As an expat living in the Czech Republic, you need to pay attention to which discount categories apply to you because many apply only to Czech residents.
Tax season can be difficult – but not with the right advice
Which are the tax discounts that can be claimed by anyone regardless of their residentship? There are two:
Students who are studying at a secondary or higher education institution can claim a deduction of CZK 335 for each month up to the age of 26, or age 28 for full-time doctoral studies.
A taxpayer discount is a basic tax relief that can be claimed by anyone with taxable income. It is available to all employees and self-employed, but also to working students, pensioners and women on maternity leave. The tax discount provides for CZK 30,840, or CZK 2,570 per month.
The rest of the tax discounts can only be claimed by 2 groups of expats: an Expat who is an EU citizen having 90% of his world income coming from the Czech Republic or an expat who is a resident of the Czech Republic. For these two groups of expat taxpayers, the list of tax discounts is much longer:
Pension insurance, supplementary insurance, savings
Child tax deduction
Gift / Donation
Trade union contributions
Examinations to verify the results of your further education
How do I know the status of my residency?
The issue of an expat’s residency is complex. A tax resident is someone who is domiciled in the Czech Republic for tax purposes. This can be affected by your permanent home address, your income and the time you spent in a given country. We would recommend consulting an expert as the safest way to resolve your situation.
- I moved here last year with my family from Ukraine. I have been working here since February 2022, what discounts am I entitled to?
You are required to be a resident of the Czech Republic, you will be entitled to all discounts.
- I have been working in the Czech Republic since February 2022, but my family still lives in Ukraine. What discounts am I entitled to?
Your centre of interest is in Ukraine, you cannot claim the children and spouse discount on your taxes in the Czech Republic.
- I’m a freelancer in the Czech Republic, working in IT here since February 2022. What credits am I entitled to? I live here alone.
You are a resident of the Czech Republic, therefore eligible for all tax credits.
To put it simply, getting your tax return or determining whether you are eligible for a tax discount can get a bit complicated and owerhelming. As the tax situation is different almost for every person, it is better to consult it with a specialist to make sure you don´t miss out. Would you be interested – Neotax will walk you through the world of taxes. Arrange a consultation 10 % discount with promocode “Foreigners10”