Foreign Ownership Restrictions and Sector Licences in the Czech Republic

|Attorney|Czech Bar Association Reg. No. 14692

Published:2/6/2026Updated:6/30/2026

The Czech Republic offers significant investment opportunities, yet the legal landscape regarding ownership and licensing is increasingly complex. International investors must now navigate foreign direct investment screening, sanctions, and cybersecurity requirements before establishing operations. This guide explains authorization requirements, restrictions, and compliance strategies for foreign entities operating in sensitive sectors.

Key takeaways

FDI screening is broad: Applies to non-EU investors acquiring 10% or more in critical sectors, with penalties including transaction invalidity.

Real estate is open but monitored: No general ban on foreigners exists, but strict sanctions checks apply.

Licensing is mandatory: Operating without a trade license or sector permit is a criminal or administrative offense.

New security era: The implementation of NIS2 and CER directives imposes heavy cybersecurity and resilience obligations on many sectors.

Professional guidance is key: Navigating the intersection of EU law, Czech security regulations, and corporate law requires local expertise.

ARROWS law firm

245 007 740 consultation@arws.cz

Conclusion

Foreign investment in the Czech Republic remains highly attractive, but the era of light-touch regulation in strategic sectors is over. The mandatory FDI screening regime, combined with rigorous sanctions enforcement, requires professional assessment.

ARROWS Law Firm's lawyers routinely manage these issues for multinational corporations, handling FDI notifications, trade licensing, and compliance audits. Our goal is to secure your legal standing so you can focus on commercial success.

Contact the experienced lawyers at ARROWS Law Firm today at consultation@arws.cz. We maintain professional liability insurance covering damages up to CZK 400,000,000.

FAQ – Frequently asked legal questions

1. I am from Taiwan/USA/UK. Do FDI rules apply to me?

Yes. You are considered a non-EU investor. If you invest in a critical sector, mandatory screening applies.

2. How long does FDI approval take?

Standard Phase One is up to 90 days. If Phase Two is opened, it can take an additional 135 days or more.

3. We operated without a trade license for 6 months. What should we do?

File for the license immediately. While penalties are possible, voluntary rectification is viewed more favorably than being caught during an inspection.

4. Can I buy a Czech farm?

Yes, unless you are subject to international sanctions. However, you must respect agricultural land usage rules.

5. Does the new Cybersecurity Act (NIS2) apply to my manufacturing plant?

It might, if you are part of a critical supply chain or designated as an essential entity. A legal assessment is necessary to determine your status.

ARROWS law firm

245 007 740 consultation@arws.cz

About the author

Mgr. Vojtěch Sucharda

Associate, partner

LinkedIn|Czech Bar Association Reg. No. 14692

Managing Partner ARROWS International | Head of Legal Practice Group ETL Global

sucharda@arws.cz 245 007 740

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Disclaimer:

The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (consultation@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.