Tech Relocation Guide

Taxation (2026)

Income tax:

• 15% up to 1,762,812 CZK (~£57K / ~$72K)
• 23% above (solidarity tax)

Social + health insurance:

• Employee: 6.5% (social) + 4.5% (health) = 11%

Combined effective: 26-34% depending on income band

Cost of Living

Monthly expenses (1-person):

• Rent (1BR city centre): 23,889 CZK (~$1,062)
• Total monthly: ~115,000 CZK (~$5,100)

Taxation (2026/27)

Income tax brackets:

• £0-£12,570: 0% (personal allowance)
• £12,570-£50,270: 20% (basic rate)
• £50,270-£125,140: 40% (higher rate)
• £125,140+: 45% (additional rate)

National Insurance:

• £12,584-£50,270: 8%
• £50,270+: 2%

Combined effective (income + NI):

• Basic rate (£12K-£50K): 28% (20% income + 8% NI)
• Higher rate (£50K-£125K): 42% (40% income + 2% NI)
• Additional rate (£125K+): 47% (45% income + 2% NI)
• Note: Actual total tax paid varies by income — £100K pays ~£29K (29% effective), £200K pays ~£72K (36%), £350K pays ~£140K (40%)

Note: Personal allowance reduces by £1 for every £2 earned above £100K, creating an effective 60% marginal rate between £100K-£125K.

Cost of Living vs Prague

Overall: London is 96% more expensive than Prague

Key differences:

• Rent (1BR city centre): £2,193 vs £1,062 in Prague
• Monthly budget: £6,800 to maintain Prague £3,952 lifestyle

Compensation Multiplier

Break-even: £310K+ gross in London to match Prague £200K lifestyle

Healthcare Costs

NHS (National Health Service):

• Free at point of service — no bills for GP, A&E, hospital procedures
• Funded via taxes: average household pays ~£4,500/year (~$5,700) in healthcare taxes
• Out-of-pocket: <$250/year on average (prescriptions £9.95/item, dental)
• Private health insurance optional: £50-£200/month for faster access

vs Prague: Czech public health insurance ~£600/year, similar out-of-pocket costs

vs US: US employer plans: $500-$1,200/month premium + $1,500-$5,000 deductible + copays. Total out-of-pocket ~$3,000-$8,000/year even with insurance.

Special Considerations

• Path to EU proximity (post-Brexit complications)
• Strong crypto/MEV ecosystem (Gattaca, Wintermute, etc.)
• NHS saves $5K-$10K/year vs US healthcare costs

Taxation (2026)

Federal income tax: 10-37% (progressive, top rate at $578,125+)

New York State tax:

• 4% to 10.9% (progressive)
• Top rate (10.9%) applies to income over $25M

NYC city tax:

• 3.078% to 3.876% (additional for residents)

Combined effective (for $300K income):

• Federal: ~32%
• State: ~6.5%
• City: ~3.8%
• Total: ~42-47% depending on deductions

Cost of Living vs Prague

Overall: NYC is 142% more expensive than Prague

Key differences:

• Rent: 69.8% higher than Prague
• Need $12,000/month in NYC to match $4,591 in Prague lifestyle

Compensation Multiplier

Break-even: $390K+ gross in NYC to match Prague $270K lifestyle

Healthcare Costs

US employer health insurance:

• Premium: $500-$1,200/month (employee share, employer pays more)
• Deductible: $1,500-$5,000/year before insurance pays
• Out-of-pocket max: $5,000-$9,000/year
• Total annual cost: $3,000-$8,000 even with "good" employer plan
• 40% of US adults skip needed care due to cost (KFF)

vs Prague: Czech public insurance ~$800/year, minimal out-of-pocket

Reality: US healthcare adds $5K-$10K/year hidden cost not in tax calculations

Special Considerations

• Highest density of top HFT firms (Jane Street, HRT, Citadel, Two Sigma, Jump)
• Best career progression for systems/low-latency work
• Healthcare costs add $5K-$10K/year on top of taxes
• Total burden: requires $650K+ to clearly win over Prague

