Investment incentives and public support for entrepreneurship

Czechia offers a compelling environment for foreign investors, driven by a combination of strategic advantages and targeted support measures. Beyond state-provided investment incentives and financial assistance from EU funds, investors can access a wide range of additional opportunities designed to accelerate project implementation and enhance competitiveness.

Between 2021 and 2030, Czechia will receive approximately EUR 40 billion from EU funds, which can also be utilized by new foreign investors to implement their projects. The support is primarily focused on energy efficiency, digital transformation, and research and development (R&D). The Ministry of Industry and Trade manages several key programs that help businesses in these areas.

Energy Savings and Renewable Energy program finances measures aimed at reducing energy consumption, such as modernization of production technologies, building insulation, new energy-efficient equipment and renewable energy sources.

Digital Enterprise program provides financial support for upgrading logistics and warehouse technologies, cybersecurity, IT training and certification, and others.

Innovation program supports the implementation of research and development results into practice and covers costs related to introducing innovations – the purchase of new technologies.

Applications and Potential programs are essential for supporting R&D activities in the development of new products, technologies, and services.
Additional programs focus on sustainable water management, targeting projects that enable better use of polluted water and reduce water consumption in production processes, as well as Circular Economy program, which promotes the reuse of production waste, recycling, and reintegration of secondary raw materials into manufacturing.

Another possibility is through the EU's Strategic Technologies for Europe Platform (STEP), that strengthens Europe's autonomy in critical technologies such as digital and deep tech, clean technologies, biotechnology and defence systems. In Czechia, STEP is implemented through two key OPTAK programmes: STEP Application supports industrial research and experimental development, enabling companies to develop new products, technologies and prototypes with funding that may reach up to 85% depending on project type and collaboration. STEP Innovation focuses on expanding development and manufacturing capacities for strategic technologies, offering support of up to 250 million CZK and covering as much as 70% of eligible investment costs for projects that reduce the EU's strategic dependencies.

Investment incentives are a key instrument for fostering economic growth and provide support across several strategic areas. The eligibility conditions depend on the region where the investment is located and the size of the enterprise, as defined by EU standards.
The level of support generally ranges from 20 % to 60 % of the investment and can take various forms:

• income tax relief for up to 10 years,
• cash grants for acquiring fixed assets in strategic investment projects and for job creation
• material support for employee training and retraining or exemption from property tax.

The most attractive incentives are available for strategic investments in high-tech manufacturing industries or in sectors such as healthcare, semiconductor production, and technologies related to energy efficiency.

A significant form of investment support in the Czech Republic is represented by combined financial instruments, which integrate the advantages of public and private resources. In practice, this often involves a combination of grants with repayable financial instruments, such as low-interest loans or guarantees, which facilitate access to bank financing. Through these tools, investors can achieve greater financial stability, reduce capital costs, and accelerate the implementation of their projects in Czechia.
National Development Bank (NRB) plays a key role in this area by providing preferential loans, guarantees, and equity participation for projects focused on energy efficiency, renewable energy, and brownfield redevelopment. Opportunities arise from combining grants with repayable instruments, such as NRB's low-interest or interest-free loans.
Investments can also be financed through InvestEU initiative, implemented via the European Investment Bank (EIB/EIB Group), which provides loans, guarantees, and equity solutions combined with EU resources and cost-sharing with commercial banks.