“Schwarz System” and B2B in Czechia 2026: Risks for Foreign Freelancers
Invoicing as a sole trader while working like an employee is a long-standing enforcement priority in Czechia. One major client alone is not automatically illegal — inspectors look at the full picture: instructions, schedule, integration into the team, and economic dependence.
Structure B2B cooperation in writing
Cooperation agreement (smlouva o spolupráci) — scope, deliverables, acceptance and liability in Czech.
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What inspectors are looking for
Dependent work performed outside an employment relationship is prohibited. Signs include fixed personal performance, employer-like control over hours and place, use of employer equipment, and economic dependence on one client.
A genuine B2B relationship usually means defined deliverables, ability to refuse tasks, own tools, multiple clients over time, and invoicing tied to results rather than a fixed monthly “salary”.
Sanctions
Allowing illegal work can lead to a fine of up to CZK 10,000,000 for a legal entity or self-employed person, with a minimum of CZK 50,000, plus retrospective social security and tax assessments.
What to put in writing
A cooperation or service agreement should describe scope, deliverables, acceptance, IP, liability and termination — not just a monthly invoice template.
If the relationship is actually employment, use an employment contract or DPP/DPČ instead of pretending it is pure B2B.
Clear B2B cooperation with defined outputs; standard employment or DPP where appropriate.
Ongoing labour inspection, reclassification, large back payments of insurance.
Is it actually employment?
If the relationship looks like dependent work, use an employment contract or DPP instead of invoicing as OSVČ.