Czech golden visa scheme launched in Aug 2017

The Golden visa scheme in the Czech Republic came into force in August 2017, offering long term residence permit for third country nationals for Significant investment. Foreign Investors get a long term residence in EU member state and free movement in the schengen area

Sections 42n and 42p of Act No 222/2017 set out the qualifications and general requirements for the applicant for the residence permit under the act. The applicant must be a natural person – entrepreneur who intends to stay in the Czech Republic for a period exceeding 90 days and intends to make in the Czech territory a significant investment, which is defined in Section 1 (a) and (b) of Government Regulation No 223/2017.

Golden visa conditions

The significant investment conditions are

• At least CZK 750 000 000 (EUR 3 000 000) are made and at the same time the investment
• Create at least 20 jobs in the Czech Republic.

However, such financial amount of the investment may be replaced, up to a maximum of 60 %, by investment in another property (material and immaterial property including technological and informational knowledge, buildings, pieces of land, machines, etc.) on condition that the benefit of property is for the applicant corresponding to the financial amount that it replaces.

The purchase of immovable property, which must not exceed CZK 451 200 000 (EUR 1 800 000).

MoI requests an opinion from the Ministry of Industry and Trade (MIT). The business plan must be credible and feasible and the significant investment must be beneficial for the Czech Republic as a whole, or for one of its regions or districts. This is evaluated by the Ministry of Interior on the basis of the opinion issued by the Ministry of Industry and Trade (MIT) according to the criteria laid down in Section 42p(2) of Act No 326/1999.

The validity of the long-term residence permit for the purpose of investment is up to two years.

The validity of the residence permit may be repeatedly extended, if the applicant still complies with the conditions for issuing the residence permit and if he proceeds in line with the intent to make the significant investment, namely if the investment proportionally corresponds to the length of stay in the Czech territory and to the extent of the investment to be made, or if the applicant already made the significant investment, he continues with the significant investment.

The MoI shall decide on the application for the long-term residence permit for the purpose of investment within 30 days from the day of lodging the application. For particularly complex cases, the time-limit for issuing the decision is 60 days.

Fees

The fees concerning the application process are the following:

1500 CZK (EUR 60 EUR) for lodging of the application for the long- term residence permit,
1500 CZK (EUR 60)for lodging the application for the extension of the validity of the residence permit,
1000 CZK (EUR 40) for issuing of the long-term residence permit,
1000 CZK (EUR 40) for the extension of the long-term residence permit

Rights for investors

The holder of the long-term residence permit for the investment purpose has the right to work on condition that he has a valid work permit issued by the Labour Office and a valid residence permit, as indicated in S. 89(5) and (2) of Act No 435/20041. Section 16(1) of Act No 262/2006 ensures equal treatment of all employees with regard to working conditions (including health and safety at the work place) as well as remuneration for work. Under Section 27 of Act No 2/1993 the holders of the long-term residence permit for the investment purpose enjoy the freedom of association for the protection of economic and social interests, including trade unions. If the investor is employed in the Czech Republic, Act No 18/2004 provides for the recognition for his professional and other qualification obtained in in another Member State of the European Union, in another contractual State of the European Economic Area or in the Swiss Confederation.

Investors in an employment relationship are also participate in the insurance for the the case of old age, invalidity and death of the breadwinner Investors also have access to health insurance and sickness and maternity benefits

Investors can access self-employment under Section 5(2) and 5(5) of Act No 455/19914 under the same conditions as a Czech national, however they have to submit a proof of a long-term residence permit.

Family members of a holder of a long-term residence permit for the investment purpose, who were granted the long-term residence permit for the purpose of family reunification have the right to work in the Czech Republic without a work permit. hey also have access to education

Citizenship

Holders of the long-term residence permit for the investment purpose do not have direct access to the naturalisation procedure under Section 11 onwards of Act No 186/2013. In order to apply for Czech citizenship, the applicant must be a holder of a permanent residence permit in the Czech Republic under Section 68 of Act No 326/1999. A foreign national may obtain the permanent residence after five years of continuous residence in the Czech Republic. If the foreign national resided in another Member State of the EU as a holder of the EU residence card, the period of his residence is also included in the five years of continuous residence in the Czech Republic.

Citizenship may be granted to an applicant who has held, on the day of application, a permanent residence permit for an uninterrupted period of:

• at least five years,
• at least three years if it concerns an applicant, who has been an EU Member State citizen for a period which, together with the previous residency on the territory of the Czech Republic amounts to at least 10 years.

These periods of residence may be reduced by half, if the applicant resided continuously in the Czech Republic and the period of his absence did not exceed two months, or six months in specified cases (pregnancy, childbirth, serious sickness, study, professional training, or a business trip).

The conditions for granting Czech citizenship are:

• The applicant was never found guilty of a negligent crime and sentenced to imprisonment or found guilty of a crime.
• The applicant resided in the Czech Republic for 10 years.
• In the last 10 years, the applicant was not in the country of which he is a citizen, found guilty of a negligent crime and sentenced to imprisonment or found guilty of a crime (unless the applicant was granted international protection in the form of asylum or supplementary protection).
• The applicant must prove knowledge of the Czech language.
• The applicant must show an elementary knowledge of the Czech constitutional system and cultural, geographical, and historical facts pertaining to the Czech Republic.

The investment visa scheme in Czech republic is now officially running and the scheme listed in website of Ministry of Interior.