Serious investors will find it easier to obtain a residence permit in the Czech Republic
"I am convinced that this measure will have a beneficial effect on the Czech Republic, as it is in line with the government's policy of increasing employment," emphasized Foreign Minister Lubomír Zaorálek.
As reported by Radio Prague, the government decree stipulates that an investor who undertakes to create new jobs can apply for a long-term residence permit. This will subsequently benefit the state budget, as the employer will make contributions from employees' salaries for social and health insurance.
"The Czech Republic needs new foreign investment, it is necessary for foreign entrepreneurs to work here, help us modernize the economy, and create new jobs. If this project is implemented properly, it could significantly contribute to this," emphasized Radek Špicar, Vice President of the Confederation of Industry and Transport.
Nevertheless, the long-term residence permit will not be issued automatically. To obtain it, the investor must submit a project of their business intentions, which must be feasible and credible. It is also necessary to demonstrate that the entrepreneur is familiar with local business conditions and the market situation. The application is then submitted for joint review to the Ministry of Industry and Trade and the state agency CzechInvest. The final decision on the request will be made by the Ministry of the Interior. Thus, the application processing time, which currently stands at three months, could be reduced to 30 days.
Another condition for issuing a long-term residence permit is that the proposed investment must be significant and long-term. It will also be considered whether the foreigner is a partner in a company, a member of a statutory body, or an authorized agent in that trading firm. If the person applies as a partner in a company, they must own at least a 30% share in that firm.
The Economic Chamber of the Czech Republic criticized the adopted decree. In its opinion, the established conditions for applying for a long-term residence permit are too strict.
"We proposed that the investment amount be reduced to 15 million crowns (566 thousand euros), and instead of 20, it would be necessary to provide 10 new jobs. For example, in neighboring Germany, the stay of a foreign entrepreneur is linked to an amount of 1 million euros, that is, 26-27 million crowns," explains Ladislav Minčič from the Economic Chamber of the Czech Republic.
He also added that entities that come to the Czech Republic for business purposes and have a clear vision, provide new jobs, and show a willingness to invest should be motivated by more favorable conditions.
The ministry's projects are based on an amendment to the Foreigners Act, which has already been approved by parliament and is currently under consideration in the Senate. It stipulates that the conditions for issuing and extending a long-term residence permit for investment purposes are set by a government decree.
Last Monday, the cabinet also approved a decree regulating the conditions for the work of foreigners from third countries in the Czech Republic. From now on, it is clearly established that foreigners are not entitled to work in the Czech Republic on the basis of a short-term visa. According to Foreign Minister Lubomír Zaorálek, such a practice existed until now, but it was not clearly formulated in legal form.
"If someone wants to engage in income-generating activity, they cannot use a short-term visa of up to 90 days for this," the minister stated. "So if a person wants to work, they need a long-term work visa. In practice, this was the case, but there was no corresponding legal form. That is what we have now adopted."
Visa programs for investors exist in a number of countries. For example, in Hungary, it applies to investors (both individuals and companies) that have existed for at least five years. The requirement for obtaining a visa is an investment of at least 250 thousand euros. In Germany, it is assumed that an investment of one million euros will be made and at least 10 new jobs will be created. Similar programs also exist in the United Kingdom, the Netherlands, Ireland, France, and a number of other countries.