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Amendment to the Act on Foreign Nationals’ Residence in the Czech Republic introduces new types of permits

The Act on Foreign Nationals’ Residence in the Czech Republic regulates the conditions under which foreigners may enter our territory and sets the rules for issuing residency permits and visas. Its amendment, which is now being discussed in parliament, widens the range of residency permits, introducing a special type of permit for foreign investors and seasonal workers. It also sets special rules for foreign employees posted in EU member states within multinational business groups. The new types of permits were not the Czech legislators’ idea, but instead a response to EU directives.

The long-term residency permit for investment purposes will make stays easier for foreign nationals who intend to make a ‘significant investment’ in the Czech Republic; this means an investment of at least CZK 75 million and the creation of at least 20 jobs. To attract investors, various exceptions from the duty to produce some otherwise obligatory documents will be allowed; in return, applicants will have to submit a credible and feasible business plan. The permit will then be issued for the time it takes to make the investment, but not for more than two years.

The permit application process will be easier for seasonal workers as well. While the Employment Act already provides for foreigners coming to the Czech Republic to carry out seasonal work by regulating their work permits, the regulation concerning special residency permits for this type of stay has so far been missing. This gap is now being filled by a seasonal worker visa that may be granted for up to six months of one year. Applications of workers coming to the Czech Republic repeatedly to carry out seasonal work will be attended to on a priority basis. The areas where seasonal workers may work have also been defined: agriculture, gardening and tourism.

Foreign employees of companies with registered addresses outside the EU who are posted by their employer to work in EU-based companies of the same group or branches, may newly apply for an intra-company transferee card, which doubles as a work and residency permit. Business groups present in a number of EU countries will appreciate simplified conditions for the mobility of posted employees across the EU. A holder of an intra-company transferee card issued by another EU member state may work in other member states without limitations for up to 90 days. Should the work in another EU state take longer, workers may apply for a special permit that, in effect, will recognise the validity of the foreign card.

The amendment was passed by the chamber of deputies in April and is now to be discussed in the senate. Its effective date is rather rushed – planned for the fifteenth day of its promulgation, as the deadlines for transposing the relevant directives already expired last year.