Czech Republic

Presentation of country

  • Country located in the heart of Central Europe with 11 million inhabitants and 2 milllions in the capital Prague
  • Very dynamic economy with lowest rate of unemployment of developed countries, 2%, and an income per capita which increases at very quick pace
  • A strong presence in industrial activities, such as automobile manufacturing, transport in general and electronics
  • Average salary of 900€ / month, which explains the competitivity of the industry, boosted by a voluntary low exchange rate of the Czech Crown
  • Second country in the OECD list, in the world with lowest proportion of people living under « poverty level »

Potential

  • Czech Republic is certainly the country which has the highest probability to reach the same standard living of « western european » countries without the issues of these countries (religious, tax, domestic, safety…)
  • Presence of some best universities in the world
  • GDP growth has been 5% in 2018, which is at the top list of European Union
  • Budget deficit is equal to zero, even with lowest level of tax in Europe. The debt represents 35% of the GDP (vs. 100% in France for example)

Real estate market

  • Real estate market price has increased by 40% the last three years
  • Low level of new apartments built every year, because of absence of available land and restrictions in zoning policy
  • Pressure on price due to large increase in salaries, living standards, and increase of population (students, expatriates or professionals from other provinces)
  • Possibility to have bank financing up to 50% for non resident investors
  • Extremely low real estate tax
  • Very large potential of increase of rent and of acquisition price
  • Price per sqm in Prague is still very low compared to Munich or Vienna, which are today comparable nearby cities

Tax & Social

  • Corporate tax : 19%
  • Personal income tax for residents : 15%
  • Tax rate on rents for non residents investors : 15%
  • Tax on dividends distributed : 15%
  • Transfer tax of real estate : 4% of acquisition price
  • VAT : 21%
  • Currency : Czech Crown

Investissements