Czech Republic Encouragement LawsThe Czech Republic is one of the most successful states in Eastern Europe in all that concerns attracting foreign investors.
The Czech Republic is particularly attractive to investors for the following reasons, among others:
- An efficient infrastructure - principally in all that concerns the railway network that has been significantly improved and has direct links to most European centers.
- A skilled work force - despite the reduction in economic output since 1945, it should be remembered that between the two World Wars, Czechoslovakia was ranked seventh in the world in respect of industrial development.
- The work force is comparatively cheap if cost is compared to output.
- A high credit rating - the Czech Republic has a very high credit rating in the world credit market compared to other Eastern and Central European states.
- The following are numbered among the large overseas investors: Coca Cola, Volkswagen, Daewoo, Danone, Pepsi Cola,Siemens, Tesco and others.
Czech Investment AgenciesWith the aim of encouraging foreign investment, an investment encouragement network was set up.
The agencies provide assistance, among others matters, in:
- Providing investors with information
- Help in dealing with investment documents and facilitating bureaucratic procedures.
- Locating a defined area for the investing company
- Locating Czech investors / joint ventures.
- Locating potential suppliers in the Czech Republic.
- Accompaniment to the investment site.
- U.K. (London)
- France (Paris)
- U.S.A. (Chicago)
- Germany (Dusseldorf)
- Japan (Yokohala)
Czech Republic Assistance for Foreign InvestorsIn order help create employment, particulary in development areas in the Chech Republic, relief is offered for foreign residents.
The total incentives, except training grants, are up to 40%-60% of the investment.
The relief is as follows:
- Corporate Tax Exemption -5 years.
- Grants per employee - to a maximum of CZK 50,000 for a new employee.
The amount of the grant depends on the development area.
- Training grants - up to 35% of the cost of training.
- Infra-structure supplied at low cost.
- Exemption from customs duty on imported machinery and equipment.