5 legal traps expats fall into in Czechia: How to avoid them

Setting up life or business in Czechia is exciting, but it also includes a lot of bureaucracy, confusing enough to make a Kafka plot sound logical. Between visa rules, tax returns, and whether your side hustle counts as “illegal activity,” it’s possible to run up against major issues you might not have foreseen. 

Even one small error could result in fines, missed opportunities, or a one-way ticket out of the country, but most common mistakes are avoidable with the right guidance. Here are the five major mistakes expats make—and the right steps to take that will keep you protected.

Many expats who move to the Czech Republic easily fall in love with it—sometimes, they fall so hard they forget to ensure they can legally remain in the country. Czech migration laws are pretty strict, and if your visa or residence permit expires—even by a single day—you could face hefty fines, forced deportation, or future visa denials. 

“Knowing exactly which documents you need to apply for, or extend, a visa is a real headache for many expats—especially when the Interior Ministry's English skills are limited,” explains Eduard Malyarchuk, CEO of Nawi Europe, a company specializing in legal, tax, and banking solutions for expats. “A verified advisor is able to tell you if you need to notarize, apostille, translate, and so on.”

These specialists can assist you by tracking your permit timelines, preparing renewal dossiers correctly, and working directly with immigration authorities to avoid delays and keep you in Czechia as long as you need.

Side hustles are a great way to earn extra cash, but you can’t just start one out of the blue—you’ll need an appropriate trade license (known as a živnostenský list), otherwise you can’t legally invoice clients. 

If you don’t want to kiss your side-gig income goodbye, consulting with a qualified financial expert will go a long way. From preparing and submitting your application to handling document apostilles and translations, they’ll also help you select the correct licensing category for your business activity to ensure full compliance with Czech trade laws.

Yes, you do need to pay taxes in the Czech Republic, even if most of your income comes from abroad. A trusted financial advisor can help you get up to speed on the tax laws particular to your situation, but in most cases, you’ll be required to file an annual tax return.

Ignoring this obligation will absolutely interfere with your income, residency status, and more, so having an expert review your income sources, calculate your tax obligations, and submit the proper paperwork to the local Financial Office will go a long way. They also handle VAT registration when required and can help optimize your tax structure per Czech law.

How often do you read an entire contract before signing it? If the answer is “mostly” or “not at all,” you could end up kicked to the curb, especially if you’re buying, leasing, or renting property in Czechia. 

Many foreign buyers and tenants overlook critical details like automatic renewal terms, unpaid utilities, or property ownership disputes. “Before signing anything, it's essential to verify ownership, inspect land registry records, and have the contract reviewed by a local legal expert, adds Malyarchuk.

Unless you’re a real estate lawyer, do yourself a favor—hire a legal expert to thoroughly review all documents before you sign, check the details that matter most, and conduct due diligence to flag any hidden risks. They’ll also ensure that your contract complies with Czech property law, so that your long-term interests are fully protected.

Some expats delay opening a bank account in Czechia, not realizing how critical it is for opening a business or dealing with day-to-day life expenses. Without one, you can’t deposit capital for a company setup, you’ll likely incur extra currency conversion fees, and you may have difficulty paying rent, taxes, or employees. 

If you need help choosing the right bank or have questions about the system, a financial advisor can make the process smoother. They’ll help prepare the necessary documents and communicate directly with the bank to ensure the account-opening process is handled correctly. They can also assist with pre-registration accounts—required for capital deposits—and can resolve issues like frozen or blocked accounts when needed.

Don’t let legal slip-ups ruin your new life in the Czech Republic. With expert help, you can avoid costly mistakes and stay focused on what brought you here in the first place—whether that’s building a business, starting a family, or finally deciphering those Kafka plots.