This economy profile presents the Doing Business indicators for the Czech Republic. To allow useful comparison, it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June
1, 2014 (except for the paying taxes indicators, which cover the period January–December 2013).

Czech Republic – Economic forecast summary The economic expansion has gained momentum, driven by domestic demand. Renewed consumer confidence and income growth are supporting consumer spending, while public spending and an improving outlook are raising investment. Stronger growth in trading partners will drive further growth in exports.

The Commission has made four country-specific recommendations to the Czech Republic to help it improve its economic performance. These are in the areas of: public finances and health; taxation; taxation on labour; education.

This section contains general as well as specific information about the Czech economy and its market. To get an overview of the recent Czech economic performance, to compare historical data and future perspectives, it is recommended to begin with official data from the Czech Statistical Office in the section General Economic Data which contain the key data about the Czech economy, the labour market, environment and agriculture, people and society and international comparisons.

This section sums up important information about starting a business in the Czech Republic. It also offers division of enterprises by law and brings useful help in setting up a new business or taking over a business.

Foreign legal entities are allowed to conduct trade activities, including acquisition of real estate, under the same conditions and to the same extent as Czech entrepreneurs. 

The Personal Income Tax Rate in Czech Republic stands at 22 percent. Personal Income Tax Rate in Czech Republic averaged 28.90 percent from 1995 until 2014, reaching an all time high of 43 percent in 1995 and a record low of 15 percent in 2008. Personal Income Tax Rate in Czech Republic is reported by the Financial Administration of the Czech Republic.

The system of taxation of the Czech Republic resembles the systems of taxation of other European countries. Generally, taxes can be divided into direct taxes, related to the level of income of the subject, and indirect taxes, related to consumption, or the purchase of goods and services.

The Sales Tax Rate (VAT) in Czech Republic stands at 21 percent. Sales Tax Rate in Czech Republic averaged 20.31 percent from 2000 until 2015, reaching an all time high of 22 percent in 2001 and a record low of 19 percent in 2004. Sales Tax Rate in Czech Republic is reported by the Financial Administration of the Czech Republic.

Value Added Tax makes up one of the most important sources of income of the state budget. Everyone pays it during purchase of most goods and services.

Visa information for tourists, students and business

Visas are not required by nationals of EU countries for stays of up to 90 days; you are advised to notify police officials if you wish to stay longer. Nationals of Australia, Canada and the USA can visit the Czech Republic visa-free for stays of up to 90 days.

All travelers will need a passport valid for at least 90 days following your departure date from Czech Republic.

A work permit and a valid visa for the purpose of employment are required for foreigners who want to work in the Czech Republic. Note that foreigners need their work permit before they can apply for the valid visa.

General information on the procedure of employing foreigners. The conditions for employing foreigners in the Czech Republic are laid down in the Law on employment according to which foreigners or persons without citizenship may be employed in the territory of the Czech Republic provided that they were granted an employment permit and residence permit.

The Czech Republic has a small but sophisticated telecom market, with a number of alternative operators offering fixed-line services. Competition is growing in all sectors, with alternative operators gaining size and strength through organic growth, and merger and acquisition activity. – See more at: http://www.budde.com.au/Research/Czech-Republic-Telecom-Market-Statistics-Infrastructure-Operators-Regulations-and-Analyses.html#sthash.Ony0BVuA.dpuf

The Czech Republic is one of the main transit points in Europe.

The Czech Republic has one of the most advanced transport networks in Central and Eastern Europe. Its geographical position makes it a natural crossroads for major transit corridors. 

Overview of Czech Republic’s infrastructure.

Labour law has a long history as part of private law. Private law on the territory of the present Czech Republic was codified in the 19th century. The General Civil Code (AGBG) from year 1811 regulated two types of contracts: the “service contract” and the “on work contract”.

The relations between employees and employers in the Czech Republic are governed by the labour law consisting of a number of acts, decrees and regulations of the government.

Czech legislation provides for various rights and duties for both employers and employees. This aim of this article is not to provide an exhaustive list of those rights and duties, but rather to acquaint readers with the essentials. PDF

When working in the Czech Republic, you will automatically pay contributions to the Czech social security system. Make sure you’re familiar with what this system covers, so you can decide whether you need to take out any additional insurance policies.

The Czech Social Security Administration is the largest financial organization of the Czech public administration with annual income and expenses of almost CZK 750 billion.

The Czech Republic is a parliamentary democracy in Central Europe. The nation became a full member of the European Union in 2004 and a member of the Schengen Zone in 2007. 

Business etiquette focuses on the behaviour deemed appropriate in a professional setting and you’ll be more likely to make an excellent impression on people you encounter if you maintain a professional approach.

The climate of the Czech Republic can be described as typical European continental influenced climate with warm, dry summers and fairly cold winters. January is the coldest month with daytime temperatures usually around zero, but in some cases winter months can be very cold with temperatures far below zero and strong, cold winds. 

The Czech Republic is a landlocked country located in moderate geographical latitudes in the Northern Hemisphere. The climate of the Czech Republic is mild but variable locally and throughout the year.

Cost of living information includes price indices for rent, food, utilities, transportation, restaurants, clothing and more

The Czech Republic performs well in many measures of well-being in the Better Life Index. The Czech Republic ranks above the average in personal security, education and skills, work-life balance and environmental quality, but below average in jobs and earnings, housing, health status, income and wealth, social connections, and civic engagement.

The dos and don’ts of business etiquette

Schedule of National and Christian

Public Holidays in Czech Republic

Demographic information includes population, quality of life, health, sports, technology, energy and the environment

The Czech Republic Demography Data

US Department of State – Go to Safety and Security for updates from the Czech Republic government

Primary and secondary schools in the Czech Republic

According to the Bill of Rights and Freedoms every person has the right to education. The Education Act No.561/2004 newly includes provisions regulating the education of aliens. An obligation to prove lawfulness of one’s stay in the territory of the CR is a major novelty of the act. General conditions of schooling and education in the CR are outlined in the following text.

Top exports and imports and top destination countries and countries of origin

The Czech Republic, as an EU Member State, is part of a common customs territory, and customs clearance procedures adhere to the following principles valid for all EU Member States:

The Customs Administration of the Czech Republic is a security force and its activities form a part of the customs supervision system in the framework of the single customs territory of the European Union. It implements this supervision on the basis of the uniform customs regulations of the European Union.

key information on the Czech Republic’s participation in the WTO. The Czech Republic has been a WTO member since 1 January 1995 and  a member of GATT since 15 April 1993. As of 1 May 2004 it is a member State of the European Union (more info). All EU member States are WTO members, as is the EU (until 30 November 2009 known officially in the WTO as the European Communities for legal reasons) in its own right.

Housing and rental options in the Czech Republic

In the Czech Republic, the housing situation is very complicated and in the case that you are looking for cheap rented accommodation, your task will not be an easy one.

Official travel site of the Czech Republic provides news and information including special interest holidays, events and map.

The Czech Republic is culturally and historically more closely linked to Western, particularly Germanic, culture than any of its former Eastern-bloc brethren. The most popular tourist destination in the region, Prague was discovered shortly after the fall of the Iron Curtain.