What is a Trade Licence (živnostenský list)?
A Trade Licence authorizes you to conduct business activities in the Czech Republic as a self-employed person (OSVČ — osoba samostatně výdělečně činná).Fee: 1,000 CZK (registration) Processing: Same day to 5 business days Legal basis: Trade Licensing Act No. 455/1991 Coll. Where to apply: Trade Licensing Office (Živnostenský úřad) Validity: Indefinite (while you maintain the licence) 1. Free trades (volné živnosti) — No special qualifications needed (IT, consulting, marketing, etc.) — 80+ activities in one licence 2. Regulated trades (vázané živnosti) — Require specific education/certification 3. Craft trades (řemeslné živnosti) — Require apprenticeship or relevant education
Key facts:
Three types of trade licences:
For non-EU nationals: Business residence permit
If you are a non-EU citizen, you need BOTH:1. A valid residence permit (Employee Card, Long-term visa for business, or PR) 2. A Trade Licence You must first register your Trade Licence Then apply for a Long-term visa for business (vízum k podnikání) Or switch from Employee Card if eligible Business plan may be required Proof of sufficient funds: ~2x the subsistence minimum
To apply for a Business Residence Permit:
EU citizens only need the Trade Licence itself — no separate residence permit needed.
How to register a trade licence
Step 1: Visit the Trade Licensing Office (Živnostenský úřad)
Any municipal Trade Licensing Office in the Czech Republic — you don't need to go to your local one.Personal information Business activities (choose from the list of free, regulated, or craft trades) Business address (registered office — can be a virtual office) Valid passport or ID Proof of accommodation/business address Criminal record (for non-EU nationals) Proof of qualifications (for regulated/craft trades) Receipt of 1,000 CZK payment Tax office registration: Within 15 days Health insurance (VZP or others): Within 8 days Social insurance (ČSSZ): Within 8 days
Step 2: Fill out the registration form
Step 3: Submit documents:
Step 4: Receive your IČO You'll get your Business ID (IČO) within 5 days. This is your business registration number.
Step 5: Register with tax office and health/social insurance
Taxes and obligations for OSVČ
Key tax obligations:Income tax: 15% flat rate (up to ~1.9M CZK income, then 23%) Flat-rate tax (paušální daň): 7,498 CZK/month (2026) — covers income tax + social + health insurance for income up to 2M CZK VAT: Required if turnover exceeds 2M CZK/year (register as plátce DPH) Tax return deadline: April 1 (or July 1 with a tax advisor) 1. Actual expenses — Keep all receipts, deduct real costs 2. Flat-rate expenses — Deduct a percentage of income automatically:
- 80% for craft trades
- 60% for other trades
- 40% for regulated professions
- 30% for rental income
Expense deductions — two methods: