How much do you actually keep? Find out in 10 seconds.
If you're freelancing in Czechia (or considering it), understanding the OSVČ system is essential. Unlike an employee whose employer handles deductions, a Czech freelancer must manage three separate obligations: income tax (15%), social security (29.2% of half the tax base), and health insurance (13.5% of half the tax base). The good news: you can deduct expenses either by keeping records or by applying a flat-rate expense deduction (výdajový paušál).
The expense flat-rate lets you deduct a percentage of your revenue as expenses without keeping receipts — 60% for IT and consulting, 80% for trades. You then pay tax and insurance on the remaining taxable base, and can still claim the standard taxpayer deduction (30,840 Kč/year in 2026).
The lump-sum tax (paušální daň) bundles tax, social security, and health insurance into one monthly payment. No tax return needed. Great for high-margin work (consulting, IT), but you lose the ability to claim additional deductions or reclaim overpayments.
The social security rate for OSVČ is significantly higher than for employees (who pay only 6.5%, with the employer covering 24.8%). As a freelancer, you bear the full 29.2% contribution. This is why strong cash flow discipline is critical: always set aside reserves from every invoice to cover the mandatory minimums and the annual settlement.