Business and Investment Development Agency


Investors remain interested in incentives despite reduction of support

Last year’s amendment to the Investment Incentives Act is having the desired effect.

Investors remain interested in incentives despite reduction of support

Despite the reduced state-aid intensity, which fell from the original 40% of eligible costs to 25%, there is still strong interest in investment incentives in the Czech Republic. In 2015 CzechInvest received 67 applications for incentives. Out of the total value of CZK 33 billion, the absolute majority of incentives are intended for business expansions. Companies intend to invest mainly in production and to create more than six thousand jobs.















The latest amendment to the Investment Incentives Act came into force on 1 May 2015. The purpose of this amendment is to compensate investors for the reduced percentage amount of support. It also eliminated certain restrictions from the investment incentives system and introduced new stimulus for investors while expanding the districts with tangible aid for job creation and training and retaining. Furthermore, the amendment introduced support for special industrial zones and aid for investors in the area of data centres and customer-support centres. Investors’ interest indicates that the amendment is serving its intended purpose.

The largest number of applications received in 2015 involved projects in the Central Bohemia region, while the South Bohemia, Ústí and Pardubice regions were also strongly represented.  As in previous years, companies focused on vehicle manufacturing, metal-working and -processing and the rubber and plastics industry are planning the biggest investments.

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