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 are the forms of investment incentives?

Corporate income tax relief for 10 years. Opportunity to acquire land (including related infrastructure) from a municipality or regional district at a favorable price. Opportunity to obtain cash subsidy for newly created jobs up to CZK 200 ths. for one created job.

Opportunity to obtain cash subsidy for training and retraining of employees up to 50% of training expenses.

Possibility to apply for exemption from real estate tax if projects located in preferential industrial zones.

How can we help you?

We will review your investment project and will evaluate whether it is eligible for investment incentives. We will advise you on the timing of the investment project and on fulfilling the conditions. We will identify investment incentive risks resulting from business restructuring, etc. We will help you to prepare the application to receive investment incentives and will negotiate investment incentive conditions with CzechInvest. We will review whether you fulfill the general conditions for investment incentives.

We will review whether you fulfill the conditions for applying for income tax relief. We will assist you in the event that there is an inspection of investment incentives by Czech Tax Authorities or other supervisory authorities. We will consult the possibility of maximum drawing of the investment incentive.

Which industry is relevant to you?

What you can obtain?

Maximum intensity of support the maximum amount of public support is set as a percentage of invested eligible costs.

The maximum intensity of support for large enterprises is (from 2022) 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, Pardubický Oloumoucký Zlínský Moravskoslezský

40%

Karlovarský Ústecký

Maximum intensity of support for medium enterprises is up to 50 % (depending on the region). Maximum intensity 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), there is not a possibility to support investments aimed at expanding existing productions, except the production where it would involve a completely new activity for the company.

How to obtain investment incentives?

A submission of the application with relevant enclosures to CzechInvest.

The submission of the application takes from 2 to 6 weeks.

All applications are subject to the exclusive approval of the Government of the Czech Republic. The Government will decide on the granting of investment incentives within 3 months of the submission.

The Ministry of Industry and Trade (“MIT”), in cooperation with other ministries, will assess the fulfillment of relevant conditions and within 30 days from the submission of relevant documents.

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

PLEASE NOTE: the suitability of the investment project is very subjective, and the project needs to follow more 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. The most important Special conditions are included.

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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