Investing in Czech Republic
Why should you invest in Czech Republic?
Czech Republic could easily be the heart of Europe. Bordered by Germany, Austria, Slovakia and Poland, it is one of the most centric countries in the continent. Bohemia, like it was called until the early 20th century, is also one of the few places in the world where you can find great beauty in a really small area. With an exciting history, stunning cities and traditions, Czech Republic is a land of wonders; and besides all that, it is also a great country to invest. So, if you’re thinking about expanding your businesses, pay attention to this growing nation!
The Czech Republic possesses a developed high-income economy. Many countries from all over the world invest here; Germany, the United States, Austria and Japan are some of the most significant investors. In fact, in Czech Republic, over 173.000 firms across all sectors are supported by foreign capital. The most important industries are the automotive, high-tech engineering, electrical engineering and the aerospace industry. However, there’s plenty of space for other businesses. Tourism, for instance, is a sector in expansion since the Czech Republic is becoming an increasingly attractive holiday destination. There are also plenty of opportunities in the telecommunication sector, since it is slowly being privatized.Why should you invest in Czech Republic?
- Czech Republic’s strategic location in the center of Europe guarantees a privileged accessibility to both established western and emerging eastern markets. - It is at the top of the CEE countries in the competitiveness of the world economies. - It is a member of the Multilateral Investment Guarantee Agency (MIGA), an international organization for protection of investments. Besides, the country has also concluded agreements for the avoidance of double taxation.
- It has plenty skilled workforce and relatively low costs . The average monthly salary in 2005 was CZK 17,678 (approximately 580€ per month) and it continues to grow. - An estimated 90 per cent of the working population has completed secondary education. Besides, an OECD survey shows the country ranks second in Europe for its number of technical graduates.
- It has an extensive transport and rail infrastructure. - Czech Republic has a stable political environment. Besides, out of all the countries in Eastern Europe, the Czech Republic has proved to be the most stable in terms of economic developments.
- Czech Republic is part of the European Union since 2004. Also, it is also part of the Schengen since 2004, having abolished border controls with all of its neighbors. It is also a member of the World Trade Organization since 1995. - Czech Republic’s CzechInvest (a state agency that helps new investors) offers its services free of charge. Its wide range of facilities will guide you through the country’s business climate.
- Czech Republic is tremendously business-friendly; it offers many investment incentives such as discounts on income tax, financial support for the creation of new jobs, etc - The country has a robust banking sector; the Czech Republic’s biggest banks today are foreign-owned. The country is relatively free from corruption.
Slovakia, a place to grow!
Located in central Europe, Slovakia is a land of rocky mountains, with vast
forests and beautiful pastures. Its capital, Bratislava, is the only national
capital that borders two countries (Austria and Hungary) and is also the
wealthiest region of the country. Slovakia and its growing capital have a lot of
attractions (from cultural to economic!) which can be translated into new
opportunities for investors worldwide.
Investing in any new location is always a challenge, but we want to remind you why Slovakia can be (and will be!) a great option!
Since the establishment of the Slovak Republic in January 1993, Slovakia has experienced a transition from a centrally planned economy to a free market economy. Besides, by joining the EU in 2004 and adopting the euro in January 2009, many things changed regarding the economic and social policies of the country.
In 2007, Slovakia reached the highest economic growth among the members of OECD and the European Union.
Therefore, the foreign direct investment in Slovakia has increased dramatically over the last years. The government has also facilitated the foreign investment boom with business friendly policies. For instance, The Slovak Republic made starting a business easier by speeding up the processing of applications at a one-stop shop for trade licenses, income tax registration and health insurance registration.
Slovakia's aspires to become the ideal premium FDI destination in Europe for international companies by 2020. Better start preparing!
And what's so great about Slovakia?
- Due to Slovakia's central location, you can easily travel to many European capitals (such as Vienna, Budapest or Prague). In fact, from Slovakia you can reach the majority of the EU within a radius of 2,000 km!
- Slovakia offers political and economic stability. The country enjoys a democratic system and its Eurozone membership promotes the development of a more robust institutional policy framework.
- In Slovakia you will find low labor costs and high labor productivity. The minimum wage in Slovakia is set at 352 Euro per month, and the average salary for 2014 is 861 Euro per month.
- The country has an excellent telecommunication infrastructure. The transportation is also great; it has direct international air services with many capitals and Trans-European water transportation via the Danube.
- English is the most common foreign language spoken, followed by German due to Slovakia's proximity to Austria and Germany. It is estimated that 85.76% of the populations speaks fluent English!
- Slovakia is part of the Eurozone, which reduces currency exchange risks and tightens the ﬁscal discipline of member countries; this way, there are more opportunities for a stable economy.
- Slovakia has a solid banking sector, which has a high average capital adequacy ratio (17% in 2013) and a strong domestic funding base, which supports a manageable loan-to-deposit ratio of 82%.
- The Slovak economy is dominated by the automotive sector (it received large investments of Volkswagen, Peugeot and Kia Motors), but it also stands out for electronics, mechanical engineering and mechanical engineering.
- Slovakia is a member of the United Nations. Besides, it is also part of the Organization for Security and Cooperation in Europe (OSCE), the World Trade Organization (WTO), and the OECD. The country is also a member of the Visegrad Four (which includes Slovakia, Hungary, Czech Republic, and Poland).
Our main goal is to meet the needs and expectations of your business / company and help you to achieve your goals.
Keeping in mind today's constantly changing economy, we believe that our skills of research, analysis and strategy development will help expanding your company.
We have a realistic and ambitious way of perceiving the business world; we know that, in order to survive and grow, loyalty and professionalism are essential. And this is something that we are committed to offer. We partner with clients from the private, public and non-profit sectors of all regions.
If you share our perspective and believe in the mentioned ingredient to build successful relationships, than we will be delighted to work with you!