Foreign investment becomes easier thanks to new type of residence permit

On 15 August, 2017, new rules of economic immigration have come into effect.

Until recently, foreign investors were allowed to apply for a residence permit on the basis of performing business activities in the Czech Republic. A new term, however, “a long term stay for the purpose of making investments“ has been introduced in order to provide the long-term-stay applicants a more advantageous status not only during the immigration procedures but also during the following stay in the Czech Republic. The applicant may apply directly for this permit without having to be a long-term visa holder. A “regular” foreigner (business person) needs to obtain a long-term visa to become enabled to apply for the long-term residence permit. The new type of permit is to be granted for the period of two years (as opposed to the long-term visa with a one-year validity period) and ought to be decided upon within 30 days (compared to the standard 90 days).

Nevertheless, the applicant will have to prove that they are planning on making a so-called significant investment in the amount of a minimum of CZK 75 million which will result in a creation of at least 20 job positions. The Ministry of Industry and Trade will, then, decide whether the investment plan is an executable one and also profitable for the state, county or municipality.