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The Czech Republic is one of the fastest growing economies in Europe with the most favourable long-term macroeconomic indicators such as per-capita GDP and public debt. The country has been a regional industrial leader for more than a century and is one of the most successful CEE countries in terms of attracting foreign direct investments.
A
Working Abroad Index 3rd best country for expats Czech Republic - 12th most popular destination among people working abroad
Rank 2018
Country
1
Bahrain
2
Taiwan
3
Czechia
Rank 2017
Country
1
Singapore
4
Norway
2
Norway
5
Netherlands
3
New Zealand
6
Denmark
12
Czech Republic
7
Vietnam
27
United States
8
Germany
28
Poland
9
Luxembourg
35
United Kingdom
10
New Zealand
Source: HSBC Expat Explorer, 2018
22 | BUSINESS GUIDEBOOK
Source: InterNations, 2019
ccording to the Czech National Bank, the Czech Republic has received a total of EUR 115.6 billion worth of FDI since 1993. The largest amount of FDI flows from Germany. According to a survey carried out by the Czech-German Chamber of Commerce, 73% of German companies with operations in the Czech Republic consider the investment climate to be good. The survey shows that the Czech Republic is the most attractive location in the CEE region for many reasons, such as its proximity to Germany, EU membership, productivity and motivation of local employees, quality and availability of local suppliers and relatively low labour costs and skilled workforce. The Global Competitiveness Index ranks the Czech Republic 29th out of 140 countries worldwide and first in the CEE region. Strategic location One of the factors that make the Czech Republic extremely attractive for foreign investors is its good access to the European market. The country’s convenient location in the middle of Europe makes it possible to reach all European capitals very quickly. Together with EU membership, this makes the country a perfect gateway to the single European market of 508 million consumers. Given the fact that the Czech Republic is at the crossroads of European trade, advanced transport infrastructure was naturally developed here. The Czech Republic is ranked among the world’s most advanced countries in terms of transport-network density and several projects involv-
ing modernisation and extension of the network are currently underway. Stable and transparent business environment A stable political situation, well-developed private sector, effective legal environment and healthy banking system with a strong and independent central bank are the key features of a society in which business can be conducted effectively and safely. The Czech Republic’s open investment climate was a key element in the country’s transition, which is reflected in its investment rating from international credit-rating agencies, putting it on an equal footing with Japan and Taiwan and opening the door to early membership in the OECD. The Czech Republic is a fully-fledged parliamentary democracy and one of the most advanced new members of the European Union, which it joined in 2004. Its currency, the koruna (CZK), is fully convertible and extremely stable. Under Czech law, foreign and domestic entities are treated identically in all areas, from protection of property rights to investment incentives. The tax system offers the lowest rates in Europe (the corporate and personal income-tax rates are 19% and 15%, respectively) and has remained stable over the long term; the last change of the corporate income-tax rate was a reduction in 2010. Educated and a skilled workforce The Czech Republic combines an outstanding level of general education with strong science and engineering disciplines. The availability of graduates educated in technical fields at