Momentarily, the Czech Republic
is positioned in the first place among the Central and Eastern European countries in terms of foreign
(FDI) – investments in businesses
made by entrepreneurs from foreign countries for which they have control – as well as FDI capital inflow – increase in the amount of capital available from foreign sources for the acquisition of capital assets – according to the Investment and Business Development Centre of the local government, CzechInvest. The reason for this lay behind the foreign investment
incentives introduced by the government in
the Czech Republic
, efficient infrastructure and richness in natural resources.
Strategy for foreign investments in Czech Republic
Since 1990, the Czech Republic took an important role in the Central and Eastern European region in terms of foreign direct investments. In 2014, the FDI inflow data registered a yearly increase of 60%, recovering fully after the economic crisis, the increase being due mainly to the automotive industry. CzechInvest issued a new strategy which intended to make the Czech Republic one of the most attractive markets for foreign entrepreneurs. This strategy is based on five principles:
• Increased activity outside the country;
• Improved service for entrepreneurs;
• Enhanced support coordination for small and medium-sized businesses;
• Highlighting of the use of research and development;
• General enhancement of the communication among agencies connected to FDI and state authorities.
Main investment industries and countries in the Czech Republic
According to the Czech National Bank statistics issued in 2016, the main industries which registered foreign direct investments in the Czech Republic in 2012 were:
• the manufacturing industry – 33% of the total foreign investments;
• financial intermediation – 21.8% of the entire foreign investments in the Czech Republic;
• property, renting – 14.7%;
• trade and maintenance – 6.7%;
, storage and communications – 6.5%.
As about the main countries investing in the Czech Republic, these are:
• Netherlands, with 43.9% of the FDI inflow;
• Germany, with 15.7%;
• Austria, with 13.2%;
• Belgium, with 7.8%;
• USA, with 5%.
Our law firm in the Czech Republic
can provide detailed information on the legislation regarding foreign investments
in this country. Please contact us
if you need to know what this legislation consists of.