to pay tax on selected income only.

Payers usually dwelling in the Czech Republic are persons usually staying there for at least 183 days in the relevant calendar year, regardless of whether in one sequence or in several periods of the year. For the purposes of the Act on Taxes, residence is deemed the place of the payer’s permanent residence, under circumstances that indicate his or her intention to remain in this residence.

Tax is paid on the following:

1. income from employment (i.e., wages, salary or compensation for work) and functional benefits (remunerations for the execution of an office);

2. income from business and other self-employment activities;

3. income from capital assets;

4. income from rentals and leases;

5. other income.

Taxation of income generated by foreign nationals is subject to international treaties banning double taxation.

Tax rate

The tax grows progressively. The tax from the tax base reduced by the non-taxable portion of the tax base and by tax base deductibles rounded up to CZK hundreds shall amount to the following:

Recognition of Professional Qualifications for nationals of EU Member States, EEA countries and Switzerland

Application procedure for recognition of professional qualifications

The web site of the Ministry of Education, Youth and Sports contains information for nationals of the EU Member States, the Czech Republic, the European Economic Area countries (Iceland, Liechtenstein and Norway) and Switzerland who wish to practise a regulated profession or professional activity in the Czech Republic. http://www.msmt.cz/uok

Social Security and Pension Rights

Pension Insurance

Along with sickness insurance premium and contributions to the state’s unemployment policy, Pension Insurance forms a part of social security premiums. Under the Act on Pension Insurance, participants in the pension insurance scheme are provided for in various life situations in which the policyholder is entitled to pension insurance benefits.

In addition, some terms and conditions of participation in the pension insurance scheme (including the payment of pension insurance benefits) may be governed by bilateral international treaties on social security.

Participants in the Czech pension insurance scheme include foreign nationals having their permanent or temporary residence in the Czech Republic (including persons having obtained asylum) having established an employment or similar relationship with an employer seated in the CR (incl. students of daily studies at colleges or universities with their permanent residence in the CR) and foreign nationals acting as self-employers in the CR. Foreign nationals working in the CR for an employer that does not have its registered office in the CR are subject to legal rules and regulations of the state where the employer has its registered office (this also applies to social security).

Types of Pension Insurance:

1. retirement pension,

2. full disability pension,

3. partial disability pension,

4. widow’s and widower’s annuity,

5. Orphan’s pension.

Note! Persons without permanent residence in the CR or persons who do not usually reside in the CR (i.e., persons staying abroad for at least 270 days in a calendar year) are entitled to a pension in the amount corresponding to the time of their insurance and the substitute time of insurance acquired in the Czech Republic (under Section 66 of Act No. 155/1995 Coll.). In this context, the substitute time of insurance corresponds, for instance, to the period when the policyholder was receiving sickness benefits, etc., in the CR.

Subsistence minimum

The subsistence minimum is the socially recognized minimum level of income to avoid material poverty. The subsistence minimum defines the amount of funds necessary for a household to provide for the temporary essentials of life of the household’s members, at a very modest level.

Sickness Insurance

Sickness insurance is paid to provide for situations when an adult in temporarily incapable of work due to sickness, pregnancy, maternal responsibilities, or when the adult must take care of his/her family member etc. In these situations, the adult receives sickness benefits. Participation in the sickness insurance system is mandatory for both Czech citizens and foreign nationals. Foreign nationals are required to pay sickness insurance premiums regardless of whether their residence in the Czech Republic is permanent or temporary.

Four types of benefits are provided for employees under the sickness insurance system: 

• sickness benefits,

• assistance in taking care of a family member,

• compensating benefit in pregnancy and maternity,

• monetary aid in maternity.

Benefits provided to self-employers: 

• sickness benefits

• monetary aid in maternity.

Health Care

Czech healthcare system is inspired by the European tradition, founded on public services and financed by predominantly public means.

It is provided predominately on the basis of obligatory public health insurance; contractual health insurance being of a supplementary nature.

Differences between public and private health insurance:

The legal right to public health insurance is established by law for anyone with permanent residency in the Czech Republic and those who, though they do not have permanent residency, are employed by employers based in the country. Those not fulfilling the conditions for public health insurance can conclude contractual health insurance.

Significant differences are

• in the scope of health care covered by public and contractual health insurance

• in the conditions of the inception, termination and duration of these types of insurance.

You will find complex information in the Guide to the Health care System in the Czech Republic: http://www.izpe.cz/files/aktuality/31.pdf

Health insurance

The public health insurance system in the Czech Republic is based on mutually binding relationships: the insured – healthcare providers – health insurers.

Foreign nationals in the CR are required to have health insurance.

EU nationals are entitled to health care under the same conditions as the nationals of the CR. They must present appropriate E-forms of their home health insurance company or the European Health Insurance Card to the health care provider. Dependants of the EU nationals coming to stay in the CR should register in a Czech health insurance company and have a Czech insurance card. EU nationals employed in the CR who do not regularly return to their home country other than the CR, are entitled to comprehensive health care in their home country as well as in the CR.

What scope of health care are a foreign worker and his/her unprovided for dependants entitled to and who covers it?
Workers have their full health care paid by the Czech health insurance company where they effected insurance for their stay in the CR. Unprovided for dependants are entitled to full health care both in the country of their permanent residence (an EU country) and in the country where the worker is employed (CR). Health care rendered to unprovided for dependants of workers is covered by the Czech health insurance company where the worker is insured.
How to proceed properly?

• a worker shall contact a selected Czech health insurance company in the place where he/she works and this insurance company will issue a form on which the place of his/her permanent residence shall be documented (for example information from your passport etc.),

• worker's unprovided for dependants will be listed on the form,

• this form must be confirmed by a health insurance company in the place of permanent residence (for example Austria),

• the selected Czech health insurance company shall always be informed about all potential changes which are important for entitlement to relevant material benefits within 8 days.

To forestall the situation of not being insured on the way to the CR a foreigner can take out short-term contractual health insurance. This insurance also covers necessary and urgent healthcare in transit to the CR. You can arrange insurance through your representative in the CR prior to arrival.

If you come to the CR for work purposes, employers based in the CR pay premiums on your behalf and the insurance relationship starts with the commencement of your employment. If your employer employs you in the CR but is based elsewhere find out from them about the conditions of your health insurance in the territory of the CR.

If you come to the CR with a visa for residence over 90 days and for another purpose than employment you are required to take out contractual health insurance. In this case health insurance is provided solely by the General Health Insurance Company of the CR (VZP CR). Visit one of their local branches or call VZP Assistance, telephone number: +420-221-752-121, +420-602-268-902, e-mail: asistence@vzp.cz , Orlická 4/2020, 130 00 Praha 3.

Health insurers:

Public health insurance in the Czech Republic is currently provided by public health insurers. The largest of the public health insurers is the General Health Insurance Company of the Czech Republic (Všeobecná zdravotní pojišťovna ČR – hereinafter VZP). www.pvzp.cz/

Aside from it there are currently eight other insurers, e.g.

Health Insurance Company of the Ministry of Interior of the CR (http://www.zpmvcr.cz/)

Metal Alliance Health Insurance Company (http://www.zpma.cz/)

Czech National Health Insurance Company (http://www.cnzp.cz/)

Industrial health insurance company for employees of banks and insurance companies (http://www.ozp.cz/)

Organisation of the System of Czech Healthcare Provision

Both state and private medical facilities exist in the CR. Almost all facilities have concluded contracts for the provision and payment of healthcare with health insurers and provide healthcare to patients insured at the relevant health insurers without direct payment.

Outpatient Care

In cases of falling ill a patient usually turns to a so-called primary care doctor who works in the patient's local area. These are general practitioners, paediatricians, also dentists and gynaecologists who can be visited directly.

Local administrative bodies, your health insurer or the phone book can be the sources of relevant information.

To be treated by a primary care doctor it is necessary to register with a doctor who has a contract with your insurer for the provision of healthcare. He or she then becomes your registered doctor, draws up a registry entry and is liable to systematic care of the patient, i.e. ensures basic care (including visits) and, as required, procures specialist care from a specialist or hospital.

Please note that policy-holders of contractual health insurance do not register with doctors. Their treatment is carried out by contractual doctors, as well as VZP contractual medical facilities.

If your state of health requires specialist care which your registered general practitioner cannot provide, the latter recommends you relevant specialised medical facilities which have contracts with your health insurer. Even in this case you have the right of free choice of healthcare facility and doctor. The registered doctor issues a recommendation for specialist care or treatment in hospital, or directly arranges for this admission. Patients can visit specialists in the CR without a recommendation from their primary care doctor.

