Company Formations in Czechia
Interesting facts about Czechia and general conditions for Company Formations in Czechia
Czechia is located in Central East Europe and became an EU member in 2004. Since then, the tax framework has been altered from a flat tax to a progressive tax system. However, the CIT tax rate (Corporate Income tax) is currently at 19% with a WHT (Withholding Tax) of 15% for dividends for residents and non-residents, whereas interest and royalty are tax-free. Dividends, Royalties, and Interest paid to related EU-resident companies are not subject to WHT if certain conditions are met.
Additionally, there is a special tax regime for entrepreneurs with a tax of just 15% minus deductibles. This will lead to an effective tax rate between 6% and 9% in some cases, but it is capped at a maximum income. Hence, there are good conditions for company formations in Czechia.
The labor market is good, and the workforce is affordable.
Furthermore, one can enjoy reasonable living costs and low housing costs if living in a hot spot is not required. Hence, numerous international companies are already doing business in and from Czechia. More and more firms and entrepreneurs are hearing about the benefits of company formations in Czechia and setting up subsidiaries and branches in Czechia.
The banking sector is stable, and there is a good choice of local and international banks, so banking is not an issue.
Our experienced and highly qualified international tax and legal advisors will review your company structure, existing management, and mandate contracts. We also offer a review of your contractual arrangements at home and abroad. In addition, our tax and accounting department will be pleased to take care of your bookkeeping and tax returns.
Why not work with us? We offer company formations in Czechia at a fixed price of 1.680,00 € net all-in. Enjoy our fast, reliable, and competent approach in your native language (German, English, French, Czech, Slovak, Greek, Russian)!
Ideal Tax Framework for Transport Companies
Before joining the European Union, Czechia introduced a modern tax framework. However, until nowadays, there is no regime for group taxation in place. Czech legislation thus today fulfills all relevant EU standards, EU regulations, the OECD standards, the FATF, and the FSF.
Czech companies are recognized throughout the European Union as EU companies with an extensive Tax Treaty Network. This circumstance is used mainly by holding companies. Czechia nowadays has one of the most favorable Tax Regimes in Central Europe and competes within the EU with Slovakia and Poland at a split of the cost.
Why not speak to us about the advantages of a transport and logistics structure?
What you need to consider if relocating to Czechia
A long-term stay in a country for more than 183 days will usually (and automatically lead) to an unlimited tax liability for your world income. Some countries go even further and already assign this tax liability if you can permanently use your apartment (this can even be the room in your parent’s house or a regularly visited hotel), which you can access with your keys – known as “Schlüsselgewalt” in German-speaking countries. This rule establishes or maintains an unlimited Tax liability for your world income. If this subject interests you, you may learn more about it on our dedicated website for Taxation.
The often cited and, in general, used “183-Days Rule” is not entirely correct. It can only be used to a limited extent, as few countries (Germany) consider a personal tax liability if one spends more than 183 days within the country in two consecutive years spanning two tax periods.
Therefore, one can only advise people interested in relocating their place of residence not to rely on start-up agencies and other jokers—the pitfalls are simply too great, and sound advice is required. A few advisors (specialized lawyers, accountants) study tax law for years, while others do a weekend seminar or attend Google University—where do you feel better off?
What’s on offer on the internet is fantastic. Believe us – there is no point in having no tax residency/residence anywhere. If in doubt, you never gave up your original tax liability (in your country of birth) or are automatically subject to tax through your passport.
If you plan to form a company in Czechia, it makes sense to discuss your relocation in detail.
TOP Jurisdiction for EU Residence in Central-Europe
Czechia, however, offers ideal conditions for a tax residence. To obtain a tax residence, one must stay more than 183 days in Czechia. With close links to other European countries, good flight connections, and travel times of roughly two hours into the center of Europe, this is an ideal place to conduct business of any kind.
Of course, you cannot stay in any other country for more than 183 days, which would trigger an unlimited tax liability there. This concept is, therefore, ideal for everyone who can live and work flexibly (e.g., digital nomads).
You can rely on well-founded and legally sound advice if you come to us. Together, we will find your ideal life concept.
To receive a detailed offer or placing an order, please fill out the form down below for Company Formations and we will get back to you shortly!
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