Investment incentives in the Czech Republic are available to all domestic and foreign investors. Their purpose is to support the creation of new production facilities or the expansion of existing company operations.
The system of investment incentives and the applicable conditions are governed by Act no. 72/2000 on Investment Incentives and on the Amendment of Certain Acts (the Investment Incentives Act).
The investment incentives system is coordinated and managed by CzechInvest, the agency responsible for supporting investors and investment in the Czech Republic.
Areas receiving support via investment incentives:
- Industry - Launch or expansion of production in manufacturing sectors
- Technology centres - Construction or expansion of research and development centres
- Business support services centres - Establishment or expansion of shared services centres, software development centres and high-tech repair centres
Maximum volume of public funding as a percentage of total eligible costs:
- small enterprises – 45 %
- medium-sized enterprises – 35 %
- large enterprises – 25 %
Forms of investment incentives:
- Corporate income tax relief
- Transfer of land at favourable prices
- Job creation grants *
- Training and retraining grants *
- Grants for capital investment (applicable in the case of strategic investments)
- Exemption from tax on immovable property in concessional industrial zones
* Only available in so-called “A” regions.
The Karviná district and the Bruntál district, both of which are subdivisions of the Moravian-Silesian Region, are classified as “A” regions. Investors in these regions can receive grants of CZK 200,000 (approx. EUR 7,200) per newly created job, in addition to grants for training and retraining (25 % of total expenditure on training and retraining – these grants are not included in the calculation of the maximum volumes of public funding).
Investments in the Moravian-Silesian Region are eligible to receive the maximum possible volume of public funding within the incentives system. Thirteen of the 23 areas within the Region are classified as “Region I” areas, which require a lower level of initial investment in manufacturing sectors in order to qualify for investment incentives. Region I areas thus offer a considerable advantage to investors when compared with other areas.
In comparison with other Czech regions, the Moravian-Silesian Region has a higher number of Region I areas and “A” regions. This means that investors in the Moravian-Silesian Region can benefit from higher levels of investment incentives than elsewhere.