OSVC
Being an OSVC (self-employed) in Czechia
OSVC (osoba samostatne vydelecne cinna) is the Czech equivalent of a sole trader. It is the simplest way for a foreign resident to earn on their own account here, once they hold a residence permit that allows business activity.
Registration in one visit
You register at the trade licensing office (zivnostensky urad) with your passport, residence permit, criminal record extract, and 1,000 CZK. Choose one or more free trades (volne zivnosti) or a regulated one if it fits. The same form triggers registration at the tax office, social security and your health insurer. Delivery of the trade license takes about a week.
The two ways to be taxed
There are two paths for OSVC in 2026:
- Real accounting or lump-sum expenses. You either track true costs or apply the flat expense rate for your activity (40, 60 or 80 percent of income). You file an annual income tax return, a social security statement and a health insurance statement. You pay monthly advances toward social and health.
- Flat tax (pausalni dan). If your annual income is under 2,000,000 CZK and you are not a VAT payer, you can opt into a single monthly payment that covers income tax and both insurances. In 2026 the first band is 8,716 CZK per month. Higher-income bands exist. The catch is that you lose most deductions and you cannot use the tax bonus for children.
Social and health minimums
Even on the flat expense route you pay the OSVC minimums. In 2026 the main activity minimum monthly social payment is around 4,759 CZK, and the health insurance minimum is around 3,306 CZK. First-year OSVCs pay the minimum, then catch up in year two based on actual profit.
When flat tax wins
The flat tax is usually a win for software developers and consultants billing 800,000 to 1,700,000 CZK a year in high-margin services. Below the minimum threshold or with lots of deductible expenses, the standard route can be cheaper. Run the numbers before you opt in, because you commit for the whole calendar year.