PARDUBICE, CZECH REPUBLIC
Things to know
Historic, Industrial City in Eastern Bohemia
At the confluence of the Elbe and Chrudimka rivers, Pardubice owes its reputation primarily to the production of gingerbread and its famous Velká Pardubická steeplechase.
In addition to the beautiful historic centre with the Renaissance castle, there are several other architecturally remarkable monuments. It is also worth mentioning the charming surrounding countryside, most inviting for hiking and cycling trips.
Lying 124 km East of Prague (about an hour by train) and originating in the 13th century as a trade mart, Pardubice received civil rights in 1340 and by 1490 had become a possession of the Czech Pernštejn family, who renovated it in Renaissance style during the 16th century.
The town was completely destroyed by Swedish troops in 1645, however, its square is now an architectural showplace, with a row of outstanding patrician houses, a 16th-century Gothic castle, and the Green Gate (Zelená brána, 1507).
The Italian arcade-style Litomyšl Castle was designated a UNESCO World Heritage site in 1999.
Key Industries include engineering, sugar refining, brewing, and, since World War II, oil refining.
The town is an important road and rail junction and a cultural and administrative centre with an estimated population of approximately 88,471.
The City of Gingerbread and Horses.
Famous for gingerbread and steeplechasing, the fairy-tale town of Pardubice is waiting to be discovered.
Lying on the banks of the Elbe river, the city in the Czech Republic oozes charm and is a hotspot that culture vultures will fall head over heels for.
With its stunning architecture, fascinating history and mouth-watering gastronomy, you won’t struggle for things to see and do.
One of the most beautiful squares in the country, The Pernstyn Square is the beating heart of the city and is located in the centre of the old town.
Fenced in on all sides by late gothic buildings, the cobbled stoned square is buzzing with life at all hours of the day.
The facades of the buildings of the area are designed in renaissance, baroque and empire styles but take a closer look at the insides where you’ll see they still resemble the original designs from 600 years ago.
Full of outdoor restaurants and cafes, it is best to enter the square through the 15th-century Green Gate, a massive tower and attraction in its own right.
Housed in a former hunting chateau, the Gingerbread Cottage is the place to visit to get your fix of golden goodness.
The city’s history with the sweet treat dates all the way back to the 16th century and they have even had their recipes patented with the EU. A great day out for all the family, the Gingerbread Cottage is well worth a visit.
How does Pardubice Compare?
The average cost of living in Pardubice is €708, which is in the top 31% of the least expensive cities in the world, ranked 6393rd out of 9294 in a recent global list and 56th out of 58 in the Czech Republic.
The median after-tax salary is €1177, which is enough to cover living expenses for 1.7 months.
Ranked 5476th (TOP 59%) in the list of best places to live in the world and 19th best city to live in the Czech Republic. With an estimated population of 88.5K, Pardubice is the 10th largest city in the Czech Republic.
The average rent in Pardubice for a one-bedroom apartment in the city centre is approximately €565 per month, and utilities cost around €200 a month.
If you're okay with an apartment outside of the city centre that will cost you around €435.
Other costs will be around €600 including markets, transportation, restaurants, and sports and leisure for one person.
When compared to Prague:
Consumer Prices in Prague are 21.58% higher than in Pardubice (without rent)
Consumer Prices Including Rent in Prague are 36.15% higher than in Pardubice
Rent Prices in Prague are 82.55% higher than in Pardubice
Restaurant Prices in Prague are 36.05% higher than in Pardubice
Groceries Prices in Prague are 25.76% higher than in Pardubice
Cost of Living
Czech tax residents are generally subject to Czech income tax on their worldwide income. Tax non-residents are generally taxed only on income considered Czech-source income.
From 2022, the PIT rate was 15% calculated from a so-called 'super-gross income' (which means that social and health insurance paid from salary by the employer was added to the employment income tax base of the employee).
From 2021 the 'super-gross income' concept has been cancelled and the tax base is not calculated from gross income only. Also, the solidarity surcharge of 7% for high-income earners has been abolished as of 2021 and replaced by the progressive rate as mentioned below (previously, income tax was called 'solidarity contribution' amounting to 7% of the gross employment income and self-employment income less tax-deductible expenses that were above the social security payment cap was applied).
As of 2021, the Czech Republic returns to progressive taxation, with the introduction of a marginal rate of 23%, as follows:
Gross income up to the social security payment cap (the threshold for 2021: CZK 1,701,168 and for 2022: CZK 1,867,728) is subject to a 15% rate.
Gross income exceeding this threshold is subject to a rate of 23%.
The above rates apply to all types of income, except for income that has already been taxed by the final Czech withholding tax at source, and except for certain types of foreign income included in the separate tax base - see below.
Eligibility to Work in Pardubice
Employment in the Czech Republic
At a Glance:
Located at the heart of Europe, the Czech Republic is conveniently positioned for business and trade — ideal for ex-pats.
The Czech economy is heavily dependent on exports, as well as having a growing service sector which makes up approximately 60% of the national GDP.
Czech is particularly difficult to learn; however, English is widely spoken, so communication should not be an issue.
Anyone with a permanent home in the Czech Republic where they spend more than 183 days per calendar year is considered a resident for tax purposes.
Since the fall of the Iron Curtain, the Czech Republic has attracted ex-pats.
This may be partly due to the charms of its capital city, Prague, but can also be attributed to the privatization of the Czech economy and subsequent opening-up to foreign investment during the 1990s. After the country joined the EU in 2004, finding a job in the Czech Republic has become a realistic option for many more ex-pats.
In 2016, the government of the Czech Republic registered a new short-form name, Czechia, intended to make life easier for English speakers and clear up ongoing confusion and unofficial name shortening. The full and short name can be used interchangeably.
The Czech Market — At the Center of Everything
The Czech Republic is a particularly attractive location for both foreign employees and many international businesses due to its central location within Europe. With good transportation and infrastructure links, it’s an excellent base for doing business with Germany and Russia, for example. This infrastructure, combined with its reputation among investors as being a stable westernized market, means the country has succeeded in attracting a large amount of direct foreign investment.
Other advantages of working in the Czech Republic include a skilled workforce and an open economy. While the Czech language poses one of the biggest obstacles to foreign workers, the good news is that English is widely spoken throughout the business world.
The Driving Force behind the Czech Economy
The Czech Republic's economy has its roots in manufacturing. During the 19th century, Bohemia and Moravia were the industrial powerhouses of the Austro-Hungarian Empire. In the inter-war years, Czechoslovakia (as it was then called) established itself as one of the leading manufacturing economies in the world. Today, roughly 38% of the total labour force remains in the industrial sector, with 60% of the labour force in the secondary sector, which comprises almost 60% of the country’s GDP.
The Czech Republic has several key industries, including motor vehicles, engineering, steel production, pharmaceuticals, and more. The automotive industry accounts for around 28% of the Czech manufacturing output and is the country’s largest single industry. Besides the automobile industry, beer is a cornerstone of the economy; the Czech Republic is Europe’s sixth largest beer producer, but when it comes to beer consumption, the Czechs outdrink not only the rest of Europe but the world!
The Up-and-Coming, Stagnating, and Declining Sectors
As in many countries with strong manufacturing industries, the Czech Republic’s economy is heavily dependent on exports. Consequently, the country was affected by the 2008 global financial crisis due to the decline in foreign demand for its goods. However, in recent years it has successfully recovered, seeing steady GDP growth and a low unemployment rate (4% in June 2017).
The Czech financial sector, on the other hand, managed to remain relatively healthy during the 2008 economic crisis. This was partly because the country had experienced its own banking troubles in the late 1990s, implementing relatively conservative measures to maintain stability as a result.
While the agricultural sector is in decline (employing 3% of the labour force), the service sector is on the rise in the Czech Republic. Although the size of the service sector in relation to its contribution to the national GDP has stagnated over the past couple of years at roughly 60%, it is predicted to grow as the country moves towards a more high-tech, service-based economy.
The tourism industry is also on the rise. While Prague continues to attract record numbers of tourists every year (with just over 7 million visitors in 2016 alone), the country’s many famous spa towns (such as Karlovy Vary or Mariánske Lázně), as well as its castles, are becoming increasingly popular tourist destinations.
The country’s thriving tourism sector provides many opportunities to work in the Czech Republic. As many leisure activities are aimed at tourists, jobs in this field are often suitable for foreign workers that speak languages other than Czech. As English is the international language of business and Germany is the Czech Republic’s main trading partner, native speakers of English and German are in high demand.
