Zero Income for Self-Employed Individuals in the Czech Republic: Which Contributions Will Remain Mandatory in 2026

A lack of income does not exempt an entrepreneur in the Czech Republic from all mandatory payments. In 2026, a self-employed person (OSVČ) with a primary business activity may have to pay at least 8,311 Kč per month, even if they have not made a profit. Learn more about social security and health insurance contributions, benefits for certain categories of entrepreneurs, and ways to legally reduce the financial burden

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Zero income may result from a lack of customers, a seasonal lull, or a temporary suspension of operations. However, in the Czech Republic, it is not only the actual earnings that matter, but also whether the business remains officially active.

If an OSVČ is not working but fails to report the change in status, their debt to social security agencies may continue to grow. Therefore, entrepreneurs must check their obligations in advance and choose the correct course of action.

In the previous article, we provided a ranking of the richest countries in the world in 2026 by GDP.

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No Income—Do You Need to Pay OSVČ Contributions in the Czech Republic?

If the OSVČ’s business remains active, the absence of orders or income does not in itself exempt the entrepreneur from insurance payments. For an entrepreneur engaged in a primary business activity, minimum advance payments continue to be assessed regardless of actual profit.

As of August 2026, the standard minimum contribution for an OSVČ engaged in a primary business activity is:

- 5,005 Kč per month – social insurance

- 3,306 Kč per month – health insurance

- 8,311 Kč per month – total amount of mandatory advance payments

The minimum health insurance contribution of 3,306 Kč has been in effect since January 1, 2026. It is calculated based on a minimum monthly assessment base of 24,483.50 Kč.

The social insurance contribution at the beginning of 2026 was 5,720 Kč; however, starting in July, it was reduced to 5,005 Kč for some self-employed individuals who were paying contributions based on the minimum assessment base.

Therefore, zero income does not mean zero expenses. If a self-employed individual pays 8,311 Kč per month for 12 months, the total amount of social and health insurance contributions will be 99,732 Kč per year.

Income tax in the absence of taxable profit will usually be zero. However, this does not always exempt self-employed individuals (OSVČ) from filing a tax return: for example, if an entrepreneur did not receive any income but incurred expenses and reported a tax loss, a tax return must be filed.

In our previous article, we discussed the possibilities of starting a business in the Czech Republic in 2026: taxes, expenses, and a step-by-step guide.

Main and Secondary Activities of an OSVČ: What’s the Difference

The obligation to pay social security contributions depends on whether the business is the main activity (hlavní činnost) or a secondary activity (vedlejší činnost). This distinction is particularly important when income is zero or very low.

If self-employment is the primary activity, participation in the pension insurance system is mandatory. The entrepreneur must pay the prescribed advance payments even when temporarily not receiving any income.

An activity may be considered secondary if the entrepreneur simultaneously:

- Is employed and participates in the insurance system

- Is enrolled in secondary school, vocational school, or college

- Receives an old-age pension or a disability pension

- Is caring for a child under the age of four

- Is receiving maternity benefits

- Cares for a person who is dependent on outside assistance

In the case of supplementary activity, social security contributions do not always have to be paid starting from the first month. The obligation depends on the entrepreneur’s annual taxable income or their voluntary participation in the pension insurance system. Therefore, if their income is zero, a self-employed person (OSVČ) engaged in supplementary activity may not be required to pay mandatory social security contributions.

The status of a side job is not automatically granted simply because of low income or a lack of orders. There must be a legal basis for this status, and in some cases, it must be confirmed by documents: a certificate from the place of employment or study, a pension decision, or a child care application.

If the basis for the secondary activity ceases to exist—for example, if a person is laid off from work or completes their studies—the business may become their primary activity. You must notify the Czech Social Security Administration of the change in status, as this will determine the future amount of advance payments.

Social Insurance for OSVČ in 2026

The amount of the social insurance contribution depends on the type of activity, the start date of self-employment, and the established assessment base. For OSVČ with a primary activity, the minimum advance payment in 2026 varied throughout the year.

The main amounts are as follows:

- 5,720 Kč per month – the minimum advance payment for the primary activity through June 2026

- 5,005 Kč per month – the minimum advance payment starting in July 2026

- 3,575 Kč per month – the preferential minimum for self-employed individuals who have not engaged in self-employment during the previous 20 years

- 1,574 Kč per month – the minimum advance payment for secondary activities, if the obligation to pay has already arisen

The reduction of the standard minimum advance payment from 5,720 to 5,005 Kč applies to self-employed individuals (OSVČ) whose contributions were calculated specifically based on the minimum base. If an entrepreneur is already paying a higher amount based on actual income, their advance payment will not automatically be reduced to the minimum level.

Who is temporarily exempt from paying advance payments?

A separate rule applies to entrepreneurs who started or resumed their business after December 31, 2024, and were not self-employed (OSVČ) during the preceding five calendar years. They may be exempt from monthly advance payments in the year they begin their business and in the following calendar year.

