The Czech Republic is located in Eastern Europe and is bordered by Poland, Germany, Austria and Slovakia. Until 1993 the Czech Republic was unified with Slovakia however since separation the country has undergone major political, social and financial reforms. The Czech Republic is a democracy and a member of the EU, NATO, the OECD and the Council of Europe. The capital city is Prague.
The Czech Republic has made significant progress with regards to liberalization of the business environment; 85% of the country’s GDP is derived from private businesses and corporate taxation has been cut from 26% to the current rate of 20% resulting in a significant increase in foreign investment. The Czech Republic has also introduced a range of financial incentives to stimulate foreign investment including ten years corporate tax relief for new manufacturing investment, payment of 50% of costs for new technology and business investment and numerous substantial job creation and training grants.
In 2009 this period of stable and robust economic expansion halted as a result of the global downturn however the Czech Republic has weathered the turmoil relatively well with a GDP Growth of 1.7% in 2011.
Key benefits of the Czech Republic:
- Stable political environment with EU and NATO membership
- The Heritage Foundation ranked the Czech Republic 15th out of 43 countries in the region of Europe with regards to economic freedom. The Czech Republic ranks higher than the regional and global average.
- The Czech Republic is one of Europe’s most industrialized nations with a highly skilled workforce.
- Liberal, western business culture with English widely spoken
- Developed and stable banking system with most a number of international banks located in the Czech Republic
- Low corporate tax rate of 20%
There are numerous international banks operating in the Czech Republic however setting up a corporate bank account can be challenging. Eltoma can assist you in bank account opening using our local contacts and knowledge.
For additional information on company incorporation and bank account opening in the Czech Republic please contact us.
CJEU: Defines Key Definitions for Tax & Beneficial Ownership Purposes
Last month, the Court of Justice of the European Union (CJEU) issued a series of important judgments dealing with tax avoidance and beneficial ownership in the context of the EU Parent-Subsidiary Directive (PSD) and the Interest and Royalties Directive (IRD).