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Withholding tax in Czech Republic 2026
The Czech Republic withholds 15% on dividends, interest, royalties and service fees to non-residents — but 35% if the recipient's country has no treaty, no information exchange, and isn't in the European Economic Area (EEA).
EEA residents can refile: declare the income, deduct real expenses, credit the withholding and claim the difference back.
At a glance
- top rate
- 35% (non-treaty, non-EEA recipients)
- entry band
- 5% on financial-lease payments
- tax year basis
- Withheld when paid
- filing deadline
- Usually final; EEA residents may opt to file
- residency basis
- Czech-source payments to non-residents
- regime flag
- From 2026, non-resident board members' pay is ordinary salary, not withholding
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 15% | Gross | Dividends, interest, royalties, Czech-performed services — treaty rates take priority |
| 35% | Gross | Same income paid to residents of non-treaty countries outside the European Economic Area (EEA) |
| 5% | Gross | Financial-lease payments with a purchase obligation |
| 10% / 1% | Gross | Securing withholding on other income of non-EEA residents (1% for investment-instrument sales) — on account |
| 15% / 23% scale | Salary | Employment in the country — including statutory-body members from 2026 |
Thresholds & allowances
- Short-stay exemption183 days
Pay from a foreign employer without a Czech base, for work under 183 days in 12 months, is exempt
- EEA refund routeOptional filing
EEA residents can file, deduct expenses and recover excess withholding
Residency
Residency trigger
Residents see withholding only on bank interest and Czech dividends (final 15%); everything else runs through the return.
Non-resident treatment
Non-residents keep the basic personal credit; the full menu of credits opens to European Economic Area (EEA) residents with 90%+ Czech income; capital gains on Czech companies and real estate remain taxable regardless.
Notes
- International hiring-out of labour makes the Czech economic employer responsible for payroll withholding.
- Czech-source pensions to non-residents follow the general rules, including the CZK 806,400 exemption.
- European Union rules for faster withholding-tax refunds — Faster and Safer Relief of Excess Withholding Taxes (FASTER) — apply from 2030; the Czech Republic has not yet transposed them.
FAQ
What does the Czech Republic withhold on payments abroad?
15% on dividends, interest and royalties — 35% for recipients in non-treaty countries outside the European Economic Area (EEA); financial leases carry 5%.
Can foreign recipients reclaim withholding?
EEA residents can — by filing a Czech return, deducting actual expenses and crediting the 15% withheld, with any surplus refunded.
Figures: tax year 2026, compiled from public sources. Not tax advice.