Freelancers in Czechia: You have four days left to register for the flat-rate tax

Self-employed individuals have only four days left (until Jan. 10) to join the flat-tax regime. This system combines income tax, social insurance, and health insurance into a single monthly payment. Missing the deadline means waiting until next year to enroll.

For those not using the flat-tax system, minimum monthly contributions will increase by CZK 1,082 in 2025. This includes an extra CZK 907 for social insurance and CZK 175 for health insurance, bringing the total to CZK 4,759 per month.

If you're self-employed as a secondary activity and also have a job, you remain exempt from minimum health insurance payments. Otherwise, contributions are based on previous obligations.

Entrepreneurs already in the flat-rate regime will see their monthly payment rise to CZK 8,716 in 2025.

The flat-tax regime simplifies payments—you only need to pay once a month. Plus, you don’t have to file a tax return the following year.

However, it’s not ideal for everyone. Professions like craftsmen and farmers, who benefit from state tax deductions, may find it less advantageous. Participants in the regime lose access to tax discounts (e.g., for dependents or partners) and cannot claim deductions for mortgage interest, life insurance, or pension contributions.

It is also worth pointing out that many banks require a tax return when applying for a loan or mortgage. Signing up for the flat-rate regime will make proving your income more cumbersome. 

According to financial website Finmag.cz, the flat-tax system is most beneficial for high earners with few tax credits or deductions. It’s also a good option for those who want to avoid the hassle of tax calculations and paperwork.

If you used the flat-tax regime in 2024, you’ll automatically be enrolled again—unless your income has significantly changed, or you opt out.

Self-employed individuals with a data box must apply online. They need to declare their income and select the appropriate payment band. The financnisprava.gov.cz official state website, handily in English, offers a good guide.

If you don’t have a data box, you can download the application form from the tax office’s website and submit it in person. All applications, whether online or offline, must be completed by Jan. 10. Payments for the flat-tax system are due by the 20th of each month.