Investment in Czech Republic

Czech Republic, market profile

Economic outlook

After years of dynamic growth between 2004 and 2008, the Czech economy has experienced an economic downturn and a sharp decline of its GDP in 2009 of 4.7%.

Despite a GDP decline in 2012 and a limited growth in 2013, the Czech Republic is expected to experience a recovery in 2014 and 2015 with growth rate forecasts at respectively 1.6% and 2.7%.

Labour market

Czech workforce is skilled, with English being widely spoken in Prague by the young generation. Still labour remains cheaper than in Western Europe, at an equivalent level of education.

Real Estate market

The property market in Czech Republic is already well developed, and has benefited from a high level of international investment over the past years. The capital city, Prague, remains the most active market.


Prague is considered as the hub of Central Europe and benefits from an ideal location, being the link between western and Eastern Europe.
At the heart of Central Europe, the Czech capital is very well connected, and offers good transport facilities. Prague airport Ruzyne that provides daily flights to all main cities in Europe, welcomed 11.8m passengers in 2011 (over 125 destinations), and the Czech road network is well developed.

Starting business in the Czech Republic

Setting up a legal entity

Foreigners (persons but also legal entities) can set up a business in Czech Republic. The setting up process has recently been improved, and allows you to set up your Czech company in about 4 weeks.
The most common form of legal entity is the “s.r.o.”, the Czech equivalent to an LLC (limited liability company), which requires a minimum capital of 200,000 CZK (approximately 7,500 EUR).
In common practice, the company that helps you setting up your legal entity can lend you the capital, amount that will be withdrawn when the creation process is complete.

Corporate income tax

The corporate income tax level in Czech Republic is of 19%. (2013 data)

Value added tax (VAT)

The basic Czech VAT rate is of 21%. (2013 data)