Industrial production
Entities eligible for investment incentives
Business entities of any size wishing to enlarge their production capacity, to diversify their production by introducing new products, or to make a fundamental change in their production process. Both Czech-based companies and foreign companies setting up their subsidiaries in the Czech Republic can apply for investment incentives.
Nature and amount of the support
- Corporate income tax relief
- Transfer of land at preferential prices
- Job creation grants amounting to CZK 200,000 per job
- Employee training or retraining grants covering up to 45 % of the training costs (by company size)
- Exemption from real estate tax in „favoured industrial zones“
- The amount of the subsidy is set as a percentage of the size of the investment project and amounts to 45 %, 35 % and 25 % for small, medium and large enterprises, respectively
Eligibility requirements
- The investment project must be carried out in the Czech Republic (outside of the City of Prague), and must relate to the manufacturing industry
- The minimum value of the investment in tangible and intangible fixed assets must amount to CZK 100 million, of which at least CZK 50 million must be used to acquire machinery for manufacturing purposes
- At least 20 new jobs must be created and staffed
- The buildings and equipment acquired must be environmentally friendly
- At least 25 % of the investment funding must be free of any public support
- Any work on the investment must not be commenced before the submission of the investment incentive project
- All requirements must be met within 3 years from the date of the decision on the investment incentive
- The value and mix of the assets acquired must remain unchanged for at least 5 years after the requirements have been met
- The jobs must be maintained and staffed for a period of at least 5 years from the date of their creation
- The beneficiaries of the investment incentive must apply all items deductible from their tax base every year in order to reduce their tax base to the maximum extent possible
Strategic investment in manufacturing
This investment project is similar to any other manufacturing investment projects. The main difference lies in the size of the investment and in the resulting benefits for the investor.
Parameters of the strategic investment
- The minimum amount of eligible costs of the investment is CZK 500 million, of which at least CZK 250 million must be used to acquire machinery for manufacturing purposes
- At least 500 new jobs must be created
Parameters of the strategic investment
In addition to the benefits similar to those of standard investment incentives, strategic investments in manufacturing can receive financial support for the acquisition of tangible and intangible fixed assets. This support currently amounts to 10 % of the value of the assets acquired.