Czech Trade Licence (Živnostenský list): Complete Guide 2026

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

To apply for a Business Residence Permit:

• 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

EU citizens only need the Trade Licence itself — no separate residence permit needed.

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.

Step 2: Fill out the registration form

• Personal information
• Business activities (choose from the list of free, regulated, or craft trades)
• Business address (registered office — can be a virtual office)

Step 3: Submit documents:

• 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

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

• Tax office registration: Within 15 days
• Health insurance (VZP or others): Within 8 days
• Social insurance (ČSSZ): Within 8 days

Key tax obligations:

• Income tax: 15% flat rate (up to ~1.9M CZK income, then 23%)
• Flat-rate tax (paušální daň): a single monthly payment covering income tax, social and health insurance for sole traders under the turnover limit. We do not publish the monthly amount or the limit — both change annually and neither is verified against financnisprava.gov.cz.
• VAT: Required if turnover exceeds 2M CZK/year (register as plátce DPH)
• Tax return deadline: April 1 (or July 1 with a tax advisor)

Expense deductions — two methods:

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