Proof of funds for Czech Business visa renewal

If you hope to extend your business visa or long-term residency in 2025, make sure that you don’t forget about any income invoicing for your annual tax report 2024, such as freelance income, capital gains, cryptocurrency income, etc...

Your proof of income will be your annual tax report for 2024 for your visa extensions in 2025! The Immigration office has a fixed income calculation. If you are single and have no children, your final monthly income should be at least 30 000 CZK (approximately net income, according to your annual tax report for 2025.

For family couples or families with children, clean income calculations are as follows.

According to Government Regulation No. 450/2022 Coll. , the amount of the subsistence minimum for an individual is 4 620 CZK.

The amount of the subsistence minimum of a person who is determined to be first in order is CZK 4 470 a month.

The monthly amount of the subsistence minimum of a person who is determined to be second in order is;

CZK 4 040 for a person over 15 years, who is not a dependent child,

CZK 3 490 for a dependent child from 15 to 26 years,

CZK 3 050 for a dependent child from 6 to 15 years

CZK 2 480 for a dependent child under 6 years.

The highest amount of normative costs for housing since October 1st, 2023 according to Government Regulation No. 449/2016 Coll. is:

CZK 17 298 for one person or two people in a family

CZK 19 865 for three people in a family

CZK 23 984 for four, and more people in a family

Also as an expense, You should add CZK 4 759 for social tax monthly and VZP Health insurance CZK 3 143 (if you have a Czech public health insurance) monthly in 2024. These 2 amounts are minimum deposits, so if your income has been higher and caused an increase in your monthly deposits, you shall consider those amounts instead!

For example, you are a family of US citizens living in the Czech Republic, you, your spouse, and 4 year old child. Your clean income should be as follows:

Subsistence minimum 10 990 CZK + Costs for housing 19 865 CZK + 4 759 CZK minimum social tax deposit + 3 143 CZK for minimum health insurance deposit = 38 757 CZK

So the amount 38 757 CZK shall be the minimum of your family’s monthly income according to the immigration office calculation for the year 2025. And amount 38 622 CZK x 12 months = 465 084 CZK, which should be your minimum net annual income after income taxes + penalties for delayed payments of social and potentially also public health insurance for 2025.

Please note that the example calculation above is based on the minimum income and minimum tax expenses. Your final calculation might be different, depending on your family's situation and your total gross income for the entire year.

Calculate your taxes & contributions to see your net income

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Currency

Gross income

​CZK

Per year

Gross income

Tax Method - 60/40 learn more...

Have children

Spouse’s income under CZK 68,000

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The Czech trade license holders can choose various types of taxation methods. Method 60/40 is the most common. The collection of payment receipts or invoices from expenses is not necessary. It means, there is a fixed 60% cost allowance and 40% is considered a clean or “net” income.

Income tax for freelancers is 15% of net income and there is an additional 30 840 CZK tax discount given to everyone with a trade license.

For example, if the total gross income for last year was 300 000 CZK, then 300 000 – 60% cost allowance (fixed expenses) = 120 000 clean income. 15% tax will be paid from 120 000 which means 120 000 - 15% = 18 000 CZK (tax amount) - 30 840 (tax discount) = 0 CZK (final tax amount).

In this example, taxes will not be paid. This method is convenient and the best solution for EU citizens and their NON-EU family members who don't need to have Czech business residence or visa.

We don’t recommend this method for other nationalities, who need to renew their visas or residency permits in the future, because they may end up with low “net” income (40%), which may not cover their monthly expenses calculated by the Immigration Office. Not being able to prove income leads to visa and residence extension rejections.