Czech Republic Property Investment

What is an SE or Societas Europaea?

The SE is a European Public Limited – Liability Company. An SE may be created on registration in any one of the Member States of the European Economic Area (EEA). Article 10 of the Regulation requires Member States to treat an SE as if it is a public limited company formed in accordance with the law of the Member State in which it has its registered office.

The legal form of the European Company, or Societas Europaea (SE), was created by the European Council on the 8 October 2001. It became subject to Community law in all EU member states on the 8 October 2004, over 30 years after negotiations for the creation of a European company were initiated.

According to the EU, the objective of the Statute for a European company is “to create a European company with its own legislative framework. This will allow companies incorporated in different Member States to merge or form a holding company or joint subsidiary, while avoiding the legal and practical constraints arising from the existence of fifteen different legal systems. To arrange for the involvement of employees in the European company and recognise their place and role in the company.”

FAQs

FAQs on the European company such as: How can a European Company be set up? What are the advantages of setting up a European Company? Are companies obliged to become European Companies? Will there be a central register of European Companies? Where will a European Company be taxed? To find answers to these questions click here.

What are the main advantages of a European Company?

One of the main factors is that it reduces the costs of the administrative and legal procedures. There is also considerable draw in terms of an international company showing it’s European intent and the strength of this determination.

What are the costs of setting up a Societas Europaea (SE or European Company) in Czech Republic?

Please see our services page for our latest rates on an SE setup in Czech Republic. Or you can contact us if you would like to proceed or have further questions.

1. Czech inflation grows to 1.9 pct in July yr/yr
(http://www.financninoviny.cz/english/zpravy/czech-inflation-grows-to-1-9-pct-in-july-yr-yr/513324)

High-level overview of article:
Czech annual consumer price growth accelerated to 1.9 percent in July, the highest level since March 2009, and year-on-year inflation in June reached 1.2 percent, the Czech Statistical Office (CSU) said today.

Our take:

2. Modest price growth will continue in months to come, analysts say
(http://praguemonitor.com/2010/08/10/modest-price-growth-will-continue-months-come-analysts-say)

High-level overview of article:
Czech consumer prices will be growing modestly in the coming months, depending on global grain crop, and inflation stays under control boosting economic upturn, analysts polled by CTK said yesterday.

Our take:
Key comment is that they don’t expect CNB to increase interest rates until Q1/Q2 2011.


3. Analysts differ on further development of unemployment
(http://praguemonitor.com/2010/08/10/analysts-differ-further-development-unemployment)

High-level overview of article:
Further development of unemployment in the Czech Republic is very hard to predict as in particular fresh shool graduates stand behind the July growth in the jobless rate, analysts polled by CTK agreed.

Our take:
Growth in July to 8.7% due to university graduates looking for jobs, says article.


4. Czech Inflation Jump May Not Spark Rate Increase, Patria, Unicredit Say
(http://www.bloomberg.com/news/2010-08-09/czech-inflation-jump-may-not-spark-rate-increase-patria-unicredit-say.html)

High-level overview of article:
A jump in the Czech inflation rate to the highest in 16 months may not prompt monetary policy makers to raise interest rates as price growth remains under their 2 percent target, Patria Finance and UniCredit SpA said.

Our take:
It would be a good strengthening factor for the housing market if interest rates stayed down for a longer period of time.


5. GDP growth exceeds 2% yr/yr in Q2
(http://praguemonitor.com/2010/08/13/gdp-growth-exceeds-2-yryr-q2)

High-level overview of article:
The Czech economy grew by nearly 1 percent in the second quarter of this year compared with the previous three months and by more than 2 percent in year-on-year comparison, according to estimates of analysts polled by CTK yesterday.

Our take:
Stats when coming off the bottom always look good.


6. Analysts: Czech GDP growth pulled by industry, exports
(http://praguemonitor.com/2010/08/16/analysts-czech-gdp-growth-pulled-industry-exports)

High-level overview of article:
Czech GDP growth was pulled mainly by industry and exports, while low household consumption was slowing it down moderately, analysts polled by CTK agreed Friday.

Our take:

Colliers Real Estate Review – Mid-Year 2010 for Czech Republic

Below are pictures of CZECH POINT 101′s new Ostrava office. Fantastic location and will be great for the business in Ostrava going forward. Right in the center by the main city hall: Blahoslavova 3324/2A. Here it is on Google maps: http://bit.ly/9Wk9fZ.

