Investment Incentive — Manufacturing Industry

Investment Incentive — Manufacturing Industry

Provides corporate tax relief, job subsidies, and training grants for manufacturers expanding in the Czech Republic.

The Czech Investment Incentive for Manufacturing Industry is a state incentive package administered under Act No. 72/2000 Coll. (as amended by Act No. 426/2023 Coll.) for companies making new or expanded manufacturing investments in the Czech Republic. CzechInvest, the national investment and business development agency, receives applications and coordinates inter-ministerial review, but the formal incentive is granted by the Ministry of Industry and Trade following a Government decision — not disbursed by CzechInvest directly.

Support is delivered as a combination of up to ten years of corporate income tax relief, job creation grants of CZK 200,000–300,000 per new position (with the higher rate in districts where unemployment exceeds the 7.5% threshold), and training subsidies covering 50–70% of eligible training costs. Strategic investors committing at least CZK 2 billion and creating a minimum of 250 new jobs may additionally receive a direct cash grant of up to 20% of eligible costs. Minimum investment thresholds range from CZK 20 million (small enterprise, standard region) to CZK 80 million (large enterprise, standard region), with thresholds halved in designated special state-support regions. State-aid intensity limits vary by enterprise size: small enterprises are eligible for up to 40–60% of eligible costs, medium 30–50%, and large 20–40%.

Eligibility is open to both foreign and domestic for-profit manufacturing companies operating in the Czech Republic; nonprofits and universities are excluded. Applications are submitted to CzechInvest, which assigns an investment advisor to guide the process through MPO. Contact for the programme is the CzechInvest Investment Financing Department.