Investor Presentaiton
Attracting new investment
Over the past few years, the Czech Republic has
significantly increased its focus on both green
field investments and the expansion of existing
investments.
It currently has the most positive attitude to
incoming investors in its history.
Investors can obtain the following financial
benefits:
― investment incentives - tax
holiday cash grants;
subsidies from EU funds - cash grants;
R&D tax allowances;
― education tax allowances.
All benefits are provided according to the law
and transparency rules, which are in compli-
ance with EU regulations. In this respect, some
measures have been redesigned further to
a change of EU rules in 2014. EU regulations
have generally become stricter and to a certain
extent limit the granting of incentives by indi-
vidual member states. The Czech government
responded to the new rules with an amend-
ment to the Czech Act on Investment Incen-
tives, effective since May 2015. The aim of the
last amendment is to increase the attractive-
ness of investment incentives for investors
and to reduce the impact of the new EU rules
on them. The information below is based on
the new legislation.
Investment incentives
Forms of support
Incentives are provided in the following forms:
corporate income tax relief for
up to 10 years (tax holiday);
employment subsidies in the form
of cash grants for job creation and
training (only available in regions
with high unemployment rates);
― cash grants for strategic projects;
availability of land at discounted prices;
exemption from real estate tax
in selected industrial zones.
Main conditions
The main conditions for granting investment
incentives differ depending on the supported
activity.
Manufacturing industry:
establishment of a new manufacturing
plant, or expansion of an existing
plant, including its modernization and
diversification of product portfolio;
― minimum investment in tangible and
intangible assets of CZK 100 million
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