However, this exemption does not mean that social security contributions are completely waived. After the annual report is submitted, the ČSSZ calculates the final amount based on the actual results of the business. If a payment obligation arises, the entrepreneur must pay the entire amount at once.

For example, a person registered as an OSVČ in March 2026 and became eligible for an exemption from advance payments. There may be no monthly payments during the year, but after the report is submitted in 2027, the ČSSZ will determine the contribution based on the profit earned.

When is the contribution for additional business activity zero?

An OSVČ engaged in additional business activity does not pay social insurance if their annual taxable income does not exceed the established threshold. If the business activity did not last the entire year, this threshold is proportionally reduced for each month the entrepreneur was not working.

If the profit exceeds the threshold, after filing the annual tax return, the entrepreneur must pay the outstanding contribution and begin making monthly advance payments. In 2026, the minimum amount for these advance payments for supplementary activities is 1,574 Kč.

You cannot independently terminate or arbitrarily reduce social security advance payments that have already been established. If income has dropped significantly, a self-employed individual (OSVČ) may apply to the ČSSZ to reduce payments or officially suspend their business activities.

We previously reported that the Czech Republic is tightening financial requirements for visas and residence permits.

Health Insurance: Who Pays 3,306 Kč, and Who Is Exempt from Advance Payments

The minimum advance payment for state health insurance for self-employed individuals in 2026 is 3,306 Kč per month. It is paid by self-employed individuals subject to the mandatory minimum assessment base, specifically the majority of self-employed individuals engaged in their primary business activity.

The amount is calculated based on a minimum monthly assessment base of 24,483.50 Kč. If, based on the previous year’s results, an entrepreneur’s insurance contribution was higher, they pay not the minimum of 3,306 Kč, but the amount specified in the annual report.

As a general rule, self-employed individuals pay health insurance through monthly advance payments and, at the end of the year, submit a report on income and expenses to the insurance company. The final contribution amounts to 13.5% of the assessment base, which for a self-employed individual is equal to 50% of profit after deducting expenses.

Who is exempt from the minimum base?

Certain categories of self-employed individuals (OSVČ) pay health insurance based on their actual profit and are not required to make the standard minimum monthly payment. These include entrepreneurs whose insurance is fully or partially provided by an employer or the state.

This rule may apply, in particular, to:

- Employees for whom self-employment is a secondary activity and whose employer pays a sufficient insurance contribution

- Students

- Retirees

- Recipients of maternity or paternity benefits

- Individuals whose health insurance is paid by the state

- People who personally care for at least one child under the age of seven

In such cases, the contribution is calculated based on actual financial results. If the profit is zero, the final insurance contribution from business activities may also be zero. However, the right not to apply the minimum base must be confirmed with the insurance company.

Can you stop or reduce payments on your own?

An OSVČ cannot simply reduce their advance payment due to a loss of clients or a temporary drop in income. Until the insurance company changes the set amount, the entrepreneur must continue to pay it in full.

In the event of a significant reduction in profit, you can apply to the insurance company to reduce your advance payments.

Another option is to confirm eligibility for preferential status or to officially suspend OSVČ status. Simply stopping payments without notifying the insurance company will result in arrears and penalties.

Earlier, we talked about the new rules for the employment of foreign nationals in the Czech Republic.

Do you need to file a tax return if you have zero income?

The absence of income does not always exempt an OSVČ from filing a tax return. The procedure depends on whether the self-employed individual had expenses and whether a tax loss arose.

There are two main scenarios:

1. There was no income, but there were expenses. In this case, a tax loss arises, so the self-employed individual is required to file a tax return.

2. There was neither income nor expenses. You do not have to file a tax return, but you must notify the tax authority of this circumstance by the same deadline that applies to filing the return. To do this, submit a written notice or a čestné prohlášení—a declaration of no income and no expenses.

A zero tax liability does not mean that the self-employed individual can simply ignore the tax authority. If a self-employed individual (OSVČ) fails to file a return even though expenses resulted in a loss, or fails to report a complete lack of business activity, the tax authority may request an explanation and impose penalties for missing the deadline.

For self-employed individuals with a legally required datová schránka, tax returns and other formal tax documents must be submitted electronically. A standard paper form is not sufficient in this case.

Separate from the tax return, a self-employed individual (OSVČ) is generally required to submit annual reports on income and expenses to the Czech Social Security Administration and their health insurance company. This applies even in situations where business activity lasted only part of the year or the self-employed individual did not make a profit.

In our previous article, we provided a detailed guide on possible ways to move to the Czech Republic legally.

What happens if a self-employed individual (OSVČ) simply stops paying contributions?

A lack of income does not give you the right to stop making insurance payments on your own. If your OSVČ status remains active and the required advance payments are not made on time or are not paid in full, a debt accrues.

A penalty is added to the principal debt for each day the payment is overdue. For health insurance, starting July 1, 2026, the penalty is 0.0322% of the unpaid amount for each calendar day. For example, for a debt of 10,000 Kč, the penalty will increase by approximately 3.22 Kč per day, or nearly 97 Kč over 30 days.

