Don’t ignore how a move to the Czech Republic will affect your financial world.
We are increasingly getting enquiries from people who have not yet moved here and so I thought it would be good to consider what Brits should think about when they make the move.
The Czech Republic is an increasingly popular destination for British expats — whether you’re drawn to Prague’s historic charm, Brno’s tech scene, or the country’s affordable lifestyle. But alongside finding your new home and navigating the language, there’s another challenge: your financial life changes the moment you move.
From how your UK pension is taxed to whether you need Czech health insurance, this guide covers the essentials on tax, investments, and insurance for Brits relocating to the Czech Republic.
Tax Residency in the Czech Republic
You are considered a tax resident if:
- You spend 183+ days per year in the country, or
- You have a permanent home available to you.
As a resident, you are taxed on your worldwide income.
UK–Czech Double Taxation Treaty
The UK and the Czech Republic have a double taxation agreement (DTA) to prevent being taxed twice. Examples:
- UK pensions – usually taxed in the Czech Republic if you’re resident there, but UK government pensions (eg, civil service) remain taxable in the UK.
- Rental income from UK property – taxable in the UK (you still need to do a UK tax return), but must also be declared in the Czech Republic (with credit given for UK tax paid).
- Dividends from UK shares – generally taxable in the Czech Republic, with UK withholding limited by treaty.
Czech Tax Rates
- Personal income tax : 15% on income up to approx. CZK 1.9 million (~£65,000), 23% above that.
- Social security & health insurance contributions : these are fairly significant.
Expats often underestimate the role of Czech social contributions and find out the hard way, so budget for them. Learn more at https://www.cssz.cz/web/lang
UK Investments Abroad
- ISAs: Lose their tax-free status in the Czech Republic — interest, dividends, and gains may be taxable locally.
- UK investment accounts: Some platforms restrict EU residents post-Brexit.
- UK pensions: Difficult to get advice, post-Brexit, and many UK pensions do not offer the same flexibility to non-UK residents. Finding a regulated EU pension specialist is essential, ideally before you make the move, the Aisa Group can provide pensions advice both here and in the UK.
Health Insurance
- Public system: Funded by mandatory health insurance contributions; covers most residents.
- Private health insurance: Required for non-EU foreigners applying for long-term residence permits upon application. Once working here, they can apply for public health insurance.
- S1 form: Retirees with a UK state pension may access Czech healthcare via the S1 arrangement.
Aisa International are able to provide private health insurance for non-EU citizens looking to move here that complies with the requirements of the Ministry of the Interior.
Property & Liability Insurance
- If you rent, landlords may require property or liability insurance.
- For homeowners, Czech property insurance typically covers fire, flood, and theft. Liability insurance is strongly recommended.
Again, Aisa International can help with this.
Life Insurance
- UK life insurance policies are usually not available to purchase for non-UK residents.
- Local providers offer cover, and some combine life insurance with long-term savings — useful for tax efficiency if you plan to stay long-term. Aisa International can assist with this too.
Checklist
- Confirm Czech tax residency and obligations.
- Declare worldwide income if resident.
- Reassess ISAs, pensions, and other UK investments for Czech tax rules.
- Open a CZK bank account to manage daily expenses.
- Secure mandatory health insurance (public or private).
- Update property and liability insurance.
- Consider Czech pension or savings products if staying long-term.
- Consult a cross-border tax adviser if you have significant UK assets (We have access to tax advisers that provide cross-border tax advice between the UK and the Czech Republic.
Conclusion
Life in the Czech Republic offers expats a rich cultural experience, affordability, and central access to Europe — but don’t ignore how this will affect your financial world. Many require legal and immigration assistance and firms like ExpatLegal are able to provide this.
By understanding Czech tax residency rules, how the UK–Czech tax treaty works, and the local insurance requirements, you can avoid unexpected costs and keep your money working for you.
