Investment incentives

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CzechInvest to boost support of investment incentives


Since the public support level of investment incentives is to be reduced from current 40% to 25% next year, CzechInvest wants to provide more effective tools for investment support. As a result, both Czech and foreign direct investment should be increased. CzechInvest’s plans include (1) decrease of minimal amount of new jobs created by implementation of the supported projects in the field of strategic services and technological centres, (2) shorter approval procedures and (3) investment into technological education level.

The investment incentives should be newly accessible even to projects, that bring fewer jobs as long as the projects have a potencial of further development. The idea to decrease a minimal amount of newly-employed should get codified in the Act on investment incentives amendment which is under discussion. A tax benefits increase regarding the income tax and other mandatory payments is proposed as another legislative change to boost the investment incentives.

CzechInvest focus its support on both Czech and foreign investors and strives to ease the steps necessary to take in order to start successful business. The main attention is paid to automotive, airborne and space industry, machinery, electrical engineering, life science, IT and software development. The investors‘ interest in the Czech Republic is said to be stable and no essential decrease in investment level is expected.

Apart from these actions, a merger of CzechInvest and CzechTrade is to be implemented in order to increase the efficiency of business support in the Czech Republic even more.

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