Who wouldn’t want to get a few thousand crowns back from the state — completely legally? Every year, the government offers the chance to reduce your tax base thanks to retirement savings.

And yet many people leave this opportunity on the table. That’s a shame, because for 2025 you can use tax deductions of up to CZK 48,000, which can mean a refund of up to CZK 7,200 — and for high-income earners even over CZK 11,000. That’s not an amount anyone would just shrug off.

Employers and business owners can also contribute up to CZK 50,000 per employee in 2025 without paying mandatory payroll levies.

Why should you care?

A lot has been written about the importance of saving for retirement. If you’re not saving yet, you should start as soon as possible. And if you already are, it would be a shame not to take advantage of the support the state provides — not only in the form of contributions for certain products, but especially through tax deductions.

And this is where we get to the heart of the matter: the state is essentially saying, “If you save for retirement, we’ll reduce your taxes.” And that’s an offer you don’t turn down.

How the deductions work (and how much you can get)

Since 2024, a new system of tax benefits for retirement savings has been in place — and it continues in 2025. It applies mainly to three products: the Long-Term Investment Product (DIP), Supplementary Pension Savings (DPS), and certain selected types of life insurance.

The limit is shared and very generous: for 2025 you can deduct up to CZK 48,000 from your tax base across all these products combined.

What does this mean in practice?

• a regular employee taxed at 15% → up to CZK 7,200 back,
• higher-income earners partly taxed at 23% → easily over CZK 11,000.

What do you need to do before the end of the year?

1) Don’t have a DIP or DPS yet? It’s high time to fix that!

To use the deduction, the product must be set up and at least one contribution must be made by 31 December 2025.

If you manage that, you can deduct up to CZK 48,000 from your tax base at the start of 2026 and get back up to CZK 7,200 — or over CZK 11,000 if you have higher income.

It’s the easiest way to boost both your retirement savings and your tax refund at the same time.

2) Already have one of the products? Check your contributions!

Maybe you’re already saving — great! But are you really taking full advantage?

Go through your contributions to DPS, DIP, or life insurance with your advisor. If you’re below the limit, there’s still time to make an additional lump-sum payment and increase your deduction. Just send a one-off top-up of a few thousand crowns and your tax refund will be higher.

In conclusion

Every year, the state gives you a chance to get money back through tax deductions for retirement savings. And every year, many people miss out simply because they don’t act in time. Get in touch with your advisor as soon as possible and review your current setup.

Don’t let the state keep this money — take what you’re entitled to. Your wallet can benefit right away, and your future self will thank you.