GT News

Taxes, accounting, law and more. All the key news for your business.

Roman Burnus | August 10, 2023

New economic migration programme for digital nomads

Share article:

In order to achieve economic benefits for the Czech Republic (CR), the government has approved the so-called Digital Nomad Programme, which responds to changing trends in the field of international mobility of employees and freelancers, caused mainly by the COVID-19 pandemic. The state is thus trying to enable digital nomads to stay in order to ensure benefits for the national economy.

A digital nomad is defined as a person who can work remotely using telecommunication means independently of the place of work. Typically, by the nature of the activity, these are IT workers, where the provision of cross-border services is common. IT workers often work on several projects from different locations around the world at the same time. Given the one-off nature of the tasks entrusted and the possibility of conflicts of employment relations, the future of IT lies, among other things, in hiring digital nomads.

Digital nomads will bring their foreign know-how to the Czech Republic, gain better promotion for the Czech Republic abroad, help companies established in the Czech Republic and support tourism. Their fiscal contribution in the form of taxes paid to the state budget is not negligible either.

The programme is open to employees of foreign companies or freelancers who secure a Czech trade licence. Relevant education and experience, sufficient income and citizenship of Australia, Japan, Canada, the Republic of Korea, New Zealand, the United Kingdom of Great Britain and Northern Ireland, the United States of America or Taiwan are required.

Foreign nationals from selected third countries can apply for a residence permit for business purposes or for “other” purposes in the case of an employee of a foreign company with the possibility of working remotely, including their family members, if the criteria are met. They can apply at Czech embassies abroad. The inclusion of digital nomads in the programme is decided by the Ministry of Industry and Trade. The programme guarantees that applications will be processed within a shortened timeframe of 45 days, compared to the standard timeframe of 3 to 4 months.

Author: Roman Burnus, Anna Beránková