Investment Incentives and EU Funds

Investment Incentives

Czech Republic offers investment incentives and business support through several schemes.Investment Incentives Scheme for investors in manufacturing facilities and for business support services and technology centres.

Estimated number of direct foreign investments until year 2010 is worth approximately EUR 4 billion annually.

Corporate tax relief for:

• New established companies - full tax relief for 10 years
• Existing, expanding companies - partial tax relief for 10 years

Job - creation grants:

• CZK 100.000,- per employee in the district where the unemployment rate is at least 25% above the national averages, minimal invested amount CZK 150.000,-
• CZK 200.000,- per employee in the district where the unemployment rate is the highest, minimal invested amount CZK 100.000,-

Training grants:

• Up to 35% of the training costs in the region where the unemployment rate is higher than the country average.

The total amount of investment incentives (excluding the training grants) must not exceed 50% of the investment into the long-term tangible and intangible assets.

The Region also disposes of new industrial zones and prepares other projects and invested incentives which will be supported either by European Union funds or by the Region. In following period of 2007-2013, the Region can draw the EU subsidies directly.

EU Funds

European Fund of Regional Development

Serves for economic, structural and regional policy development

National development plan (2007 - 2013) includes:

Operational programs - serves as basic strategy for different areas that are directly supported from the structural funds and to create the merits of regional and structural policy of the EU.
Basic economic infrastructure, research and development, technological innovations, environment protection, international cooperation.
One of the operational programs concern "Investment and Inovation" with the global aim of increasing the competitive strengts of the Czech economy and approach the industrial and service sector to the level of the front industrial European countries

Regional programs (European Regional Development Fund)
Regional, economic and social development programms of structural affected areas (Northwest, Moravia-Silesia region), further support the manufacture investment (creation of new jobs), infrastructure, education, environment, research and development
Governed by Ministry of Industry and Trade
Intermediated, among other subjects, by CzechInvest and CzechTrade

European Social Fund
Support the area of employment and human resources - integration, adaptation, stability

European Agriculture Guidance and Guarantee Fund
Support the backcountry, renovation, farming, the quality of agriculture production, backcountry infrastructure, landscape protection and prevention from natural disasters.