Published on and written by Cyril Jarnias
Moving to the Czech Republic, whether for an expat contract, studies, or an entrepreneurial project, quickly raises a key question: how to manage your money day-to-day in a banking system you don’t know. The country has a solid, highly digitized banking sector, but it is also quite demanding in terms of compliance and sometimes inflexible with foreigners. Understanding how banks work, fintech alternatives, taxation, and even access to mortgage credit helps avoid costly mistakes.
This article provides a comprehensive overview of banking and financial services useful for expats, based on the most recent data available on the Czech sector.
A Solid, Conservative… and Highly Digitalized Banking Landscape
The Czech Republic has been a member of the European Union since 2004 but has not adopted the euro. The local currency is the Czech koruna (CZK). The banking system is described as liquid, profitable, stable, and rather conservative. Most major banks are owned by foreign groups from Western Europe, which helped stabilize the sector after the banking crises of the 1990s.
Deposits are guaranteed up to the equivalent of 100,000 euros per customer per bank in the Czech Republic, in accordance with European rules.
Even though the country is not a major international financial center, its banking sector is advanced in terms of digitalization: high-performance mobile apps, electronic signatures, online KYC, open banking via the PSD2 directive, and over 200 Electronic Money Institutions (EMIs) complement the offerings of traditional banks.
In this context, the foreign presence is far from marginal: more than 500,000 foreigners reside in the Czech Republic, including over 150,000 in Prague alone. This population drives a strong demand for banking services tailored to non-residents and newcomers.
Why Opening a Local Account is Almost Essential
For an expat, opening a local bank account in the Czech Republic is not just a convenience; it’s often an unavoidable step once the initial setup phase is over.
Several practical reasons explain this necessity. Many employers require a CZK account with a local bank for salary payments. Landlords prefer rent to come from a Czech account, which also facilitates setting up standing orders for rent, electricity, telecom services, or transport passes.
Opening a local bank account in the Czech Republic allows you to avoid foreign ATM withdrawal fees and unfavorable exchange rate margins when using a foreign card. Furthermore, for a real estate project, having a local banking history and a “rodné číslo” (Czech identification number) significantly simplifies the process of obtaining a loan and may even improve its terms.
Finally, some banks offer no-fee accounts or very affordable packages, and even account opening bonuses, which limit the cost of this step.
Major Banks for Expats: Who Does What?
The sector is highly concentrated: a few institutions dominate the market, particularly Česká spořitelna, ČSOB, Komerční banka, Raiffeisenbank, MONETA Money Bank, Fio banka, Air Bank, and UniCredit Bank. Each has its own strategy, level of English-language services, and benefits for expats.
Here is a summary table of the main players mentioned and their relevant offerings for a newcomer.
| Bank | Group / Ownership | Flagship Product for Individuals | Key Strengths for Expats |
|---|---|---|---|
| Česká spořitelna | Erste Group (Austria) | “Standard” Account (no management fees) | Largest customer base, network of 400+ branches, services in English, multi-currency |
| ČSOB | KBC Group (Belgium) | “ČSOB Plus Account” | International client department, efficient SEPA, detailed international transfers |
| Komerční banka (KB) | Société Générale (France) | “Start” Pack free | Packaged offerings, services in English, strong corporate presence |
| Raiffeisenbank | RBI (Austria) | Free checking account | English-speaking staff, e-banking/app in English, multi-currency accounts, free withdrawals |
| MONETA Money Bank | Czech bank (ex-GE Money) | “Tom Plus Current Account” | Free withdrawals, high ATM density, good ratings in “Bank of the Year” awards |
| Fio banka | 100% local Czech bank | Free Fio checking account | Very low costs, multi-currency, fixed-fee international transfers |
| Air Bank | PPF Group | Single free checking account | Modern application, free withdrawals, good reputation among foreigners |
| UniCredit Bank Czech Rep. & SK | UniCredit Group (Italy) | “Start” Account | International Client Center in Prague, multilingual team |
Accessibility varies from bank to bank. Česká spořitelna is known to accept account opening with just a passport for certain profiles, while Air Bank may open an account for some non-Europeans without a visa, provided they present two photo IDs and come with a Czech speaker who can help understand the documents.
Identification requirements and language services vary by bank. MONETA Money Bank systematically requires a passport and a second ID. On the other hand, ČSOB and Raiffeisenbank are more structured for welcoming international clients, offering services in multiple languages (English, German, French, Italian, Russian).