Pharmacies issue patients with medicaments on the basis of prescriptions either without charge or for a charge corresponding to the part of the price covered by the insurer. Validity of medical prescriptions may differ from 24 hours (for prescription from the emergency service) to one week.

For urgent medical assistance call 155 - emergency services.

If you don’t speak Czech call the emergency number 112, where the English and German speaking operators will connect to line 155 themselves and communicate your problem. Every healthcare facility is required to treat you in the case of acute, urgent care.

If your need is not acute get help from a medical facility which is under contract with your insurer. Healthcare will be provided without direct payment in such facilities, to the extent of the given type of your health insurance (public health insurance or long-term contractual health insurance).

With short-term contractual health insurance it is necessary to turn to state-owned medical facilities (e.g. hospitals). Only necessary and urgent care is covered by this insurance.

How to find a doctor who speaks your language?

When concluding contracts for contractual health insurance it is possible to get contact information on facilities where foreign languages are spoken. It is possible to solve problems quickly with VZP CR Assistance services.

Medical Information Centre known as H.E.L.P. provides information on private doctors, hospitals, pharmacists, health resorts, private clinics, sanatoria and all other medical facilities operating in the Czech Republic.

Free information telephone line +420 296 182 626

email: help_lic@netforce.cz

Address: Lékařské informační centrum, Lékařský dům, Sokolská 31, 120 21 Praha 2.

Full catalogue located at http://www.kataloglekaru.cz/ or http://www.doctorhelp.cz/ or http://www.help-lic.cz/.

Housing, Family Life, Leisure Time, Everyday necessities

Houses and flats

Flats may be owned by

municipalities/towns, housing cooperatives, individuals and legal entities.

Municipal flats are always rented flats – the people who live in them have concluded an occupational lease with the municipality, and they pay rent.

A housing cooperative (hereinafter only referred to as "cooperative") is a legal entity formed by members that has its own rules and governing bodies. The cooperative is the owner of the building and flats are rented to members of the cooperative.

Renting a house or a flat

How Do I Rent A Flat (Apartment) in the Czech Republic? http://www.czechpoint101.com/renting.html

Currently, tenants pay for one of two rental types.

When renting a house or apartment on the free market, you can only arrange a "contractual rent." This is based on mutual agreement between the owner of the building and the tenant.

The country's most expensive housing is in Prague, where the average price for a square meter is 30% above the country average. The country average is approximately CZK 21,600 per square meter.

Standard housing unit has a water supply, proper bathroom facilities or at least a shower and proper toilet facilities.
Currently, more than four-fifths of housing units have central heating, three-thirds are connected to the sewer system and almost two-thirds have a gas supply.

Childcare

Child care http://www.expats.cz/prague/article/parents-kids/child-care-in-prague/

Babysitting

Budget: In-home sitters generally range from 90 -140 CZK an hour, with most agencies charging at least 110 CZK an hour for experienced sitters.

Private nurseries vary widely in how much they charge: anywhere from around 7,000 CZK per month for a few days a week of half-day care to upwards of 15,000 CZK per month for full-time care. 

Types of Care

In-Home Babysitting Prague has both agencies and independent sitters.  Agencies have several advantages: they are licensed and insured (as are their sitters), they can find a replacement if the sitter is sick, and they pre-screen their sitters. Expat parents have found mediocre sitters at "good" agencies and great nannies at so-so agencies. 

The expats discussion forum (http://www.expats.cz/prague/whats_new.php) frequently lists postings by and for sitters, as does the list serve for members of the International Women Association of Prague (IWAP) http://www.expats.cz/prague/czech/community/iwap/ . 

Nurseries

New child care facilities appear regularly in Prague. For children at least 6 months of age, most options are state nurseries. Your local town hall will have a list of these facilities under “jesle”. For children 12 months and up, some state nurseries offer babysitting facilities, such as Dětské Jesle also accepts one-year-olds and older children.

Tourism

Since time immemorial, the Czech lands have been the crossroads of European cultures. The cultural character of Czech cities, villages and spa towns has always been a source of inspiration to visitors and guests, who come here from all corners of the world. The tourist regions are dotted with charming towns, castles and chateaux (the most per square mile of any country in the world!),  ancient villages and, of course, many spas, all waiting to be discovered.

Golden Prague

The magical city of bridges, cathedrals, gold-tipped towers and church domes, whose image has been mirrored in the surface of the Vltava River for more than ten centuries. Prague is also a modern European metropolis full of energy, music, and art. It's a city of contrasts: Serene green isles in the river and peaceful parks draping the city's seven hills are just steps away from the architectural treasures and bustling street life of the city centre. It's a place where different architectural styles stand cheek by jowl, creating an atmosphere that's both intimate and romantic, and quite impossible to forget once you visit.

