Business Indicators Summary

With an overall score of 10.98/12, the Czech Republic is at standard on the economic, legal, and political indicators that make up our Business Index. The Czech Republic, which has successfully transitioned to a market-based economy, is committed to a free market and maintains a generally open economy with few barriers to trade and investment. As a member of the European Union (EU), the Czech Republic has adopted tariffs and standards which conform to EU requirements. The Czech Republic has one of the most developed and industrialized economies among former communist countries in the region. Czech investment laws are now in harmony with EU legislation, although difficulties have been observed in the enforcement of contractual rights. The government encourages foreign investment and maintains an open investment environment, provides equal legal treatment to foreign and domestic investors, and offers export and tax incentives. Foreign currency accounts are permissible both domestically and abroad, and the government allows total ownership of domestic enterprises and the establishment of joint ventures by foreign investors. Foreigners are not allowed to purchase land, but branches of foreign companies can acquire real estate. Corruption appears to be of no serious concern for investors as reflected in Transparency International’s 2009 Corruption Perceptions Index.