Trade / What you need to know as Freelancer

Typical Freelance Professions in Prague

  • Freelance Consultant (usually Finance, Telecom or IT related)
  • Freelance English Teacher (increase your chances with a TEFL certificate)
  • Freelance Webdesigner
  • Freelance Graphics Artist
  • Freelance Programmer
  • Freelance Marketing Specialist
Note that because of the many, many people that work (or are unemployed) in these areas, nowadays the Foreign Police sometimes refuses Visa Applications if they see your Trade License has exactly only that job type. Therefore it is clever to choose several trade licenses and add certificates, diplomas or any other proof that you are really a professional in that field - just to have them with you when you go to the Embassy or Foreign Police.

Careful with one customer only - the 'Schwarz - system'

If you have only one customer, and you are working there full-time (the so-called 'Schwarz - system') the social office may concluded that in fact you are employee at that customer and the company is evading social- and health charges. This may result in your client having to pay a fine and all the social- and health chargers for you as employee from the day you started working there.

In order to avoid this to happen, it is good to have several freelance projects spread over several customers (they do not have to be the same in size). This also is safer for you, in case one customer stops cooperation, you are not without income.

Salary vs Invoice

As a rule of thumb, about 2/3 of the gross salary of an employee is what he receives as net income. The total cost for the company is the gross salary + 34%, so having employees is expensive business, since the total costs are nearly twice the net salary.

Therefore, if you are going to work as freelance business, it is reasonable to send an invoice of at least the 'gross salary', because otherwise the client would have to pay for you as an employee the 'gross salary' + 34%

In case you have questions about working on a Trade License

Send us an email! We are expat accountants and can really help you start your freelance business, explain the risks and challenges, make sure you compy to the rules and make your business work for you!