An investment in a foreign country is any property value remitted to the foreign subsidiary in relation to entrepreneurial activities of the Czech investor. For example, it may be Greenfield construction of a new production capacity as well as a purchase of an established production, acquisition of an interest in a foreign company, or additional capital for supporting business expansion of the foreign company. The investment has to represent a long-term commitment of the investor for the period of at least 3 years. Any Czech legal person may be an investor. In case of the investment with potential environmental impacts, EGAP reserves the right to request from the investor to submit an expert opinion. Insurance covers the investor against the risk of prevention of the transfer of returns on the investment, expropriation or politically motivated violent damage.
An insurance loss is a full or partial loss of value of the investment, full or partial non-execution of transfer of dividends, returns, profits from the insured investment after all taxes and fees, not even in the waiting period, for political or other non-commercial reasons which are impossibility of conversion of returns, expropriation, violent political acts and breach of contractual obligations by the host country.
The amount of the insurance premium depends primarily on the assessment of risk level of the host country and whether the Czech Republic has concluded with the host country an international agreement on protection of investments, and on the amount of the self-retention. The negotiated amount of the insurance premium already includes possible increase or decrease of the insurance risk and is unchangeable during the whole duration of insurance.
You can find indicative insurance premium through the interactive calculator.
Petr Martásek, Director of Pre-export, Investment and Bond Insurance Department
phone:+420 222 842 340
fax:+420 222 844 130
Michal Pravda, Head of Sub-Department for Insurance of Investments Abroad
phone:+420 222 842 348
fax:+420 222 844 130