VAT news [May 2026]
The Court of Justice of the European Union issued several noteworthy decisions in the area of VAT. In one case concerning transfer pricing, it addressed the tax treatment of adjustments resulting from subsequen…
The legal regulation of the residence and employment of foreigners in the Czech Republic is not only made up of national legislation. In addition to key laws, in particular Act No. 326/1999 Coll., on the Residence of Foreign Nationals, and Act No. 435/2004 Coll., on Employment, the law of the European Union and international treaties by which the Czech Republic is bound also play a fundamental role. These supranational regulations take precedence over Czech law.
In practice, this means that when assessing specific cases of employment of foreigners, it is always necessary to take into account the entire hierarchy of legal norms. Omission of European regulation may lead to incorrect conclusions – especially in the case of specific types of residences that are regulated by EU directives.
For almost two years, citizens of selected countries have had free access to the labour market under Section 98 of the Employment Act. Specifically, these are Australia, Japan, Canada, the Republic of Korea, New Zealand, Great Britain, the United States of America, Singapore, Israel and Taiwan. However, as has been repeatedly emphasized, free access alone does not constitute a right to stay in the territory of the Czech Republic. It is still necessary to apply for a residence permit in the standard way.
The advantages of this regime are most evident in the Czech environment with employee cards, both dual and non-dual. Employers, if they want to employ a foreigner who is entitled to free access to the labour market, are not obliged to:
If the application is approved, the employee card holder can start work immediately after arrival in the Czech Republic on the basis of a visa to take over a residence permit (DV/R). Therefore, it is not necessary to wait for the issuance of a confirmation of compliance with the conditions of the employee card holder, which is normally issued by the Ministry of the Interior only during personal registration at the OAMP workplace.
However, the situation is different for residence titles, which are harmonized by European law – specifically the Blue Card and the Card for Intra-Company Transferred Employees (ICT).
Blue card
The Blue Card is designed for highly qualified workers and brings a number of benefits, such as:
However, this card can only be issued for a job that has been duly reported to the Labour Office and included in the central register. The rules for issuing it do not change even for foreigners with free access to the labour market.
A fundamental restriction also comes in the question of starting a job. A Blue Card holder can only start working after receiving confirmation of compliance with the conditions of a Blue Card holder. In practice, this may – depending on the workload of the OAMP workplace – mean a delay of several weeks after arrival in the Czech Republic.
ICT card
The same logic applies to the card for intra-company transferred employees. Although a foreigner may formally have free access to the labour market here, it cannot be fully exploited in practice.
Even in the case of an ICT card, it is not possible to start work immediately upon arrival. The employee must wait for the issuance of a confirmation of compliance with the conditions by the OAMP, which again prolongs the actual start of work.
From the point of view of employers, it is therefore important to distinguish for which types of residence permits free access to the labour market can actually be used and where its effect is limited by European legislation.
While this regime can significantly simplify and speed up the onboarding process for employee cards, key administrative steps remain in place for blue cards and ICT cards – including the obligation to wait for final confirmation from the Ministry of the Interior.
If you are dealing with a specific situation or need a more detailed assessment, we recommend that you rely on the individual circumstances of the case and possibly use professional consultations.
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