Investment Incentives

Investment projects supported by state aid

What are investment incentives?

Investment incentives are one of the tools supporting business in the Czech Republic.

The incentives are available for the manufacturing industry, technology centres and strategic services centres.

What forms do the investment incentives take?

Corporate income tax relief for 10 years. The opportunity to acquire land (including related infrastructure) from a municipality or regional district at a favourable price. The opportunity to obtain a cash subsidy for newly created jobs up to CZK 200,000 for each job created.

The opportunity to obtain a cash subsidy for training and retraining of employees up to 50% of training expenses.

The possibility of applying for exemption from real estate tax for projects located in preferential industrial zones.

How can we help you?

We will review your investment project and evaluate whether it is eligible for investment incentives. We will advise you on the timing of the investment project and on how to fulfil the requisite conditions.

We will identify investment incentive risks resulting from business restructuring or other business operations.

We will help you prepare the application and negotiate the investment incentive conditions with CzechInvest.

We will review whether you fulfil the general conditions for the investment incentives.

We will review whether you fulfill the conditions for applying for income tax relief. We will assist in case of an inspection of the investment incentives by the Czech Tax Authorities or other supervisory authorities.

We will determine the maximum amount of the investment incentives you can obtain.

Which industry is relevant to you?

Technology centres (R&D)

Business support services centres

Manufacturing industry

Manufacturing of strategic products

What support you can obtain?

The maximum level of public support is set as a percentage of invested eligible costs.

The maximum level of support for large enterprises is (as of 2023) as follows:

20%

Středočeský: Mladá Boleslav, Beroun, Praha-západ, Praha-východ, Nymburk, Kolín, Příbram, Benešov, Kutná Hora Plzeňský: Rokycany, Plzeň, Plzeň-jih, Domažlice, Klatovy, Jihočeský, Vysočina Jihomoravský *

25%

Plzeňský: Plzeň-sever, Tachov Středočeský: Rakovník, Kladno, Mělník

30%

Liberecký, Královehradecký, Moravskoslezský Pardubický Oloumoucký Zlínský

40%

Karlovarský Ústecký

The maximum level of support for medium enterprises is up to 50% (depending on the region). The maximum level of support for small enterprises is up to 60% (depending on the region).

* In the orange region according to the map (Středočeský, Plzeň, Jihočeský, Jihomoravský and Vysočina regions), it isn’t possible to support investments aimed at expanding existing production, except where it would involve a completely new activity for the company.

How can you obtain the investment incentives?

The application is submitted with the relevant enclosures to CzechInvest.

The submission of the application takes 2 to 6 weeks.

The applications for strategic investment incentives are subject to the exclusive approval of the Government of the Czech Republic.

The Government will decide on the granting of strategic investment incentives within 3 months of the submission of the application.

The Ministry of Industry and Trade (“MIT”), in cooperation with other ministries, will assess whether the requisite conditions have been fulfilled within 30 days of the submission of the relevant documents based on its contribution to the country.

Should the Government and MIT approve the investment project, the MIT issues a decision on the granting of the investment incentive.

PLEASE NOTE: the suitability of the investment project is very subjective, and the project will need to adhere to additional criteria.

What are the conditions?

The recipient of investment incentives is obliged to fulfil the General conditions.

The recipient of investment incentives is also obliged to fulfil the conditions under the Income Tax Act. Please see the most important Special Conditions:

Who is our team?

Petr Mašek

Director

petr.masek@pwc.com +420 724 369 356

Denisa Holbová

Manager

denisa.holbova@pwc.com +420 731 637 283

Contact us

How can we help you?

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