The Czech Republic has introduced a Digital Nomad Visa in July 2023 to attract skilled remote workers and freelancers. This one-year visa can be extended and aims to address the country's IT professional shortage while providing an affordable and culturally rich destination for digital nomads from eight select countries.

Europe's New Remote Work Visa Welcomes Highly Skilled Applicants

In a bid to attract highly skilled remote workers, the Czech Republic has recently unveiled its Digital Nomad Visa, officially launched in July 2023. This innovative visa program offers freelancers and remote employees the opportunity to work within the country for a duration of one year.

The Czech Republic's primary objective with this initiative is to entice proficient IT professionals to contribute their expertise to its workforce. Eligibility for this visa is extended to citizens from eight specific countries, namely Australia, Canada, Japan, New Zealand, South Korea, Taiwan, the United Kingdom, and the United States.

Understanding the Czech Republic's Digital Nomad Visa

The Czech Republic has introduced an innovative digital nomad visa program designed to expedite the process of securing a long-term stay in the country. This initiative is aimed at addressing a critical shortage of highly skilled IT professionals and stimulating economic growth.

This visa is open to two categories of applicants:

• Remote Employees: Individuals who are employed by foreign companies that permit remote work.

• Freelancers: Self-employed professionals looking to provide services to Czech companies on a contractual basis.

For freelancers to be eligible, they must obtain a Czech business licence, which authorises them to offer their services to the companies under contractual arrangements. This comprehensive approach seeks to attract and retain talent while facilitating a flexible and productive work environment within the Czech Republic.

The Cost and Duration of the Czech Republic's Digital Nomad Visa

Obtaining the Czech Republic's digital nomad visa comes with specific details regarding its cost, duration, and associated requirements:

• Visa Fee: The visa application incurs a fee of CZK 2,500, equivalent to approximately €104. 

• Initial Validity: Initially, the visa grants a one-year stay in the country.

• Residence Permit: After the initial year, applicants are required to apply for a residence permit, which extends their stay for an additional two years. To secure this permit, individuals must also complete an adaptation-integration course.

• Processing Time: The processing time for visa applications is set at 45 days.

• Tax Residency: If you spend more than 183 days within the Czech Republic in a single year, you will be considered a Czech tax resident. The tax you owe is subject to the double taxation rules in place between the Czech Republic and your home country.

Prior to the introduction of the digital nomad visa, self-employed foreigners in the Czech Republic typically pursued the one-year 'zivno' business visa. However, this prior route necessitated obtaining a trade licence and maintaining a bank account balance of 124,500 CZK (approximately €5,160).

Eligibility for the Czech Republic's Digital Nomad Visa

The Czech Republic's digital nomad visa is accessible to individuals from eight specific nationalities: Australians, Canadians, Japanese, New Zealanders, South Koreans, Taiwanese, British, and Americans.

To qualify for this visa, applicants must meet certain criteria

• Educational or Work Experience

Applicants should hold a university degree or higher in the fields of science, technology, engineering, or mathematics (STEM), or they should have accumulated a minimum of three years of work experience within the IT industry.

• Income Requirement

Remote employees, employed by foreign companies, must meet a minimum income threshold of CZK 60,530 (equivalent to €2,507) per month. This income requirement is set at 1.5 times the gross average salary in the Czech Republic. Additionally, their employing company must have a workforce of at least 50 employees.

• Inclusion of Family Members

The visa program also extends to the immediate family members of the primary digital nomad visa applicant. This includes spouses, registered partners, and minor or dependent children of any nationality, who can obtain a residence permit when applying alongside a qualifying digital nomad visa applicant.

This comprehensive approach to eligibility ensures that the program attracts skilled professionals while also providing options for family members to accompany the primary applicant.

Is the Czech Republic an Ideal Destination for Digital Nomads?

The Czech Republic consistently ranks among the top choices for digital nomads, frequently securing a spot in the top 10 of various rankings. Notably, in the previous year, it claimed the ninth position on KAYAK's Work from Wherever Index.

Several factors contribute to the Czech Republic's appeal for digital nomads:

• Affordable Living Costs

The country boasts remarkably affordable living expenses. For instance, the average monthly rent for long-term apartment stays hovers around just €389, and one-way train tickets can be acquired for under €1.

• Prague's Attraction

While the capital city, Prague, may be relatively more expensive, it still offers a high standard of living at reasonable prices. Moreover, Prague provides a rich cultural experience, with inexpensive beer, vibrant nightlife, and an abundance of museums, galleries, and parks to explore.

• Natural Escapes

Nature enthusiasts will find solace in the Bohemian Switzerland National Park, characterised by stunning rock formations, which is less than a two-hour drive from Prague.

• Efficient Transportation

Prague's strategic location ensures excellent connectivity within the country and across Europe. The availability of night trains, such as the one to Zurich via Frankfurt and Basel, facilitates easy travel.

In sum, the Czech Republic's combination of affordability, cultural richness, and accessibility make it a highly attractive destination for those pursuing a digital nomad lifestyle.

FAQS

What is the Czech Republic's Digital Nomad Visa?

The Czech Republic's Digital Nomad Visa is a recently introduced program designed to attract highly skilled remote workers, particularly those in the IT industry. It offers an opportunity for freelancers and remote employees to live and work in the Czech Republic for an initial one-year period, with the possibility of extending their stay.

Who is eligible for the Czech Republic's Digital Nomad Visa?

Eligibility is open to nationals of eight specific countries: Australia, Canada, Japan, New Zealand, South Korea, Taiwan, the United Kingdom, and the United States. 

Applicants should have a university degree in STEM fields or three years of IT industry work experience. Remote employees must meet a minimum income requirement, and their employing company should have at least 50 employees.

How much does the Czech Republic's Digital Nomad Visa cost?

The visa application fee is CZK 2,500, which is approximately €104.

What is the initial validity of the Digital Nomad Visa?

The initial visa validity is for one year. After this period, applicants can apply for a residence permit, which can extend their stay for an additional two years.

What are the tax implications for digital nomads in the Czech Republic?

If you stay in the Czech Republic for more than 183 days within a year, you may be considered a Czech tax resident. The specific tax you owe depends on your home country's double taxation agreements with the Czech Republic.

Can family members accompany Digital Nomad Visa holders?

Yes, spouses, registered partners, and minor or dependent children of any nationality can obtain a residence permit to accompany the primary digital nomad visa applicant.

Why is the Czech Republic an attractive destination for digital nomads?

The Czech Republic offers an attractive destination for digital nomads due to its affordability, including low living costs and accessible transportation. Prague, the capital, provides a high standard of living with a rich cultural scene, affordable beer, and numerous attractions. Nature enthusiasts can also explore nearby national parks.

How long does it take to process Digital Nomad Visa applications?

Visa applications are typically processed within 45 days.

What was the primary motivation behind launching the Digital Nomad Visa in the Czech Republic?

The primary motivation was to address the shortage of highly qualified IT professionals in the country and stimulate economic growth by attracting skilled remote workers and freelancers.