The insurance company may first send a reminder via email, SMS, letter, or through the datová schránka. If the debt remains unpaid, the case may proceed to enforcement proceedings. In addition to unpaid premiums and late fees, the business owner risks fines for failing to fulfill their obligations to the insurance company.

Social security contributions are also not waived due to a lack of orders. You can check your outstanding balance and any accrued penalties via the ČSSZ online portal. If it is not possible to pay the full amount at once, the business owner may submit a request to pay the debt in installments, but decisions are made on a case-by-case basis.

Legitimate options for reducing the burden include:

1. Submitting an application to reduce advance payments if actual income has significantly decreased

2. Confirming eligibility for supplementary employment or preferential insurance status

3. Officially suspending or terminating business operations

4. Applying for an installment plan to pay off existing debt

To reduce your health insurance advance payments, you must submit the required application. The insurance company will approve it only if the conditions stipulated by law are met. For social insurance, there is also a separate form to reduce the assessment base, and for supplementary activities—to waive the obligation to pay advance payments.

Simply stopping payments is the most expensive option. Your OSVČ status will not change, and your debt will continue to grow. Therefore, all changes must first be officially processed through the relevant authorities.

How to Properly Suspend OSVČ Status in the Czech Republic?

If a self-employed person does not plan to work temporarily, officially suspending their business activities will help stop further accrual of advance payments. The mere fact of having no income is not sufficient for this.

You can suspend your business activities through the Business Registry, specifically using the Změnový list. The application must specify the start and end dates of the suspension. The business is considered suspended from the date the notification is submitted or from a later date specified by the entrepreneur. It is not possible to retroactively process a suspension through the business administration office.

Using the single registration form, information can be simultaneously submitted to other agencies. At the same time, the entrepreneur should verify that each agency has actually received the notification.

Key obligations after ceasing self-employment:

- Notify the health insurance company no later than within 8 days

- Notify the relevant social security office

- Determine who will pay for health insurance going forward

- Keep proof of submission and the suspension date

For health insurance purposes, a suspension of business activities is effectively treated as a termination of self-employment for a specific period. The notification can be submitted directly to the insurance company or through the Business Registration Office.

After suspending self-employment (OSVČ), a person must have another basis for health insurance. This may include formal employment, education, a pension, registration with the employment office, or belonging to a category of persons for whom the state pays contributions.

If no such basis exists for the entire calendar month, the individual may transition to the OBZP category—persons without taxable income—and pay for health insurance on their own. The insurance company must also be notified of the change in status within eight days.

Suspension does not cancel existing debts or exempt you from filing annual reports for the period when you were actively engaged in business. Before applying for a suspension, you should check your payment status with the ČSSZ and your health insurance company.

To learn more about the specifics of obtaining a Digital Nomad visa in the Czech Republic, please follow the link.

What should a self-employed person (OSVČ) check if their income has dropped to zero?

In the absence of income, it is important not to stop payments on your own, but to first verify your status and explore available legal options. This will help you avoid debt, penalties, and the need to pay a large sum all at once after the annual recalculation.

Self-employed individuals (OSVČ) should systematically check the following:

1. Whether the activity is primary or secondary. For secondary activities, social security contributions may not be assessed if the profit does not exceed the established threshold.

2. What advance payments have been set by the ČSSZ and the health insurance company. You should base your calculations not only on the general minimum but also on the amount specified in the most recent annual statement.

3. Are you eligible for preferential status? This may apply to employees, students, retirees, parents on parental leave, and other individuals for whom the state pays insurance contributions in part or in full.

4. Can you reduce or waive advance payments? To do so, you must submit an official application and provide proof of reduced income or another legal basis.

5. Is it advisable to suspend OSVČ status? If an entrepreneur does not plan to work for an extended period, an official suspension may be more advantageous than paying the minimum monthly contributions.

6. What reports must be filed? Even with zero income, notifications to the tax office and annual reports to the ČSSZ and health insurance company may still be required.

7. Who will pay for health insurance after suspending business activities?In the absence of an employer, registration with the employment office, or another basis for insurance coverage, you will have to pay the premium yourself.

For self-employed individuals (OSVČ) whose primary business activity generates zero income, insurance costs can exceed 8,000 Kč per month. Therefore, you should not wait for the debt to accumulate: you must immediately file for a change in status, a reduction in advance payments, or a suspension of business activities through the relevant Czech authorities.

Investments, opening a company in another country, remote launch of a representative office or team relocation require a clear legal strategy. A personal business lawyer accompanies the entire process: from choosing a jurisdiction and tax model to visa processing and asset protection.

Engage a personal business lawyer and ensure safe relocation and development of your company abroad!

We remind you! New economic indicators show which countries have been able to increase their GDP and which have lost ground due to inflation and slowing growth. Ranking of the richest countries in the world in 2026 — follow the link.