Czech Republic

Czech Republic
Poland
Slovakia
Hungary
Germany
France
Basic Information

10.6 million (1.3 million in Prague)

Area

Population

Workforce

Language

Political System

Currency

Membership

5.4 million

Czech

Parliamentary democracy

Czech Crown (CZK)

EU, NATO, OECD, OSCE, Schengen agreement, V4, UN, Council of Europe…

Prague

Capital

78,867 sqkm

Czech Republic
Poland
Slovakia
Germany
France
Hungary
Germany
Spain
United Kingdom
Ireland
Romania
Luxembourg
Netherlands
Slovenia
Italy
Bulgaria
Austria
Croatia
Belgium
Portugal
Malta
Estonia
Latvia
Lithuania
Greece
Sweden
Denmark
Finland
Cyprus
Malta
Estonia
Latvia
Lithuania
Greece
Sweden
Denmark
Finland
Cyprus

The Czech Republic is a landlocked country in Central Europe, bordered by Poland, Germany, Austria and Slovakia. It includes the historical territories of Bohemia, Moravia and a part of Silesia.

The Czech Republic became an independent state in 1993 after the peaceful dissolution of Czechoslovakia, sometimes known as the Velvet Revolution. The state system is a multi-party parliamentary representative democracy, with the Prime Minister as the head of government. The Parliament is bicameral, with the Chamber of Deputies (200 members) and the Senate (81 members). Political matters are handled by the President.

The Czech Republic has a long history of industries since the Austrian-Hungarian period. Due to this technical and natural science expertise it has attracted FDIs mainly from Germany, Japan, the US, Korea, China and other European countries. Currently, it is the most industrialized country in EU -with 35% share of GDP (62.3% services, 2.7% agriculture). The largest industry is automotive, followed by machinery, electronics, ICT and aerospace. The country was the largest recipient of FDI inflows in Central Europe, ahead of Poland.
Major Industries

Aerospace

Automotive

Machinery
& Transportation

Electronics

Chemicals

ICT

Pharmaceuticals

Major Trade Partners

Export

Germany, China, Poland, Slovakia, Italy, France, Russia, Austria, Netherlands, South Korea

Import

Germany, Slovakia, Poland, France, UK, Austria, Italy. Netherlands, Hungary, Spain

Reasons to Invest

  • Located in the center of Europe (great access to Western/Eastern Europe)    
  • Well-established infrastructures
  • Safe investment environment (stable politics/economy)
  • Long history of industries and natural science (pool of skilled labor force)
  • Well-structured supply chain
  • High labor productivity with lower labor cost
  • Various types of financial aid (investment incentives, EU funds)
  • Reasonable living cost and world’s top-level safety

34.6 %

1,481 USD

General government debt (GDP, 2017)

Long-term interest rates
(10Y government bonds)

Average inflation rate (2018)

Labour productivity (index, 2018)

Unemployment rate (avg. 2018)

Average nominal gross wage (12/2018)

1.83 %

1,312 EUR

22.42

25.83

AA-

2.15 %

116.70

2.2 %

4.70 %

GDP growth (constant prices, 2017)

4.3 %

33,840 CZK

Average nominal monthly gross wage
(2018)

Average nominal monthly gross wage
(2018)

Average nominal monthly gross wage
(2018)

Exchange rate - CZK/USD (31/12/2018)

Exchange rate - CZK/EUR (31/12/2018)

Credit rating (S&P, 2017)

Economic Indicators

40 hours / week

15%

Maximum Working Hours

Maximum Overtime Hours

Compensation for Overtime / Holiday Work

Minimum Number of Paid Holidays

Sick Days

Maternity Leave

Consumption Tax

Parental Leave

Social Security (Companies)

Notice Period

Social Security (Employees)

Probation Period

Labour Union
(Proportion of Employee/Collective Bargaining Coverage)

8 hours / week,
150 hours / year

21%

Real Estate Acquisition Tax

Road Tax

At least 25% plus

4 weeks

Until 3 years old

34%

At least 2 weeks

11%

3 months or 6 months

17 % / 38 %

Sickness insurance without first 3 days

Inheritance and Gift Tax

28 weeks, 37 weeks

Minimum Wage (2019)

13,350 CZK / month

19%

Corporate Tax

Income Tax

Value Added Tax (VAT)

OtherTax:

Real Estate Tax

Energy Tax

Taxation System
Labour Regulations
Source: World Atlas, Trading Economics, Eurostat, World Bank, Inflation EU, Exchange Rate ORG