How to Open OSVČ in the Czech Republic: A 2026 Guide for Israeli Freelancers
Updated: Oct 1
All articles in: Business in the Czech Republic | All topics
Updated: September 2026
OSVČ stands for osoba samostatně výdělečně činná, meaning a person carrying out independent gainful activity.
For an Israeli freelancer, OSVČ is only one part of the picture.
The business registration and the right to live and work in Czechia are separate questions.
IČO is not a visa
Obtaining an IČO or registering a trade does not automatically give an Israeli citizen the right to reside and work in Czechia.
Third-country nationals must consider their immigration status alongside the business registration.
Choose the correct activity
Many freelancers use a volná živnost, meaning an unqualified trade where no special professional qualification is required.
But not every activity falls into that category.
The business activity should be described according to what the person actually does, rather than by simply translating the name of an Israeli profession.
Business address
An OSVČ needs an appropriate business address.
This may sometimes be the entrepreneur's home address or another registered address, depending on the circumstances.
The right to use the address should be documented.
Health insurance
For 2026, the minimum monthly advance for health insurance for OSVČ is 3,306 Kč in the standard minimum-base situation.
Different rules can apply depending on whether the activity is main or secondary.
Social insurance
For a main-activity OSVČ, the minimum social-insurance advance changed during 2026.
From 1 July 2026, the standard minimum is 5,005 Kč per month.
Newly starting OSVČ can fall under special rules, so the standard minimum should not automatically be applied to every new entrepreneur.
VAT
VAT registration rules changed from 2025.
Turnover is now monitored by calendar year, with two important thresholds: 2,000,000 Kč and 2,536,500 Kč. The date from which VAT-payer status begins depends on which threshold is exceeded and the applicable rules.
This is an area where current accounting advice is important.
Income tax
An OSVČ can generally work with actual expenses or, where eligible, statutory expense percentages.
The correct method depends on the activity and the entrepreneur's circumstances.
OSVČ versus s.r.o.
OSVČ can be suitable for a solo professional with straightforward activity.
An s.r.o. may be more appropriate where there are partners, employees, larger contracts, greater commercial risk or a need for a separate corporate structure.
There is no universal answer.
The correct order
For an Israeli freelancer, think of the process as:
immigration status → business activity → trade registration → address → tax → health/social insurance → accounting
Not:
IČO → move to Prague → figure everything out later.
A-Z GRP
A-Z GRP helps Israeli entrepreneurs coordinate the practical side of establishing business activity in Czechia and connect with Czech accountants, tax advisers and immigration professionals.
The business registration is only one part of becoming established here.