If you have the right qualifications, you may be able to find a teaching job in a private language school or for a big international company. A university degree and/or a teaching certificate (such as TEFL) plus some teaching experience are generally required. You can contact the cultural representation of your country in the Czech Republic (e.g. the British Council or the Goethe Institut) for job openings and more information.
Working Conditions in the Czech Republic
Employment in the Czech Republic is regulated by extensive labour laws. The Labor Code stipulates, among other things, that any employee must be regulated by a written employment contract detailing the nature of the work and other important details such as working hours, the length of the probation period, annual leave, minimum wage, etc.
By law, the probation period cannot exceed three months (or six months for managerial positions). Every employee is entitled to four weeks of paid annual leave, with one supplementary week being standard in well-established companies. Average working hours for full-time employees are around 41.7 hours per week, just over the OECD average.
Czech Republic: Work Permits & Taxation
EU/EEA citizens enjoy the freedom to settle and work in the Czech Republic. All other nationalities, however, must obtain a work permit before they can legally take up employment. As a general rule, foreigners can be employed in the Czech Republic under two conditions: the employer has obtained a permit from the Labor Office to employ foreigners and the employee has been granted a work permit for the job in question.
The First Step to Hiring Expats
Foreigners can only be employed in positions for which no suitable candidate could be found within the Czech Republic or other EU member states. The vacant position must be reported to the Labor Office and the specification cannot be changed at a later stage to fit the profile of a potential employee. Working conditions of foreign employees must correspond to those of Czech employees in similar positions, but their salary must be at least 1.5 times that of the average gross annual salary in the Czech Republic.
Once all these basic requirements have been established, the employer can apply for a permit to hire employees from abroad. Applications are submitted to the Labor Office responsible for the district where the foreigner will be employed. It is important that the employee has obtained their work permit before entering the country; the employer may be liable to pay the costs of the employee’s expulsion should they not have it.
Got the Job? Now Get the Work Permit!
A prospective foreign employee has to apply for a work permit at the Labor Office before moving to the Czech Republic. A work permit can only be issued for the exact job and employer specified in the application. It is non-transferable and only valid for two years, after which a new application must be submitted.
If any of the conditions specified in the work permit change prior to its expiration, the employee must apply for a new one.
An application consists of:
proof of identity (e.g. photocopy of the relevant pages of your passport, including passport number)
proof of address in the foreigner’s country of permanent residence
all information necessary to identify the future employer (name, registered office, identification number)
information regarding place, duration, and type of work
declaration from the employer that he/she will employ the foreigner
notarized copies of academic and professional qualifications relevant to the type of work
administration fee (500 CZK)
All documents must be submitted as originals or officially certified copies and be accompanied by a notarized Czech translation. For more information on obtaining a work permit for the Czech Republic, please visit the website of the Ministry of Labor and Social Affairs.
Please note that to work in the Czech Republic, you must have a valid employment visa. More details regarding visas and residence permits can be found in our article on moving to the Czech Republic.
Taxation — Which Rates Apply to You?
Taxes in the Czech Republic depends on your resident status. Anyone with a permanent home in the Czech Republic where they spend more than 183 days per calendar year is considered a resident for tax purposes. This means that you will be taxed on your worldwide income in the Czech Republic. If your residence remains outside the country’s borders, you will only be taxed on income from sources in the Czech Republic.
Resident employees are taxed at a flat rate of 15% on their personal income. Provisions by your employer — such as a car which is available for private use — are taxable. For more details, please consult the pages of the Czech Ministry of Finance. Furthermore, you can check to see whether your country of origin has a treaty for the avoidance of double taxation with the Czech Republic.
Choosing the Right Social Security Provider
The Czech Republic has a comprehensive social and health insurance system. General health insurance is provided by nine different, independent funds. Every person is free to choose their fund and health care provider, to which they pay mandatory contributions.
Social security consists of pension, sickness, and unemployment benefits. Everybody working in the Czech Republic pays contributions based on their income. As of March 2017, the combined amount of social security contributions is 45% of an employee’s gross salary, 34% of which are payable by the employer leaving 11% to be paid by the employee.
However, there may be some exemptions for non-Czech nationals on short-term work placements. If you are an EU citizen, you can be exempt from Czech social security contributions provided you continue to pay in your normal country of residence. The same goes for citizens of countries that have a social security agreement with the Czech Republic.
The Ministry of Labor and Social Affairs provides more information on this topic.