Claiming Tax Benefits / Tax Deductions

Any person filing a Personal Income Tax Return (PIT) in Czech Republic is entitled to one or more of the following tax benefits / deductions / reductions, split in 2 groups:

Group 1: Tax Benefits reducing the Personal Income Taxes

• 30.840 CZK personal tax deduction
• 24.840 CZK tax deduction for a non-working spouse / registered partner (earning max. 68.000 CZK per year, taking care of child under 3)
• 15.204, 22.320, 27840 CZK per child (under 18, living in your household AND minimum (self) employment income 121.800 CZK )
• 4.020 CZK student tax deduction (not from 2024 anymore)
• 16.200 CZK Pre-school / Daycare (not from 2024 anymore)

note: exact sums depend on the tax year, and since 2024 the the tax benefits have been severely restricted or abolished.

The listed Tax Benefits reduce the Income Tax (which is calculated as 15% or 23% of your Tax Base), but are never paid out except for child benefits. Child benefits are the only benefits that are actually paid out.

Group 2: Factors lowering the Income Tax Base

There are factors that lower the Tax Base itself (not the actual Taxes), such as:

• mortgage interests (just the interests, not the entire mortgage), up to a maximum of 150.000CZK (depending on the purchase date)
• Pension payments / Life Insurance, up to 48.000 CZK
• gifts to charity (usually, only official CZ charities are acceptable), up to a mximum of 10% of your Tax Base
• Donation of Blood, 3.000 CZK

Factors lowering the tax base are cannot be applied in te same way as tax benefits mentioned above.
They lower the Income Tax indirectly, by reducing the tax base.

(Foreign) Capital Gains, Interests, Dividends, Stocks

(Foreign) Bonds, Interests, Dividens and Stocks are taxed in par. 8 and par. 10 of the PIT, but not all investments are subject to Income Tax. In fact, they may be tax-exempt (especially if owned for a few years). The general rule is: owning at least 3 years, but for some income it is 5 years (selling shares of own company, for example). Gains within the portfolio are not subject to taxation (in most cases - currency trading being an exemption).

Capital Gains taxed in par. 8 in the Czech PIT are usually Dividends or Interest on a (foreign) account.

Foreign Income (Taxation) can be quite tricky. Rental Income / Capital Gains / Dividends / Stocks may be taxed at source (abroad). In that case it is necessary to see what the Tax Treaty (if it exists) between that country and Czech Republic says and ideally, the taxes already paid abroad will lower your Czech tax burden.

Employees beware: the company (usually) does not file your Income Tax Return

Being employed at a Czech company does not mean that the company will file a Tax Return on your behalf.
In most cases, they won't. You may get the personal tax deduction in 12 parts added to your monthly income, but more often than not, spouses, childeren and other benefits are not accounted for, and so you miss out on these benefits: it can be for a 2-child family up to 80.000 CZK per year (without counting gifts, mortgage etc)!

Secondly - and this is not uncommon: When you return to your home country, your Tax Office may ask to prove that you have paid your taxes in Czech Republic. Usually the annual income statement your employer prepares is not considered official proof - an extra reason to file a Tax Return, even if there would be no tax benefit to claim. Such a Tax Return is usually accepted as official proof, although there are countries that in addition demand a proof of Tax Residence (apply for it while still in CZ!!!).

Determining if there is anything to Claim

If you expect that you did not get all benefits, we would need to see your previous Tax Returns or at least the annual salary overview provided by the employer (in case no Tax Return was filed) and we need you to fill in a questionnaire.

What is the fee for Claiming Tax Benefits?

We can determine whether it makes sense to file corrected Tax Returns for previous years.

In case it makes sense to claim, we charge the fee for filing a (late) Tax Return. This filing can be ordered seperately, after we determine if there is any benefit. If it does not make sense (the amount is too small or there is nothing to claim) we charge a 2500 CZK handling fee.

It is possible to do everything remotely, without visiting our office. You can send in your documents by mail / email / Google Drive share. In this case we will need a signed paper original Power of Attorney for filing.

Ordering the Tax Return service

The button below will redirect you to the order form.

Personal Income Tax Return

23/03/2026