We have recently informed you about a possible change in the government decree on the conditions for obtaining investment incentives in case of strategic investments.

 A draft decree of the government, which will stipulate to admissible level of public support in coherence regions of the Czech Republic, is currently subject to the comment proceeding. The document has been compiled following a decision of the European Commission from 29 July 2021, which approves the new map of regional support of the Czech Republic for the period of 2022 to 2027. The “new” maximum intensity of support is summarised in the following table.

Table no. 1: Levels of regional support applicable to the Czech Republic from 1 January 2022

Source: Decision of the European Commission and draft decree of the government

According to the new map of regional support, the supported areas (i.e. the areas, where GDP per citizen is lower or equals 75 % of the EU average) will include NUTS II regions Northeast, Central Moravia and Moravia-Silesia with the basic level of public support of 30 % and NUTS II region Northwest with the basic level of public support of 40 %.

The areas of NUTS II Central Bohemia, Southwest and Southeast will only be eligible for limited support already (i.e. they have GDP per citizen higher than 75 % of the EU average, while at the same time they are so-called former “supported” areas). This means that in case of large companies, here, it will not be possible to support investments in expansion of current activity, but only investments in new economic activity. At the same time, the basic level of public support is being lowered. It has newly been set at 15 % to 25 %.

In NUTS II region Prague, the level of support continues to be 0 %, and in all regions for investments with eligible costs up to EUR 50m, an increase reaching 20 percentage points is being added for small companies, and 10 percentage points for medium-size companies.

According to preliminary stipulations of the “new” government decree, it is possible to obtain more than the current 25% support only in case of submitting an intention for obtaining an investment incentive from 1 January 2022.

We will keep you informed about further progress of the approval process. If you are considering new projects in selected regions with “newly” a higher possible level of regional support, it is suitable not to submit an application until 2022.

In case of any questions, please, do not hesitate to turn to us. We are prepared to assist you in the field of investment incentives.