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Foreign investors need to comply with new FDI rules in the Czech Republic as of 1 May 2021

Starting on 1 May 2021, foreign investors will need to comply with new FDI rules in the Czech Republic. The new rules are broad, meaning that an investment of any kind, intended or made (completed) by a foreign investor which potentially endangers the security of the Czech Republic or its public or internal order, may trigger an investment review.

Non-EU investors should make a preliminary assessment of their intended/planned transactions (both share and asset deals, expansion of existing business and possibly even certain intra-group restructurings) to determine whether they could be subject to the requirements of the new rules.

Our latest coverage includes a summary of the types of investments which are subject to the new FDI requirements, and you can find our original article covering the 2020 draft law establishing rules and procedures for the screening of foreign investments here.

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