Recurring Questions

On this page we are happy to answer the questions that are more frequently asked, we have collected questions and answers, trusting to be as complete as possible. If you do not find the answer to your question, feel free to contact us .

What is a domicile for tax purposes?

Unlike a civil domicile, a domicile for tax purposes also regards subjects that are not individuals .
For individuals enrolled in the register of residents, domicile for tax purposes is in the municipality in which they are registered; for non-resident individuals, taxed on the basis of the principle of source, domicile for tax purposes is in the municipality in which the main part of their income is produced.
For those working abroad for the public administration or who have transferred residency to a country on a black list, domicile for tax purposes is in the last municipality in which they were registered for residency.
For subjects that are not individuals, domicile is established based on the following criteria, in the order in which they are listed:

– registered offices
– administrative offices
– branch or permanent organisation
– municipality in which main activity is conducted

It is established by law and usually inviolable.

What is dummy foreign company?

A dummy foreign company is the fictitious location overseas of a company’s fiscal residence, that actually conducts business and pursues its business objective in another country.
The aim of this operation is to have taxation on revenue imposed in foreign countries where taxation is usually at a lower rate.
To avoid committing the crime of forming a dummy foreign company, it is also necessary to a registered office, as well as human and technical resources located overseas.

Why the Czech Republic?

It is in a central, strategic position in Europe, with excellent services and excellent infrastructures.
– Tax regime with taxation at 19%
– It has a functional VAT recovery system with monthly deposit into current accounts, that allows greater liquidity
– Logistic advantages: it is in the centre of Europe and enjoys a continuously expanding road network
– It is one of the Eastern European countries with the most flourishing economy
– It offers all the services that you can find in Western European countries too
– The continuous flow of foreign capital creates several business opportunities
– It offers a very high quality of life
– It is not on any Black List and allows you to have public “limited companies”

Can I have residency in the Czech Republic?

It is possible to have residency, all you need to have is a rental contract and carry out some formalities at the foreigners department that the municipality you intend to reside in refers to.

Can I open a current account in the Czech Republic?

As overseas residents it is possible to open personal bank accounts. It is also possible to open current accounts for overseas companies in banks in the Czech Republic. All accounts can have debit and/or credit cards (VISA, MASTERCARD), pay in and take out cash amounts, make payments of invoices at the counter (with a daily limit for each payment of about 11,000.00€ per day for each invoice)
Online operations on computers, smartphones and tablets are possible using certificates, tokens, text messages, App etc…
Accounts can be opened in about one hour.

Can I pay cheques into a current account in the Czech Republic?

It is possible to pay in cheques from all banks in Europe. It will take about 20 days for the amount to be credited to the account subject to collection!

How far is the Czech Republic?

In most minds, the Czech Republic is still positioned behind the Iron Curtain, there…. in the Eastern countries…. but if you dedicate a moment to looking at the map, we realise that we are nearer than you thought or imagined and that it is easy to get to by car from any European capital, as well as by train or plane.