Account Opening Conditions: What Banks Really Ask For
In practice, requirements vary not only from one bank to another but sometimes from one branch to another, or even from one advisor to another. Nevertheless, several elements consistently come up.
A valid passport is essential for any foreigner. Many banks also require a second photo ID, such as a driver’s license, national ID card, or residence permit.
To prove your address in the Czech Republic, several documents are accepted: a lease agreement, an electricity bill, an official certificate of residence, or any other administrative attestation. Personal circumstances influence the type of additional document required. A student will generally need to provide a university enrollment certificate to open a specific so-called “student” bank account. An employee, especially if from a non-EU country, may be asked for their employment contract or a certificate issued by their employer.
For non-EU nationals, the bar is higher: a visa or residence permit valid for at least 90 days, proof of ties to the country (employment contract, university admission letter, rental agreement…). Profiles from countries subject to sanctions (e.g., Russia, Iran, Syria) may have their applications analyzed more extensively.
The initial deposit required to open a bank account in the Czech Republic, expressed in Czech korunas (CZK).
For remote opening, options are limited. Some institutions accept online pre-opening but then require an in-branch visit for identity verification. Others require a rodné číslo or permanent resident card to finalize the process remotely. In some cases, a local representative can be authorized via power of attorney.
Rodné číslo and TIN: The Administrative Detail That Changes Everything
As in the rest of the European Union, Czech banks must collect information on the tax residency and Tax Identification Number (TIN) of their clients to comply with automatic information exchange rules (CRS, FATCA for Americans, etc.).
In the Czech Republic, the TIN (Tax Identification Number) for individuals is generally the ‘rodné číslo’, a ten-digit birth number present on the residence card. It’s important to note that this number is not issued immediately. After registering with the foreign police, it usually takes a waiting period of one to three months to obtain it.
For companies, the TIN is the Daňové identifikační číslo (DIČ), issued by the tax administration.
Having a rodné číslo not only facilitates account opening and certain banking operations but also applications for a mortgage loan, subscriptions to certain services, or administrative procedures. Many expats underestimate this point and find themselves stuck with formalities until this number is assigned.
Bank Fees, Cards, and Digital Services: What to Expect
Czech banks typically charge monthly account maintenance fees, often around sixty korunas for basic packages, although several institutions offer free packages under certain conditions (minimum monthly income, minimum card usage, etc.). Withdrawals from the bank’s own ATMs are often free, but withdrawals from other networks or abroad may be charged.
Information on costs and regulations for domestic and international transfers in CZK and euros.
Transfers in Czech korunas within the country are generally low-cost.
To the EU/EEA, these transfers are charged at the same rate as domestic euro transfers, in accordance with European regulations. They are therefore very cheap, or even free in some banking packages.
Digital services are well developed: web interfaces, mobile apps, transaction confirmation via notification or code, open banking allowing connection to other services. Some banks have started charging for SMS authentication, encouraging the use of app notifications instead. For an expat, the availability of an English-language interface is a decisive criterion: Raiffeisenbank, ČSOB, Česká spořitelna, Komerční banka, or Fio banka offer digital services in English, with varying app and support quality.
Debit cards are systematically offered, credit cards much less so. Getting a credit card as a new resident may require several months of Czech bank statements and proof of regular salary. It’s far from an American-style model where the credit card is the basic tool of daily life.
New resident in the Czech Republic
Managing International Transfers and Exchange: Banks vs. Fintech
For an expat, the crux of the matter is often the ability to transfer money from one country to another at a good exchange rate and without excessive fees. Czech banks offer the standard international transfer functions, but costs and delays vary greatly.
ČSOB, for example, clearly distinguishes SEPA payments in euros from other “foreign” payments. An outgoing online SEPA transfer costs 5 CZK, just like a payment to another ČSOB account in the Czech Republic or Slovakia. But an international transfer outside SEPA is charged at 1% of the amount, with a minimum of 250 CZK and a maximum of 1,500 CZK, to which additional in-branch fees may apply.
Percentage charged by ČSOB on an OUR-type international payment, with a minimum of 300 CZK and a maximum of 2000 CZK.
Fio banka adopts a simpler fee structure: 200 CZK for most international transfers in foreign currency under SHA/BEN codes, 500 CZK under OUR code, while SEPA payments in euros to Slovakia or within the SEPA zone are free. Incoming transfers in foreign currencies are generally charged 100 CZK, except euros from Slovakia or other countries which may be free.
