Tax savings and state support in the Czech Republic

Two products, one shared tax limit

DPS is a pension fund that comes with a contribution from the state. DIP, running since 2024, is a tax wrapper you can put ordinary funds or ETFs into. Only DPS gets the state contribution. Only DIP lets you choose freely what you invest in. Both give you the same tax deduction, and that deduction shares a single annual limit.

Do foreigners qualify?

Anyone can open either product, whatever their passport says. The state contribution to DPS is the narrow part: you need permanent residence in the Czech Republic, or residence in an EU or EEA country combined with participation in Czech pension insurance or Czech public health insurance. The tax deduction follows a different rule and depends on you being a Czech tax resident. So a non EU employee on a long term permit often cannot get the state contribution but can still take the full deduction, which usually makes DIP the better place to start.

What the state adds and what you save on tax

Figures apply to 2026. The 7,200 CZK is 15 percent of 48,000 CZK, so it depends on having enough taxable income in the first place.

When you can take the money out

Both products share the same double condition: at least 120 months, and age 60. Take the money earlier and you repay the deductions claimed over the last ten years, and with DPS you also return the state contributions. This is not the place for your deposit on a flat or your emergency fund.

What people most often miss

• The employer contribution is a deductible cost for the company, so it is negotiable in the same way salary is.
• The 48,000 CZK limit and the 50,000 CZK limit are two different things. One is your deduction, the other is what your employer can send tax free.
• DIP can hold ordinary funds and ETFs, so low cost investing and the tax break do not have to be a trade off.
• Securities held for more than three years are already exempt from income tax without DIP. Over a short horizon DIP earns you nothing.
• Product fees can eat more than the tax break gives you. Check both together, not separately.

Your Czech pension record is worth checking

Every year you work here counts towards a Czech state pension, and the record kept by the social security administration is not always complete. Since January 2026 the overview is no longer posted to you. You find it in the Moje konto service on the ePortal of the Czech Social Security Administration, using bank identity, a data box or the Identita obcana login. It shows your total insured periods and, from 1986 onwards, the assessment bases. Missing periods can be submitted online and once a year you can ask a caseworker to review the whole account.

Years worked in another EU country are not lost, they are coordinated between the systems, but they have to be claimed. Periods with employers that no longer exist are the hardest to prove, so the earlier you look, the better.