If you’re a freelancer in Czechia, choosing the right tax regime is one of the most important financial decisions you’ll make.
But for many expats, the terms “paušální daň” (Flat Tax Regime) and “paušální výdaje” (Flat Expenses under the Standard Regime) can sound like the same thing — and create a lot of confusion.
So, which one is better? Here’s what you need to know to make an informed decision.
What Is the Flat Tax Regime (Paušální Daň)?
The Flat Tax Regime is a simplified option where you pay a fixed monthly amount that covers:
Income tax
Public health insurance
Social security contributions
No tax return needed One monthly payment No deductions or credits allowed
Your monthly amount depends on which band (pásmo) you fall into. This is based on your income and the type of activity you do (e.g., craft, professional, services).
But beware — you must meet all the eligibility conditions, including:
Being a Czech tax resident
Having no employment income
Not being a VAT payer
Having under CZK 50,000 in other income (like rental or capital gains)
You must register by January 10 to enter the regime for the current tax year.
See full list of conditions in our free guide →
What Is the Standard Regime?
The Standard Regime (with flat expenses or actual expenses) is the traditional model.
You file a full annual tax return You submit yearly reports to insurance authorities You can claim tax credits and deductions, such as:
Child tax credit
Mortgage interest
Pension contributions
You also choose one of the flat expense rates:
80% for crafts/agriculture
60% for standard business
40% for professional services
30% for rental income
The Standard Regime is often more favourable if you have dependents or large expenses, or if you are just starting and expect only a small turnover.
So, Which One Saves You More?
That depends on:
Your total income
Whether you have children or a non-working spouse
If you want to avoid paperwork or optimize deductions
Your activity type (40% vs 80% matters a lot!)
The closer you are to the maximum band income under the Flat Tax Regime, and the fewer deductions you claim, the more likely it is to be worth it.
But remember:
Once you join the Flat Tax Regime, you can’t switch mid-year — only at the start of the next tax year. So make your choice wisely.
Still Not Sure?
Most expats struggle with this exact decision — and many lose money simply because they guessed instead of calculating.
If you want this full breakdown — plus even more details — in a downloadable PDF, you can grab the free Mini Guide: Flat Tax vs. Standard Regime right here:
Want to go deeper?
My full Czech Freelancer Starter Kit walks you through: How to register your trade license What to submit to insurance and tax offices What monthly, quarterly & yearly obligations to follow What your invoice should look like How to track your income correctly BONUS: A side-by-side financial comparison of Flat Tax vs. Standard Regime for 5 different income levels
Perfect if you’re looking to start freelancing in Czechia with confidence — and without surprises.