On top of this is the issue of exchange. Many banks offer unfavorable conversion rates, with a significant spread compared to the market rate. For expats who receive a salary in another currency or need to regularly send money to their home country, these margins can be costly over time.
For money transfers and payments abroad, fintechs like Wise, Revolut, Bunq, Vivid Money, Citfin, MultiPass, Airwallex, and iBanFirst offer alternatives. They provide multi-currency accounts, international cards, and transfers at market rates, with transparent and often reduced fees.
Revolut, for example, claims over 65 million clients and allows transfers in over 70 currencies to more than 150 countries. Transfers in the local currency within the same SEPA zone are free, non-SEPA transfers are charged modestly, and paid plans offer significant fee discounts (up to 100% for the Ultra offer). Wise offers multi-currency accounts that can hold over 50 currencies, with local bank details in ten major currencies, and charges for conversions at the mid-market exchange rate plus a small percentage.
For an expat, the most effective combination often consists of:
– using a Czech bank account for salary, local bills, and to reassure employer and landlord;
– coupling this account with a solution like Wise or Revolut for international transfers and spending abroad, to avoid the exchange rate margins of traditional banks.
Multi-Currency: Optimizing International Flows from the Czech Republic
Beyond a simple CZK account, several Czech players offer multi-currency accounts, very useful for those juggling multiple currencies.
Česká spořitelna, for example, offers a foreign currency account allowing deposits, withdrawals, and payments in different currencies: euro, US dollar, Swiss franc, British pound, Japanese yen, Canadian dollar, Danish krone, Swedish krona. A single multi-currency account can be linked to a “multi-currency” card usable in all these currencies, reducing unnecessary conversions when the expense is made in the same currency.
Raiffeisenbank offers personal and business accounts that can hold up to 16 currencies under a single account number. The AKTIVNÍ account allows management of currencies like CZK, EUR, and USD. Domestic transfers and euro transfers within the EEA are free, and the first two payments outside the EEA are waived each month. Withdrawals from ATMs, both in the Czech Republic and abroad, are unlimited from Raiffeisenbank’s fee perspective, but foreign banks may apply their own charges.
Niche players like Citfin mainly target internationally-oriented businesses: up to 28 currencies under a single IBAN, multi-currency accounts with no maintenance fees, competitive exchange rates, euro transfers or domestic payments charged a few korunas, and the ability to interconnect with the company’s accounting software.
For a self-employed individual or an expat SME managing flows between CZK, EUR, USD, and other currencies, these local multi-currency accounts can drastically reduce conversion costs and transfer delays, especially when combined with global platforms like Wise Business, iBanFirst, or Airwallex.
Compliance Rules, KYC, and Anti-Money Laundering Vigilance
The downside of a conservative and solid banking system is a high level of vigilance regarding anti-money laundering (AML) and counter-terrorist financing (CTF). Czech banks are obligated to “know their customer”: identify beneficial owners, understand the source of funds, and check the consistency of flows with the declared profile.
Transactions deemed atypical may be temporarily blocked or reported to the Financial Analysis Unit. For clients from countries considered higher risk, these checks may be enhanced.
For an expat, this means being ready to document the origin of significant funds (sale of real estate abroad, inheritance, personal savings), especially when subscribing to an investment product, opening a business account, or during a real estate acquisition. Anticipating these requests, keeping supporting documents translated into Czech or English, avoiding opaque structures and unnecessary complex setups is often the best way to avoid delays.
Mortgage Loans: Accessing Property as an Expat
The Czech real estate market, especially in Prague, is known to be expensive. Purchase prices reach about 13.3 times the average gross annual salary, ranking the Czech Republic among the EU countries where access to property is most difficult.
Yet, mortgage credit remains accessible to foreigners under certain conditions. Thirteen banks offer mortgage loans, regulated by the rules of the Czech National Bank. These rules were tightened in 2022 (caps on debt-to-income ratio and debt service), then eased from 2024‑2025, notably with the removal of the cap on the total debt amount relative to annual income.
Access conditions to credit vary depending on your nationality. EU nationals can generally obtain a loan with a simple temporary residence certificate. For third-country nationals, a permanent residence title is often required. However, some institutions accept financing non-residents via the creation of a Czech company (s.r.o.) or with enhanced guarantees, such as a term deposit or a higher personal contribution.
