Photographers, graphic designers and other creatives in Slovakia and the Czech Republic usually run a trade licence, yet part of their income can also be taxed as author royalties. The split between lump-sum and real expenses, the VAT threshold and the paperwork around equipment decide how much they actually keep.
How do creatives set up their business in Slovakia and Czechia?
In both countries, photographic and graphic services fall under an unqualified (free) trade, so a simple trade licence is enough and no professional exam is required. Most creatives therefore invoice their fees as income from self-employment.
Both tax codes also allow a second route: income from creating a work under copyright law. In Slovakia these are active author incomes under § 6(2)(a) of the Income Tax Act, in Czechia they fall under § 7(2)(a). Genuine creative works – an original photo or a bespoke design – can be invoiced under a copyright contract even without a trade licence, while routine services remain a trade. For the cross-border billing side, see our guide on invoicing abroad from a VAT perspective.
Lump-sum expenses or real records?
Neither country forces a freelancer into double-entry bookkeeping. Slovakia offers a flat 60% expense allowance capped at €20,000 a year, on top of which you still deduct paid contributions. Czechia uses percentage allowances too – 60% for a free trade (capped at CZK 1,200,000) or 40% for author income under § 7 (capped at CZK 800,000).
In both systems the lump sum pays off when your real costs stay below that percentage, which is common once your gear is already bought. In a year of heavy investment into a new camera or computer, keeping real expense records usually leads to a lower tax base. A Czech sole trader under CZK 2 million can also consider the flat-tax regime, where tax and contributions are paid as a single monthly amount.
How are author royalties taxed?
Slovakia applies a 19% withholding tax to royalties paid by a domestic payer under § 43; the income is then settled and left out of the return, unless you sign a written agreement under § 43(14) to receive the full fee and tax it yourself. The old 2% contribution to artistic funds is no longer mandatory since 2023.
The Czech withholding regime is narrower: a 15% withholding tax applies only to author fees for contributions to newspapers, magazines, radio and television up to CZK 10,000 per month from one payer. A normal sale or licence of a photo to a client or a stock platform is taxed in the standard way under § 7, not by withholding.
When must a photographer register for VAT?
The turnover thresholds differ sharply. In Slovakia you become a VAT payer from 1 January of the next year after exceeding €50,000, or immediately once you pass €62,500. In Czechia the registration threshold is CZK 2,000,000 over twelve months.
Cross-border services bite much earlier in both countries. Receiving a service from abroad – stock licences, online ads, foreign software – or supplying a service to a business in another EU state triggers a lighter registration: § 7a in Slovakia, the identified person status in Czechia. Neither makes you a full domestic VAT payer, but EU B2B supplies are then invoiced under the reverse-charge mechanism.
What social and health contributions apply?
Slovak sole traders usually pay no social contributions in the first year; the duty starts according to income, with a reduced micro-contribution for lower earners from mid-2026 and a minimum monthly social and health payment of roughly €425 once standard thresholds apply. Czech freelancers pay monthly advances from the start – around CZK 3,306 for health and roughly CZK 5,005 for social insurance in 2026, with lower minimums for the first two years.
Because creative income swings from month to month, setting money aside for contributions and tax throughout the year is the safest habit in both countries.
What can creatives deduct, and what mistakes to avoid?
Cameras, software licences, cloud tools, studio rent, travel to shoots and professional training are all deductible. The line between an immediate expense and depreciation differs: €1,700 in Slovakia and CZK 80,000 in Czechia. Above it, cameras, computers and laptops are depreciated – over four years in Slovakia and three in Czechia.
The classic mistakes are the same on both sides of the border: mixing private and business gear without any records, forgetting the cross-border VAT registration before the first payment to a stock library, and overlooking that barter – a service in exchange for a product – is taxable income. Clean records of invoices and contracts are what save the most trouble in an inspection.
Not sure whether lump-sum or real expenses suit your creative work, or how to handle cross-border royalties and VAT? Let us walk through it on the real numbers of your business.
FAQ
Do I need a trade licence if I only occasionally sell photos on a stock site?
If the activity is systematic and profit-driven, you need a trade licence. Pure author licence income can be taxed under the copyright rules without a trade, but income from a foreign platform may trigger a cross-border VAT registration (§ 7a in Slovakia, identified person in Czechia). Regular commissioned shooting means a trade licence.
Is the lump sum or real-expense method better for me?
The lump sum wins when your actual costs stay below the allowance percentage – 60% in both countries, within their caps. In a year with a big equipment purchase, real expense records usually give a lower tax base. It is worth recalculating each year against planned investments.
Is every author royalty taxed by withholding?
No. In Slovakia a 19% withholding applies to domestic royalty payments unless you opt out in writing; in Czechia a 15% withholding covers only media contributions up to CZK 10,000 a month from one payer. Most creative sales are taxed in the ordinary self-employment regime.