- Paul Zimmerer
Over InterNations, I quickly got in touch with some business partners in Prague and other cities in the Eastern European market.
Employment in Brno
Local Economy
As the second largest city in the Czech Republic, Brno’s local economy is one of the strongest in the country. Although traditionally an industrial city, Brno has over the last two decades made the transition to an information economy, and the service sector is now the largest in terms of economic output. Brno is an important center for research and development in the Czech Republic, particularly in the fields of technology and clinical research, as is demonstrated by the two major research centers located in the city: the Central European Institute of Technology and the International Clinical Research Center. Engineering and software development are also major industries. Tourism is also central to the economy, and after Prague, Brno is the most visited city in the Czech Republic. Expatriates working in Brno tend to be employed in research and development, or work as English teachers.
Work Permits for Brno
Whether or not you will need a permit to work in Brno depends on your nationality. As the Czech Republic is a member of the European Union, EU/EEA nationals and Swiss citizens will not need a work permit to legally take up employment in Brno. However, citizens of non EU/EEA countries will need a permit to work in Brno. Before you make your application, you must have already secured work in Brno, as your prospective employer must consult with the Employment Office about their intention to employ a foreigner. After this consultation, your prospective employer must then advertise your job in Brno for 30 days, and if the position cannot be filled by a Czech citizen during this period, you will be allowed to apply for a work permit through your local embassy or consulate. You must have already obtained a work permit before you can apply for a visa.
Income Taxation in Brno
Expatriates living and working in Brno will be required to pay income tax on their earnings. Your residency status in Brno will determine the income on which you pay tax at Czech rates. If you live and work in Brno for more than 183 days in a year, you will pay tax at the Czech rates on your worldwide income. If you live and work in Brno for less than 183 days in a year, you are not considered a resident for tax purposes and will only pay income tax at Czech rates on your Czech income.
The Czech Republic has a unique income tax system, which is somewhere between a flat rate and a progressive, sliding scale system. There is a flat rate for income tax that is set at 15%, but anyone earning over 1,277,328 CZK must pay an extra 7% solidarity charge on top of their income tax. Expatriates earning less than 24,840 CZK are not required to pay income tax. You will also be required to pay mandatory health insurance and social security contributions on top of your income tax.