New limits, higher contributions, stricter mortgages — 2026 will be a big year

The year 2026 will bring several changes that will affect both your personal and business finances. We would like to highlight the most important updates so you can prepare for them in advance.

1. Increase in Minimum Wage and Its Impact on Benefits

As of January 1, 2026, the minimum gross monthly wage will rise to CZK 22,400. This change is important not only for employees earning minimum wage, but it also has a broader impact, as some social benefits and allowances are tied to this amount.

Recommendation: If the minimum wage level affects you or your loved ones, it’s a good idea to check ahead of time how these changes may influence your income and benefits.

2. Stricter Rules for Investment Mortgages from the Czech National Bank

The Czech National Bank (CNB) is recommending that banks tighten the conditions for investment property mortgages starting April 1, 2026. This mainly concerns limits such as the loan-to-value (LTV) ratio and the debt-to-income (DTI) ratio. The goal is to cool down the investment property market and slow price growth.

Recommendation: If you are planning to purchase an investment property with a loan, it’s crucial to act quickly. Until April 1, 2026, you can still benefit from the current, more lenient conditions. After this date, financing will become more demanding.

3. Changes to the Flat-Rate Tax Regime for Self-Employed Individuals

Many self-employed individuals using the flat-rate tax regime will face higher contributions in 2026. The flat-rate monthly payment for those in the first band will increase by CZK 1,268 to CZK 9,984 per month.

Recommendation: If you operate as a self-employed person under the flat-rate regime, check which income band applies to you and calculate the impact on your cash flow. Even with the increase, the flat-rate tax may still provide meaningful administrative relief.

4. Mandatory Employer Contribution to Pension Savings from January 1, 2026

Employees in demanding professions (Risk Category III) are legally entitled to an employer contribution to their pension savings. If they work at least three shifts in a hazardous environment in a given month and apply for the contribution, they will receive 4% of their monthly assessment base. This contribution can be used only for pension insurance or supplementary pension savings, up to a limit of CZK 50,000 per year (combined with other products such as life insurance). The advantage is that the contribution is tax-exempt, not subject to social or health insurance, and grows in the same way as personal deposits.

5. Obligation to File a Real Estate Tax Return

If you acquired a property in 2025 (e.g., through purchase, gift, inheritance), you are required to file a real estate tax return at the beginning of 2026.

Don’t forget that preparing for these changes in advance is key to maintaining financial stability. If you have specific questions, feel free to reach out — I’ll be happy to help you with personalised planning.