Czech Republic: Digital Nomad Program Introduced

• Two streams. There are two visa pathways available to foreign workers under the digital nomad program: 
  • Foreign employees. Employees who will be teleworking for a foreign company (with at least 50 employees worldwide) while staying in the Czech Republic can now apply for a Long-Term Visa/Permit for “Other” Purposes.
  • Freelancers. Self-employed freelancers who already hold a Czech Trade License can apply for a Long-Term Visa/Permit for “Business – Self-Employment” Purposes. These applicants can work for themselves as freelancers performing contract work for Czech entities. For example, an Information Technology consultant for Czech businesses would fall under this category.
• Eligibility for both streams.
  • Information Technology or STEM experience. Applicants must have either three years of experience in the field of information technology or hold a university level degree, or higher, in science, technology, engineering, or mathematics (STEM). 
  • Minimum salary level. Applicants must show that they earn a salary of at least 1.5 times the average gross annual salary.
  • Specific nationalities. The program is only available to nationals of Australia, Canada, Japan, New Zealand, South Korea, Taiwan, the United Kingdom, and the United States.
• Processing. Processing can take up to 45 days from the date of submission of an application and the adjudication will be provided by email from the Ministry of Industry and Trade.
• Cost. The visa costs CZK 2,500 (approximately USD 115).
• Length of validity. Both types of Long-Term Visas are valid for one year, after which visa-holders must apply for a long-term residence permit which is valid for two years (for a total of three years stay).
• Local work.  Local work under a typical employment agreement is not permitted for individuals working on the two visa streams in the digital nomad program.
• Dependents. Immediate family members of applicants (spouses, registered partners or dependent children) can apply for a Long-Term Visa/Permit for ‘Family’ Purposes and their applications must be submitted concurrently with the principal applicant. Dependents are not permitted to work on these visas and those who seek employment in the Czech Republic must apply for a separate work authorization permit sponsored by a Czech employer.

This new category provides an immigration pathway for remote workers, which was previously not available.  

• Continuing trend. Although digital nomad visas and permits are not being introduced as rapidly as when the trend first started, we still see such tailored digital nomad statuses being introduced over the past months, with more in the pipeline. 
• Remote work visa warning. In countries where remote work is unregulated, workers and employers may unknowingly put themselves at risk of noncompliance with many aspects of the law, exposing them to possible fines or other penalties, depending on the country. Importantly, noncompliance with regulations could result in employers losing their rights to hire foreign labor. Additionally, this type of work arrangement may have employment or tax law impacts. It will become increasingly important as such policies are developed (and in many countries where remote work is unregulated) for employers to analyze strategies and assess risks associated with implementing and/or continuing remote work policies with a trusted immigration partner. 

• Possibility for expansion. At present, the government does not intend to expand the program beyond the current eligible countries.
• Digital nomad pathways. Remote work and non-traditional non-sponsored statuses remain of high interest to corporate and public stakeholders globally as countries recover economically from COVID-19 impacts and as talent shortages affect employers worldwide. Fragomen will report on related developments.