CZECH POINT 101 is in the midst of expanding its services to include assistance and management of recreational property in Austria. The Austrian real estate market has been incredibly stable and is a fantastic long-term investment. Transaction costs are very high so these properties are only for those with a 10 year time span.

In conjunction with this we have a fantastic apartment for rent in the middle of the Austrian Alps. It is a two bedroom, family-friendly apartment which is available for week-long rentals. After getting established we expect to be using this for a combined vacation and property search service.

You can have a look at pictures and more details here: www.austria-houses.com.

1. Koruna Extends Gains Against Euro, Climbs to Highest Since 2008
(http://www.businessweek.com/news/2010-07-28/koruna-extends-gains-against-euro-climbs-to-highest-since-2008.html)

High-level overview of article:
The Czech koruna extended its rally to the strongest level against the euro since November 2008, boosted by automatic purchase orders from investors who previously bet on the koruna weakening. It’s been the world’s best performer in July, having gained 3.7 percent against the euro.

Our take:
We expected this to occur but a little more gradually than in one month. It should continue to climb but at a much slower rate for the rest of the year.


2. Loss of interest from investors
(http://www.praguepost.com/business/5202-loss-of-interest-from-investors.html)

High-level overview of article:
Foreign direct investment (FDI), one of the key economic indicators for the Czech Republic, plummeted more than 50 percent last year, but analysts have been quick to defend the buoyancy of the Czech economy and banking system and say that the decline is short-term and expected.

Our take:
Movements from the peak or the trough always seem extreme. The starting point has to be compared.


3. ČNB raises estimate of 2010 GDP growth to 1.6%
(http://www.financninoviny.cz/english/zpravy/cnb-raises-estimate-of-czech-2010-gdp-growth-to-1-6-pct/512045)

High-level overview of article:
The Czech National Bank (CNB) raised its estimate of Czech economic growth in 2010 to 1.6 percent in its latest forecast from the previous 1.4 percent, CNB governor Miroslav Singer said at a press conference today.

Our take:
Slowly but surely.


4. Four largest banks in ČR raise profit to CZK 21bn in H1
(http://praguemonitor.com/2010/08/06/four-largest-banks-%C4%8Dr-raise-profit-czk-21bn-h1)

High-level overview of article:
The four largest banks in the Czech Republic made aggregate net profit of Kc21bn in the first half of 2010, a year-on-year growth of 9.2 percent, the banks’ first-half results have shown.

Our take:
Banks: ‘We were mistaken for gouging everyone during the crisis under the guise of expected loan defaults, but oh well.. by the way, profits up again.’


5. Analysts: Unemployment in ČR grows to 8.7% in July
(http://praguemonitor.com/2010/08/06/analysts-unemployment-%C4%8Dr-grows-87-july)

High-level overview of article:
Unemployment in the Czech Republic grew to 8.7 percent in July from 8.5 percent a month earlier mainly owing to arrival of new school leavers on the labour market, analysts have told CTK in a poll.

Our take:
Still below the much feared 10%. Definitely will not be getting there.


6. Housing construction fell sharply. Number of new dwellings fell by a third
(http://ekonomika.ihned.cz/c1-45490070-bytova-vystavba-rapidne-propadla-pocet-nove-zahajenych-bytu-klesl-o-tretinu)

High-level overview of article:
Domestic construction industry continues to decrease. Construction output compared to the same month the previous year in June fell 4.7 percent against the previous month by 0.4 percent. Said yesterday that the Czech Statistical Office.

Most housing construction dropped a home, opened the year 31.8 percent fewer buildings. Particularly striking is the decline in housing construction in residential buildings by 45.9 percent, the decline in family homes is “only” 19.2 percent.

Our take:
We are on the down side of the wave. Expect a good crunch as demand over-strips dwindling supply.

CZECH POINT 101 interviews one of their tenants who has been a tenant since March 2009 about what it is like renting from us. Vanesa Grabon responds to questions such as how they found us, whether they paid a real estate commission or fee, what do they like and what do they not etc.

The names of two tenants who have paid their rent on time for the last 3 months are rewarded with two digital photo frames! Afterward we interview one of the winners.

I apologize but because of personal holidays and staff holidays two updates were combined into one.

