What is difference between temporary and permanent residence permits - is health insurance mandatory? Can I buy a property or a mortgage? In this article, Stephen has collected all information on this topic using example of Czech Republic so that you can understand it.
Temporary residence permit
According to Czech law, foreigners can reside in Czech Republic without a visa if they are EU citizens. This means that they can stay in country without any special permission, with only a travel document or identity card. At same time, only requirement for EU citizens wishing to reside in Czech Republic for more than three months is to notify Aliens Police at place of residence. This procedure must be completed within 30 days of entry into Czech Republic.
EU citizens can apply for a residence permit, which is useful for practical reasons when official proof of residence in Czech Republic is required (eg for social security or employment purposes). A residence permit may be granted for a specific purpose (work, business, scientific research, family reunification or study) or without any purpose. If EU citizens apply for this document for special purposes, they must provide them with a document confirming purpose of their stay.
Have a residence permit
Free access to labor market (no employee card or blue card required)
Use your travel document or ID only for travel within Schengen area on a non-commercial basis
No health insurance required
You can register your car to get a Czech registration number
You can apply for a bank loan or mortgage
Contracts with certain mobile operators or Internet service providers
Get a driver's license
Permanent residence
After 5 years of continuous residence in Czech Republic, every third-country national can apply for a permanent residence card. However, deadline is different for family members of EU citizens or persons with a long-term study visa. By obtaining permanent residence, people basically enjoy same rights and obligations as citizens of Czech Republic, but there are some exceptions. For example, they are not allowed to vote or work in Czech armed forces.
If you have a residence permit:
You can apply for a bank loan or mortgage
Free access to labor force
Start your own business
Get social support in a difficult life and receive a pension when you reach retirement age in Czech Republic
However, once you receive a residence permit, you will be covered by Czech health insurance system and will be responsible for paying insurance premiums. Medical insurance must be reimbursedwhether or not you have a valid health insurance contract. For employees, payment of bonuses becomes responsibility of their employer.
May 18, 2023
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