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Changes in investment incentives

Investors will most likely have to deal with a new system of investment incentives from spring 2019, as significant amendments to legislation regulating investment incentives are under way.

According to a proposal currently undergoing internal comment procedure, the new rules should respond to economic developments and give support mainly to projects with higher added value. In practice, this means that many corporations that would be granted investment incentives under the current criteria will not be able to apply for them in the future. On the other hand, the biggest obstacle to high-tech projects in manufacturing receiving support, i.e. the condition of having to create and maintain at least twenty new jobs, should disappear. 


The specific criteria and parameters of granting investment incentives will surely be discussed during the approval process. Part of the parameters will be regulated by a government decree rather than a law. The government will thus be able to flexibly respond to the state of the Czech economy and potentially adjust parameters as appropriate.