Tax Liability and Trade license

Are you using web services (such as Airbnb, Booking, Trivago, Roomorama, VRBO) to provide a flat or a house in the City of Prague for use by tourists ("shared" accommodation)? If so, then legal obligations apply to you too!


Tax Liability

If you provide your property for a fee to third parties, it is your responsibility to pay taxes on income of natural or legal persons
and, and where applicable, social security and health insurance contributions.

For more detailed information on personal income tax, please visit:

For more detailed information on corporate tax, please visit:

For more detailed information on tax assessment of the obligations of accommodation service providers:


Trade License

Activity also consisting of accommodation for remuneration in residential and family houses, if it‘s operated in a business way (i.e. independently, in its own name, under its own responsibility, for the purpose of making a profit and under the conditions set by the Trade Licencing Act) can be performed only on the basis of a trade license for a free trade with the subject of business Production, trade and services not listed in Annexes 1 to 3 of the Trade Act, field 55. Accommodation services.

If the accommodation carried out based on a trade licence, it has the space in which the accommodation is provided, it has the character of a trade establishment. Under § 17 (3) of the Trade Licencing Act, the entrepreneur is obliged to notify the Municipal Trades Licencing Office of the commencement and termination of a trade in an establishment. The trade establishment must also be designated in the specified manner by the name, surname, business name or entrepreneur’s name and their identification number of the person, name and surname of the person responsible for the establishment activity, operational time, category and accommodation establishment class (§ 17 par. 7 and 8 of the Trade Licencing Office).

Upon termination of activities in an establishment, the entrepreneur is further obliged to notify the Trade Licencing Office regarding what address their potential obligations can be settled (§ 31 (16) of the Trade Licencing Act).

For more information, please visit: