If you are self-employed in the Czech Republic, 2026 has already brought a lot of questions about monthly payments. Now, there is an important update: the minimum monthly social security advance for self-employed people will be reduced retroactively.
The change affects both self-employed people who file a regular tax return and those who use the flat tax regime.
What is changing?
At the beginning of 2026, the minimum monthly assessment base for self-employed people increased from 35% to 40% of the average wage. This was part of the consolidation package.
The new amendment cancels this increase and brings the assessment base back to 35% of the average wage. In practice, this means that the minimum monthly social security advance will decrease from 5,720 CZK to 5,005 CZK.
The change will apply retroactively from the beginning of 2026. This means that if you have already paid higher advances for the first months of the year, the difference will be treated as an overpayment.
When will the lower payments start?
The amendment has been signed by the president and should take effect in July 2026.
From then on, self-employed people paying minimum advances should be able to lower their monthly social security payment to 5,005 CZK.
What happens to the overpayment?
If you paid the higher amount from January 2026, you will have overpaid your social security advances.
Self-employed people outside the flat tax regime can either ask the Czech Social Security Administration to use the overpayment for future advances, or request a refund after the end of the year. The overpayment should be returned within 60 days after submitting the request.
What if you are in the flat tax regime?
The change also affects self-employed people in the flat tax regime.
For those in the first flat tax band, the monthly flat tax payment should decrease from 9,984 CZK to 9,162 CZK. This is because the social security part of the flat tax payment is also reduced.
If you are in the flat tax regime, you may use the overpayment to lower your future monthly flat tax payments during 2026. However, this discount can be used only once. In other words, if you reduce your upcoming payments by the overpaid amount, you cannot claim the same overpayment again later.
If you do not use the overpayment during the year, you can request its return through the annual settlement with the Financial Administration.
Does this affect health insurance?
No. This change concerns social security payments. Health insurance advances are not reduced by this amendment.
Why does it matter for expats?
For many foreigners working as freelancers or sole traders in Czechia, monthly advances are one of the most confusing parts of doing business here. Even a small change can affect your cash flow, especially if you are still building your business or working with irregular income.
The good news is that the reduction should lower monthly costs for self-employed people paying minimum advances. The important thing is to check your payment setup, especially if you use a standing order in your bank account.
What should you do now?
If you are self-employed in Czechia, check whether you are paying the minimum social security advance or whether you are in the first band of the flat tax regime. If yes, you will probably need to adjust your monthly payment from July 2026.
It is also worth checking how much you have already overpaid since January and deciding whether you want to use the amount for future payments or request a refund later.
If you are not sure how the change applies to your situation, it is always best to contact the Czech Social Security Administration, the Financial Administration, or your accountant.
Source: Ministry of Finance, iDnes.cz
