All foreigners other than EU nationals and citizens of Iceland, Norway, Liechtenstein, and Switzerland who wish to take up employment in Prague have to obtain a work permit. The employer has to make the first step by registering the vacancy at the district public employment office in Prague. Work permits are issued only for a particular position and a pre-determined period. The vacancies open to blue card applicants and those for employee card applicants are organized in an online portal.
Processing of work permit applications usually takes around four weeks, sometimes two months. Expats moving to Prague to take up employment need to successfully apply for a work permit before a long-term employment visa can be issued.
Work permits for a mere transfer to a Prague branch of a foreign company are slightly easier to obtain than those for positions at Czech companies. Czech employers are required to prove that a position cannot be filled by a Czech or EU citizen, before a work permit for a third country national is issued.
In addition to regular visas and work permits, the Czech Republic also offers two kinds of long-term permits which serve both purposes at once: the blue card and the employee card. For more information, please see our article on moving to the Czech Republic.
Thanks to the free movement of workers within the European Union, citizens of other EU member states do not need a work permit for jobs in the Czech Republic. They are, however, required to register with the alien and border police after 30 days.
Those intending to stay more than three months no longer need to apply for the right of residence in Prague, but they are eligible for a certificate of temporary residence should they want or need one. In order to be granted this certificate, expats have to prove that they possess sufficient funds to support themselves, have adequate health insurance, and have accommodation.
While working in Prague, expats are subject to Czech income tax. Those who stay in the country for 183 days or more during a calendar year are considered residents for tax purposes. Tax residents pay income tax on their worldwide income, while non-residents are taxed only on income sourced from the Czech Republic. There is a flat tax rate of 15% on all sources of income.
The Czech Republic has concluded double taxation treaties with over 80 countries worldwide. These treaties make sure that nationals from these countries are not taxed on the same income twice.
The Czech Republic has a fairly extensive social security system. It includes old-age pensions, sickness and maternity benefits, unemployment benefits, and public health insurance. Additionally, there is a statutory accident insurance.
Benefits are financed through a system of mandatory contributions. Both the employer and the employee are liable to pay, although the employer bears the bulk of the costs. The insurance rates for social security (excluding health insurance) are as follows: employees pay 12.5% of their gross salary, while their employers contribute 35%. For possible exemptions applicable to short-term workers in the Czech Republic, check the Ministry of Labor and Social Affairs.
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