Firstly, we would like to wish everyone good health and a positive mind in the current situation. We do believe that all of us will manage through the bad times, and we are going to appreciate things considered to be automatic and sure as well as enjoy the extra time with our family and loved ones.
The ongoing pandemic has brought many uncertainties and questions to our lives. As for our services, we have prepared a summary of the most significant changes and added advice that might help you feel more secure.
Postponement of the payments
- For how long? 3 – 5 months
- Who offers such an option? All the banks on the market
- How to postpone payments? Every bank is proceeding differently, depending on the individual request from the client. Here is how to process it with the leaders on the market:
- Komerční banka:apply here => https://www.kb.cz/cs/obcane/pujcky/odlozeni-splatek
- Česká spořitelna: apply here=> https://www.csas.cz/cs/page/odlozeni-splatek
- UniCredit bank:apply here => https://www.unicreditbank.cz/cs/ostatni/moznosti-odkladu-splatek.html
- Moneta Money bank:apply here => https://www.moneta.cz/odklad-splatek
- Hypoteční banka:you can apply in the online Mortgage zone every clients has an access to
Did you know: Postponing the payments is not negatively affecting your payment history.
BE AWARE: Postponing of payments is influencing the total overpayment of the mortgage in most of the banks. How? Only the principal is postponed, not the interest rate. Please, ask for such an information before making the decision.
A downfall of the rate in the upcoming months? Not so sure.
Even though the CNB decreased the basic interest rate for commercial banks (twice already), according to trustful sources, banks do not intend to “cut “prices in the upcoming weeks. The main goal of the recent CNB rate reduction was to minimize bank losses as economists expect a recession. Further development of the situation in the mortgage market is complicated to predict now. Still, the upcoming weeks will tell us more. One of the possible scenario (surprise for most of people) is stagnating and increasing of the interest rate in upcoming weeks and months. Banks do not feel safe at all in this situation and need to accumulate their financial reserves in times when thousands of people applied for postponing their mortgage payments.
Processing of the mortgage with “e-meetings “
- All the live meetings are being replaced by “skype meetings,” and we have also proceeded to the “electronic” signing of all documents to minimize personal contact.
- All the steps can be managed from the comfort of your homes
- Searching for the property with our assistance
- Verification of your financial options
- Negotiating on above-standard conditions in banks
- Online completion of all the documents
- Copies and scans are enough to start processing the mortgage
- Originals needed just for final approval => we pick it up in your post box, or you can send it to our office
- Negotiating with the bank, seller, real estate, lawyer, etc.
- The option of signing the mortgage loan agreement outside the bank
Longterm visa + resident permits
Due to the state of emergency, there have been many changes in the area of visas and residence permits. These are the most important news for your planned or current stay in the Czech Republic:
Can I leave or enter the country nowadays?
- Entering the country is allowed only to people with the Czech citizenship and valid residence permit/visa => they will face a 14 days quarantine after entrance. People without the permit can’t enter the country.
- Leaving the country – allowed to everyone with no option of coming back during the state of emergency and closed borders (unless you commute to work in the border area)
Are you outside the Czech Republic?
- I have already applied for the visa – Your application has been postponed by the end of the state of emergency if you have received no resolution yet.
- I set up the meeting at the embassy already – Your meeting has been canceled. When the state of emergency is over, you have to set up a new meeting at the embassy. The validity of the long-term visa is automatically prolonged up to the end of the state of emergency.
I’m living in the Czech Republic.
- All foreigners legally living in the Czech Republic can stay here and postpone working on their residency issues. They can continue to work on it when the state of emergency is over!
- The operations of MOI offices are limited
- Office hours = Monday and Wednesday from 9 am to 12 pm
- Be aware that you need to arrange an appointment before visit
- Appointment for such purposes as:
- Applying for the new VISA
- Bridging visa for those travelling out of the country
- Picking up your approved visa
- The other issues/documents can be mailed to MOI
- Appointment for such purposes as:
- Short-term visa: all the applications have been canceled. New application after the state of emergency is over + the borders are open.
- Self-employed: you can submit your tax return and the payments by July, 1st 2020
- Employee card: you have an option to change the employer in less than 6 months after the approval
Are you self-employed? Here are the main updates:
- The deadline for submitting the tax return has been extended to 1st of July 2020
- No need to extend your visa until the end of the emergency, see the section on visas above
- Deduction of minimum deposit on social and health insurance (03/2020-08/2020) => ‘savings’ of 4,896CZK per month
- Nursing for self-employed – newly, there is an option to apply when taking care of children under 13 years of age. The amount = 424CZK/day
Having an option to apply the business loss in 2020 retroactively in your tax bases from 2019 and 2018
What can we help you with currently?
- Consultation of your current situation – what to do, what to watch out for, what to expect, etc.
- Communication with the Ministry of the Interior and your employer
- Setting up the meeting
- Verification of the current state
- Explanation of the current situation to your employer
- Administration support: collecting the documents for prolonging the visa or the change of the visa
- Assistance with the Bridging visa and much more…
Companies and supporting program COVID (credit)
Programs COVID I and II are already gone = we are waiting for program III
- ČMZRB bank guarantees up to 80% of the loan
- amount: up to 15mil CZK
- contribution to the payment of interest up to CZK 1 million
- option of warranty up to 3 years
What costs can be financed?
- wages of your employees and energy costs
- rent payments
- payment of subscriber invoices
- pre-financing of receivables
- purchase of the material and supplies
How can we help you in this matter?
- Cooperating with banks that finance the loans guaranteed by ČMZRB
- Helping with the selection of the bank and entire processing of the loan (administration, communication, etc.)
- Assisting with the settlement of the guarantee from ČMZRB
- Supervising the final withdrawal from the bank to your account
Bonus part: How to stabilize our income in a longterm period
The general rule for keeping financial stability says that people should have access to financial reserves of 3-6 months of net wages. Then the employees (self-employed might face more significant losses in their business) would handle such a situation much better. For accumulating such savings, they should put at least 20% of their salaries aside, which is quite hard for most people. That’s why just 2/5 of households have savings of this amount.
Health issues might also cause an unexpected long-term loss of income. In such a situation, people are struggling not just with the loss of income but also with high costs for treatment, medical devices, etc. The ultimate financial impact is even higher than for people experiencing a state of emergency. How to prevent such situations? Life insurance with an average cost between only 2-4% of your monthly net salary. Such amount would cover all the costs reaching up to hundreds of thousands or even millions crowns depending on the handicap.
What are the main benefits of Life insurance?
- Stable income – keeping your income on the same level due to situations of unexpected fall downs
- Protecting you and your family – from the unfavorable financial conditions connected to an inability to work and additional costs
- Covering health-related costs – reaching up to hundreds of thousands and millions of CZK. Costs of treatment, medical aids, aftercare, etc.
- Providing finances for paying your commitments (mortgage, loans etc…)
- …and much more
Would you like to get more information about this product? We are open to discussion, and free designing of a custom made product matching your needs.
Did you know? Some insurance groups are providing the payment for the inability to work and taking care of your child due to coronavirus? (When meeting several other conditions.)
WOULD YOU APPRECIATE HELP in any of the mentioned areas or any other services we provide? We are here for you every day, even during the pandemic situation. Skype has replaced all the personal meetings to protect everybody from possible threats.
GET IN TOUCH WITH US.
Call +420 603 786 596 or write an email: firstname.lastname@example.org
Take care, and stay optimistic!