Banks assess repayment capacity through several indicators: share of the monthly installment in net income, level and stability of income, amount of the down payment (at least 10%, ideally 20%), quality of the collateral (the real estate itself). For foreigners without permanent residence, the loan-to-value (LTV) ratio is often capped at 60‑70%, requiring a larger down payment.
Average interest rates reached about 4.8% in late 2024 before decreasing again.
For an expat, getting assistance from a broker or bank advisor accustomed to international files is often crucial. It’s not just about comparing rates, but also navigating the residence requirements, analysis of foreign income, treatment of tax credits, and the subtleties of the real estate cadastre (“Katastr nemovitostí”).
Insurance, Savings, Investment: Completing Your Financial Strategy
An expat’s financial management is not limited to a checking account. The Czech Republic has an insurance and savings market regulated by European rules (Solvency II, insurance service directives) and supervised by the ČNB and the Ministry of Finance.
Health insurance is mandatory for all residents, via a public system or a private contract for certain groups, such as some non-Europeans. Furthermore, complementary products like life insurance, borrower’s insurance, disability insurance, and pension savings schemes are common. The latter often offer tax advantages, such as partial deductibility of contributions or tax exemption after a certain period.
Many expats turn to advisory firms specializing in international clientele, which offer financial plans integrating savings in CZK and foreign currencies, portfolio management, tax optimization between home and host countries, and even assistance with transferring foreign pension plans.
In this area, as in the rest of the Czech financial market, contract texts are often in Czech, reinforcing the importance of a trusted contact who masters English or French and can clearly explain the commitments, fees, risks, and tax implications in both countries.
Personal Taxation: What Every Expat Must Integrate into Their Banking Management
The Czech tax system is a mixed type, with a personal income tax at 15% up to a certain annual income threshold, then 23% beyond that. The threshold for the higher bracket corresponds to 36 times the average monthly salary, i.e., 1,676,052 CZK for the year 2025. Professional income earned in the Czech Republic is taxable, whether from a local or foreign employer, provided the work is performed on the territory.
Number of days of stay in the Czech Republic beyond which an expat is generally considered a tax resident.
From a banking perspective, certain rules are particularly important. Interest earned on Czech accounts and deposits is generally subject to a 15% withholding tax. For a non-resident who proves tax residency in another state, this withholding can be adjusted according to the terms of the tax treaty. Dividends are also taxed at 15% at source, or even 35% when paid to residents of countries without a double taxation treaty or without a tax information exchange agreement.
An annual tax return is mandatory above a certain income threshold, even in case of withholding tax. Tax credits and deductions exist (mortgage interest, certain insurances, donations), but access to them is conditional. For a non-resident, at least 90% of worldwide income must come from Czech sources to benefit.
For American expats, the situation is even more complex: they remain subject to US tax on their worldwide income, must declare their foreign accounts, and must coordinate the mechanisms of foreign earned income exclusion, tax credits, and tax treaties with Czech rules. Here again, the bank is only one link in a much broader tax ecosystem.
Choosing Your Mix: Local Bank, Fintech, Multi-Currency, and Advice
Faced with the complexity of the system and the diversity of needs (salary, rent, international transfers, investment, real estate project, tax optimization), the most effective solution for an expat in the Czech Republic rarely relies on a single institution.
A pragmatic financial management scheme might look like this:
Recommendations for structuring your bank accounts based on your daily, professional, and cross-border needs.
Open an account with a local bank (Česká spořitelna, ČSOB, Raiffeisenbank, Air Bank, Fio…) for salary, rent, bills, and to build a credit history.
Optionally a multi-currency account in a Czech bank to limit conversions if your income is in euros/dollars or multiple currencies.
Open an account with a fintech (Wise, Revolut, Bunq) to benefit from better exchange rates, international cards, and facilitate transfers to your home country.
For self-employed/entrepreneurs: a professional multi-currency account with a specialized player (Citfin, MultiPass, iBanFirst, Airwallex) to manage international business flows at lower cost.
If necessary, get assistance from a local financial/tax advisor accustomed to expats to coordinate accounts, investments, and tax obligations between the two countries.
In a banking environment that is conservative yet highly digital, and in a country where the language barrier and bureaucracy can be surprising, this combination of players allows leveraging the strengths of each: the security and local recognition of traditional banks, the flexibility and low cost of fintechs, and the expert advice from expatriation specialists.
The Czech Republic offers a solid financial framework for effective international management, suitable both for an expatriation of a few years and for a long-term life project. It is essential to take the time to understand its specific rules and tools.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