Taxation (2026)

National income tax (7 brackets):

• 5% up to ¥1.95M
• 10% up to ¥3.3M
• 20% up to ¥6.95M
• 23% up to ¥9M
• 33% up to ¥18M
• 40% up to ¥40M
• 45% above ¥40M

Surtax: 2.1% on national income tax (reconstruction surtax)

Residence tax (jūminzei):

• Flat 10% (6% prefectural + 4% municipal)
• Charged on prior year's income

Combined effective:

• 45% earner pays ~55% total (45% national + 2.1% surtax + 10% residence)
• 23% bracket → ~35% total

Cost of Living vs Prague

Overall: Tokyo is only 6-12% more expensive than Prague

Key differences:

• Rent (1BR city centre): ¥173K (~$1,150) vs £1,062 in Prague
• Groceries and transport more expensive in Tokyo
• Housing, restaurants, entertainment cheaper in Tokyo

Compensation Multiplier

Break-even: ¥26M+ gross in Tokyo to match Prague ¥27M lifestyle

Why Tokyo punishes: The 55% combined tax on high earners is brutal despite low cost increase.

Healthcare & Social Insurance

Employee Health Insurance (Shakai Hoken):

• Premium: 9.85% of salary in Tokyo (9.21%-10.55% by prefecture)
• Split 50/50: employer pays half, employee pays half
• Ages 40-64: additional 1.62% nursing care premium
• Example: ¥470K/month salary → ¥23,300/month (~$155) employee share
• Coverage: 70% of medical costs (80-90% for children/seniors)

vs Prague: Czech insurance ~$800/year vs Japan ~$1,860/year (comparable)

Note: Japan NHI already included in the 55% total tax figure above (part of social insurance)

Special Considerations

• Underrated: only 12% more expensive than Prague
• But 55% combined tax (includes health insurance) kills net savings
• Healthcare quality excellent, costs reasonable
• Good for ¥20M-¥30M range, marginal above

Taxation (2026)

Income tax (progressive, 0-24%):

• 0% up to S$20,000
• 2% on next S$10,000
• Progressive steps to 24% above S$1M

CPF (Central Provident Fund):

• Employee: 20% (ages 55 and below)
• Employer: 17%
• CPF ceiling: S$8,000/month ordinary wage

Combined effective (for S$200K income):

• Income tax: ~14%
• CPF employee: 20% (on first S$96K only due to ceiling)
• Total: ~24-27% depending on income

Cost of Living vs Prague

Overall: Singapore is 81% more expensive than Prague

Key differences:

• Rent (1BR city centre): S$3,039 vs $1,332 in Prague
• Transport significantly more expensive

Compensation Multiplier

Break-even: S$260K+ gross in Singapore to match Prague S$270K lifestyle

Why Singapore wins: Lowest tax burden (24% top rate + CPF capped) offsets the 81% cost increase better than other cities.

Healthcare Costs

MediSave (CPF Healthcare Account):

• Mandatory: 8-10.5% of salary goes to MediSave (part of CPF 20% employee contribution)
• MediShield Life: mandatory national health insurance, premiums paid from MediSave
• Coverage: significant hospital bills + expensive outpatient treatments
• Out-of-pocket: varies, but lower than US due to public + private hybrid
• Private upgrade: S$200-S$500/month for expat-level private coverage

vs Prague: Singapore healthcare costs similar to Prague (public system efficient)

Key advantage: MediSave funded from CPF (already in 37% total burden), no additional premium like US

Special Considerations

• Best tax efficiency among all cities (24% + CPF capped)
• Growing crypto/Web3 hub
• No capital gains tax (important for equity/token comp)
• Healthcare efficient — MediSave already included in CPF
• Clear winner at S$350K+ gross