Prikhodko&Partners
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International corporate law
Business Setup and Support in the Czech Republic Confirmation of the origin of funds in the Czech Republic

Taras Miroshnychenko

Head of International Corporate Law and Fintech Practice

E-mail

miroshnychenko@prikhodko.com.ua

Phone numbers

Expert in fintech, crypto, and international corporate law with over 20 years of experience. Specializes in crypto licensing (VASP/CASP), iGaming business support, and international structuring, asset protection, and OSINT analytics for risk assessment and due diligence.

Confirmation of the origin of funds in the Czech Republic

Proof of the origin of funds in the Czech Republic is a prerequisite for transparent financial management and compliance with the law.

The lack of proper documentation can lead to account freezing, denial of banking services, or even legal consequences.

The Czech Republic, as a member of the EU, strictly adheres to international standards for combating money laundering and terrorist financing.

What is proof of origin of funds?

This is documentary evidence of the legality of the source of your finances. Such documents should clearly demonstrate where the funds came from, how they reached you, and that all required taxes have been paid on them.

Where you may need to verify income

When communicating with banks and when opening a bank account, Czech banks are required to check the sources of origin of significant amounts of money. The first deposits when opening an account and large receipts after that are checked especially carefully.

The bank may request documents not only when opening an account, but also throughout the entire period of service.

In connection with AML/CFT inspections or financial monitoring, financial institutions in the Czech Republic regularly conduct inspections within the framework of Anti-Money Laundering and Countering the Financing of Terrorism (CFT).

Such inspections may be initiated as a regular procedure or upon detection of suspicious transactions.

When interacting with exchangers, crypto exchanges, and other centralized crypto services, according to updated EU legislation, cryptocurrency platforms are also required to conduct KYC (Know Your Customer) procedures and verify the origin of customer funds, especially for significant amounts.

At the request of the tax authority in the Czech Republic, the Czech Financial Administration (Finanční správa) has the right to demand confirmation of sources of income as part of tax audits or in case of suspicion of tax evasion.

How to correctly confirm income

The key aspect is to demonstrate the full chain of funds.

It is not enough to simply provide a document stating that the money is available – it is necessary to demonstrate:

the source of the funds (where they came from);
how they were withdrawn from the bank account in the country of origin;
how they crossed the border (if we are talking about an international transfer);
how they ended up in a bank account in the Czech Republic.

Czech financial institutions pay special attention to transactions from countries considered risky from an AML point of view.

Supporting documents

A bank statement is one of the most reliable documents. It should have the official bank logo, a bank seal or digital signature (for electronic statements), and a clear reflection of the movement of funds.

Checks, receipts for the sale of property, cash withdrawals, and documents for money transfers can also serve as confirmation.

Contracts, declarations, such as employment contracts and income certificates, purchase and sale contracts (real estate, vehicles, business), inheritance and gift agreements, tax returns are important supporting documents.

It will also be useful: TAX ADVICE IN THE CZECH REPUBLIC

The importance of legality of income and tax payment

Czech financial institutions and tax authorities pay particular attention to confirming that your income was obtained legally and that all due taxes have been paid (in the country of origin or in the Czech Republic, depending on the type of income and tax treaties).

Even if you have all the documents on the origin of the funds, but no proof of tax payment, this may raise additional questions from the financial and tax authorities.

It is recommended to keep all financial documents for at least 10 years, prepare a package of supporting documents in advance for significant money transfers, consult with a tax specialist regarding your specific situation when moving to the Czech Republic, and if it is impossible to fully document the origin of historical savings, consider the possibility of tax legalization.

Following these recommendations will allow you to avoid problems when interacting with the Czech financial system and ensure the transparency of your financial transactions.

Contact the Law Firm Prikhodko & Partners and we will help you with the preparation of all necessary documents to confirm the origin of funds, consultation on your individual situation, and support in the process of interaction with Czech financial and tax authorities.

Calculate the cost of services

1 question

Do you need confirmation of funds in the Czech Republic?

Yes

2 question

Are you planning to place funds in the Czech Republic?

Yes

3 question

Do you need help in confirming your funds in the Czech Republic?

Yes

4 question

Do you need advice on placing funds in the Czech Republic?

Yes

Is company registration possible without a personal visit to the Czech Republic?

Yes. The procedure is fully adapted for remote launch. All legal actions are performed on the basis of a power of attorney, notarized and, if necessary, apostilled in your country.

Why shouldn't you use a share capital of 1 crown?

Although the law allows a share capital of 1 crown, minimal capital reduces trust from banks and European counterparties, and also creates problems when passing banking compliance (AML). To confirm the seriousness of intentions, it is recommended to contribute an amount of at least 10,000 – 100,000 crowns, which can be used for the company’s operational needs after opening the account.

What is the difference between an s.r.o. and a sole proprietor (OSVČ)?

Apart from the issue of limited liability, the key difference lies in taxation. OSVČs in the Czech Republic are eligible for a single tax regime (paušální daň), which in 2026 requires a fixed monthly payment of between 9,162 and 27,139 crowns, depending on income. However, the status of a sole proprietor limits business scaling and complicates interaction with large B2B clients, who prefer to work with VAT payers in the form of an s.r.o.

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