Spa towns

There are numerous mineral springs on the Czech territory which have been used for medicinal purposes since the early 15th century. Located in picturesque natural landscapes, Czech spa towns are attractive for both their urbanistic layout and their unique spa architecture. Some spa houses even boast elaborate original furnishings.

The magic castles and châteaux

The Czech lands boast an extraordinarily high number of cultural monuments. Over 2,000 preserved castles and chateaux represent an important part of the national cultural heritage, both in terms of their number and in terms of their historical and artistic value; their significance transcends national borders, and more than a few of these structures are important even in the global cultural context.

Religious sites

Religious sites and places of pilgrimage are a great part of architectural heritage of the Czech Republic. Although most of the churches, monasteries, chapels and pilgrimage places are Roman-Catholic, there also are many Jewish and Orthodox Christian sights. Religious architecture has gone through more than a thousand years' development.

Active Holidays

The Czech Republic is an ideal country for active holiday, where you can relax as well as improve your physical condition. In case you decide for relaxation, you have a choice of various wellness offers. Lovers of “adrenaline” sports will be pleased by wide possibilities of bungee jumping.

For more information see http://www.czechtourism.com

Communications and Post Offices

Privatization and modernization of the Czech telecommunication system got a late start but is advancing steadily; growth in the use of mobile cellular telephones is particularly vigorous.

The international country code is 420.

Internet country code: .cz

Internet users: 4.8 million, Internet hosts: 819,773 (2005)

Couriers & Forwarders

http://www.businessinfo.cz/en/articles/couriers-forwarders/1001078/

Major courier and forwarding service providers in the Czech Republic render delivery services within, from and to the CR. Most of the logistics companies provide also moving & relocation services that might be of use to expatriates considering relocation to or from the Czech Republic.

Association of Forwarding and Logistics http://www.sslczech.cz/

Czech Logistics Association http://www.logistika.cz/

DHL http://www.dhl.cz/

FedEx http://www.inspekta.cz/

UPS http://www.ups.com/

TNT http://www.tnt.com/

Maurice Ward & Co. http://www.mauriceward.com/

Čechofracht http://www.cechofracht.cz/

Birkart http://www.birkart.cz/

Schenker http://www.schenker.cz/

Cargo-Partner http://www.cargo-partner.com/

Currency

Currency code: CZK

The official currency of the Czech Republic is the Czech Crown (koruna), abbreviated as Kč, with the international abbreviation CZK. The approximate value of 100 CZK is 3 EUR/4 USD.

Coins: 50 hal., 1 Kč, 2 Kč, 5 Kč, 10 Kč, 20 Kč, 50 Kč   
Banknotes: 20 Kč, 50 Kč, 100 Kč, 200 Kč, 500 Kč, 1000 Kč, 2000 Kč, 5000 Kč   
Check out the exchange rates updated daily by Czech National Bank (CNB) http://www.cnb.cz/en/index.html

Currencies Accepted :

Czech Republic is not yet a part of the European Union Euro Zone and therefore paying in EUR is possible rather exceptionally (in some hotels, restaurants or stores mainly in Prague and other large cities).

Money Tips for Travellers

Always change money in a bank or take cash out of ATM machines, which are plentiful in Prague and every larger town. ATM machines are a very convenient way to get Czech crowns. You can also use your card to make payments. Major credit cards are accepted in mayor locations. The change you receive will be in Czech crowns.

Shopping basket

Czech TV’s regular program Here in Europe publicizes a survey of prices across various states of the European Union. It shows, for example, that the prices of groceries in the Czech Republic are nearly the same as prices elsewhere in Central Europe – mainly those in Poland and Hungary; however, they are incomparably lower for example than in the United Kingdom or Belgium.

Living Costs

http://www.expats.cz/prague/article/prague-relocation/cost-of-living/

The following should give you some idea of the average prices for living in Czech Republic:

All prices are, of course, variable. Most prices will deviate 20% in both directions, depending on where you shop/eat/live, and the quality of the goods or services.  Prices for accommodation and utilities will especially fluctuate.  All prices include taxes – a 19% VAT (value added tax) in most cases.

Banks

Opening hours:

Monday to Friday usually from 8 AM to 5 PM, some branch offices open on Saturdays.