1. Czech Central Banker Sees Rates at Record Low for ‘a While’
(http://www.businessweek.com/news/2010-07-08/czech-central-banker-sees-rates-at-record-low-for-a-while-.html)

High-level overview of article:
Czech central bank Governor Miroslav Singer, who took office last week, said interest rates are likely to remain at a record low for “quite a while.”

Our take:
Good news and hopefully lending rates will also stay down.


2. Inflow of FDI to Czech Republic up at CZK 53.3bn in Q1
(http://praguemonitor.com/2010/07/09/inflow-fdi-%C4%8Dr-czk-533bn-q1)

High-level overview of article:
The inflow of foreign direct investments (FDI) to the Czech Republic rose by Kc17.3bn on the year to Kc53.3bn in Q1 2010, according to an analysis of the Czech economy released by the Industry and Trade Ministry yesterday.

Our take:
Last year was extremely low so it is no surprise to see these types of growth numbers.


3. Analysts: Situation in Czech industry improving
(http://praguemonitor.com/2010/07/12/analysts-situation-czech-industry-improving)

High-level overview of article:
The industrial output growth in May indicates improvement in the Czech industry, analysts polled by CTK said Friday.

Our take:
This is great news as industry is such a fundamental element of the health of the Czech economy.


4. Unemployment rate estimated to be flat in June
(http://praguemonitor.com/2010/07/12/unemployment-rate-estimated-be-flat-june)

High-level overview of article:
Analysts polled by CTK estimated that the Czech unemployment rate will be flat in June and if it decreases, it will only be by one or two-tenths of percentage point from May’s 8.7 percent.

Our take:
Slightly less than the EU average so things are looking good for the recovery.


5. Czech jobless rate down at 8.5 pct in June
(http://www.financninoviny.cz/english/zpravy/czech-jobless-rate-down-at-8-5-pct-in-june/502332)

High-level overview of article:
The jobless rate in the Czech Republic decreased by 0.2 percentage point month-on-month to 8.5 percent in June, compared with 8 percent in June 2009, the Labour and Social Affairs Ministry said today.

Our take:
Fantastic news and it looks like unemployment will not hit 10% as analysts had predicted.


6. June inflation 0.3 pct point higher than ČNB forecast
(http://praguemonitor.com/2010/07/13/june-inflation-03-pct-point-higher-%C4%8Dnb-forecast)

High-level overview of article:
Czech June year-on-year inflation was 0.3 percentage point higher than the Czech National Bank (CNB) had estimated in its latest forecast, Tomas Holub, executive director of the CNB’s Monetary and Statistics Department, said.

Our take:
Evidence of growth and this will be good to strengthen the currency.


7. Analysts: Inflation to grow, won’t be problem for Czech economy
(http://praguemonitor.com/2010/07/13/analysts-inflation-grow-wont-be-problem-economy)

High-level overview of article:
Czech year-on-year inflation will accelerate in the coming months to 2 percent, but the growth will not present a problem for the economy as it will be a result of comparison with last year’s data, economists told CTK in a poll.

Our take:
Excellent forecasts for stable growth over the next period.


8. FinMin improves 2010 GDP growth estimate to 1.6%
(http://praguemonitor.com/2010/07/16/finmin-improves-2010-gdp-growth-estimate-16)

High-level overview of article:
The Czech Finance Ministry improved GDP growth estimate for this year to 1.6 percent from the previous 1.5 percent, according to data in the ministry’s new forecast made public Thursday.

Our take:
Things are picking up.


9. Commercial leasing comeback; 147% Y-o-Y
(http://www.praguepost.com/business/5097-commercial-leasing-comeback.html)

High-level overview of article:
In the second quarter of 2010, transactions totaled 221,600 square meters (2.4 million square feet), a 41 percent growth on the previous quarter and 147 percent rise on the year, according to a new report released by DTZ, a global real estate adviser. The report came on the heels of another positive indicator for the sector, as industrial output in the Czech Republic grew 16.9 percent year on year in May.

Our take:
Very good information that the demand in Brno for space is strong and that there is less supply. We should see some existing projects get finished and even new ones started such as the AZ Tower which aims to become the highest mixed use building of its kind in the country.

We reward tenants who pay their rent on time! Every three months we draw two names of tenants of ours who have paid their rent on time for the previous three months.

This month the prizes are two digital photo frames – to share all your summer memories! Check back next week to watch a video as the two winners are drawn.