“In 39 cases this involved expansions of existing firms; otherwise, these are investors who are investing in the Czech Republic for the first time or who established an additional, completely new business here. This trend indicates that we have succeeded in attracting investments with long-term potential. Investors are coming to the Czech Republic and developing their business here, and not only in manufacturing, but also in research and development,” adds Petr Očko, acting CEO of CzechInvest and head of the EU Funds, Research and Development Section at the Ministry of Industry and Trade.
The largest number of investment projects submitted in 2012 were in the automotive industry (19), plastics and rubber sector (7) and mechanical engineering and the metalworking industry (6). These generally involve manufacturing projects, whereas two investors are planning to construct technology centres in the Czech Republic and two projects involve shared-services centres. In the event of approval, the largest number of investment projects will be located in the Ústí (9), Moravia-Silesia (7), Central Bohemia (7) and Olomouc (5) regions.
CzechInvest is currently in talks with an additional five investors that are considering submitting investment projects during the first two months of 2013.
Both existing and newly incoming investors in the manufacturing industry, business support services and technology centres can receive tax relief for a period of ten years instead of five years. The possibility to draw tangible aid for job creation, training and retraining, and the investment incentive in the form of transfer of land and related infrastructure for a favourable price remain unchanged.
A completely new aspect consists in the introduction of the institution of strategic investment events. This means that, besides standard investment incentives, designated projects can receive tangible aid for capital investment in the amount of 5% of costs. This support pertains to the manufacturing industry and technology centres. The Government of the Czech Republic issues decisions on support for individual projects that fulfil the relevant conditions.
Investment incentives in the Czech Republic are mediated exclusively by CzechInvest.
More information is available at http://www.czechinvest.org/en/investment-incentives-new.