All banks provide foreign exchange operations and offer an entire range of banking services:

Citibank http://www.businessinfo.cz/redir/568/

CSOB (Czech and Slovak Commercial Bank) http://www.businessinfo.cz/redir/569/

eBanka http://www.businessinfo.cz/redir/570/ Internet banking, mobile banking services.

HVB Bank Czech Republic http://www.businessinfo.cz/redir/567/

Komerční banka http://www.businessinfo.cz/redir/571/

Živnostenská banka http://www.businessinfo.cz/redir/572/

Czech Export Bank http://www.businessinfo.cz/redir/539/ Provides state - supported export financing.

Czech National Bank http://www.businessinfo.cz/redir/500/ Provides the official data and information on financial and economic situation of the Czech Republic, analytical reports and financial statistics. Issues daily official exchange rate of Czech koruna (Czech national currency) to other currencies.

Czech-Moravian Guarantee and Development Bank http://www.businessinfo.cz/redir/514/

provides assistance to small- and medium- sized enterprises.

Cuisine

http://www.myczechrepublic.com/czech_culture/czech_cuisine.html

Although Czech cuisine is not the best choice for vegetarians, everybody will most likely find at least a couple of meals "to die for". It may be the potato soup, the traditional roast pork with dumplings and sauerkraut, the fruit filled dumplings, or the apple strudel. Czech cooking and eating habits have been shifting in the general direction of a healthier lifestyle, but traditional Czech recipes are still extremely popular - and those tend to be high in calories, fat and sugar. Sauces and condiments are popular. Czech meal is often accompanied by the national beverage, which is beer.

For restaurants in Prague see: http://www.pragueexperience.com/restaurants/restaurants.asp

Moving animals and plants, Pets

Veterinary doctors can be found at the Zlaté stránky directory http://zlatestranky.idnes.cz/

The non-commercial transfer of animals in the EU in cases where these animals are used for special breeding purposes (dogs, cats, and ferrets) is possible between EU Member States or from a third country to the EU only if:
- the transported animals do not show any signs of disease;
- they are tattooed or have had a microchip inserted for purposes of identification;
- they are vaccinated against rabies, and revaccinated every year;
- they have been vaccinated against distemper (this applies to dogs only);
- they are accompanied by an individual certificate which enables them to be clearly identified.

Transported animals under three months old must not show any signs of disease, must be accompanied by an individual certificate enabling their clear identification.
They must not be a breed which is subject to measures restricting their movement.

CITES

The import, export and re-export of protected species of flora and fauna, both living and dead, is only possible on the basis of an authorisation given by the Ministry of the Environment CR (http://www.env.cz/).

Useful links and addresses:

http://www.myczechrepublic.com/

http://www.expats.cz/ International portal

http://www.en.domavcr.cz/ Helping foreigners to find a home in CR

http://www.czech.cz/ The official website of the Czech Republic

http://www.pragueexperience.com/ Guide for Prague events

http://www.mvcr.cz/ Ministry of Interior of the Czech Republic

http://www.cs.mfcr.cz/cmsgrc/ Czech Customs Administration

http://www.svscr.cz/ State Veterinary Administration of the Czech Republic

(Portal on Learning Opportunities throughout the European Space: http://europa.eu.int/ploteus/portal/ ).

http://portal.mpsv.cz/sz

http://www.hotjobs.cz/

Academic Information Agency http://www.dzs.cz/

Centre for Higher Education System (http://www.csvs.cz/).

Information guide for foreign nationals residing with their children in the Czech Republic:

http://www.mzcr.cz/data/c2166/lib/Pruvodce_zdravotni_peci_o_deti_ENG.pdf ale odkaz asi nefunguje

http://www.mzcr.cz/; http://www.czech.cz/;

http://www.czech.cz/en/basic-facts/health-and-health-care/healthcare-system/receiving-health-care/

http://www.msmt.cz/uok/ru_list.php?lang=en&dl=en

Application procedure for recognition of professional qualifications

http://www.msmt.cz/uok/procedure.php?sec=postup&w=1

http://www.czech.cz/

http://www.myczechrepublic.com/

http://www.en.domavcr.cz/rady.shtml?x=157143 Home in the Czech Republic

This Website should facilitate the foreigner’s living in the Czech Republic. You can find here a number of practical advices for living, but also interesting news from the societal life of communities living in the Czech Republic.