Specifics of Czech Banking
Is my money working on my current account?
The balances held in KB accounts pay interest at the rate announced.
Taxation of the interest
The interest accrued is subject to income tax of 15%.
Tax expenses from investment products complies with the Agreement on the Restriction of Double Taxation between the CR and the country where the client has the tax domicile.
Are there any minimum initial deposits?
Savings, term and current accounts are opened by means of a deposit. Detailed information could be find in Oznámení o minimálním počátečním vkladu a minimálním zůstatku.
How can I get a state subsidy?
You can receive state subsidy on some financial products, e.g. building savings or pension insurance.
Foreign clients in the Czech Republic are eligible for the state support on a building savings if they have permanent residence in the CR and have been allocated a birth certificate number, and on pension insurance if they are EU citizens and if they are part of the social or public health system in the Czech Republic.
Is there any possibility to lower the tax base?
There are financial products which allow their owner to lower the tax base.
This involves pension insurance, life assurance (the reduction of the tax base can be up to CZK 12,000 per year), interest paid on a bridging mortgage loan or a mortgage loan (the reduction of the tax base can be up to CZK 300,000).
The Czechs do not use cheques
The Czech economy is known as “cash economy”, which mainly means that cheques are not used here. This might be a big surprise if you come from a country where it is common to use cheques.
I do not know what to do with a paying-in slip
The service of paying - in slip is provided by the Czech Post Office. You can use this payment method in a Post Office or you can simply pay the bill via bank (payment order) using the information from the slip. Description of a paying-in slip.