About a third of Czech start-ups are weighing relocation overseas, citing high taxes, bureaucratic burdens, and limited support for growth, according to the Czech Start-up Association. Innovative firms in IT, manufacturing, and healthcare (sectors identified by professionals as strategic priorities) face obstacles that impede development.
A joint survey by the Start-up Association, CzechInvest, and the Ministry of Industry and Trade highlighted taxes, administration, labor law constraints, and access to capital as the main challenges.
Looking to more flexible markets
Adam, a Prague-based start-up connecting clients with craftsmen, is among the companies exploring moving abroad. Speaking to Czech Television, the firm’s regional manager Marek Maxa said: “We perceive excessive administration, which burdens these companies at a time when they need to focus on growing quickly. And the second thing is [having] greater work flexibility, which would definitely help.”
Proposed law may ease burdens
Officials hope a new “start-up law,” currently in preparation, will help address these challenges. The legislation could simplify cooperation with the self-employed and introduce an intermediate stage between employment and full employment, easing both labor and administrative burdens.
Markéta Přenosilová, director of the start-up department at CzechInvest, said Spain offers a model: “Since then, more start-ups have been created there, they are more successful and receive more investment.”
Could political support retain companies?
The ANO movement, likely to oversee the Ministry of Industry and Trade in the next government, has expressed support for the job law. Martin Jiránek, chairman of the Czech Start-up Association, stressed the stakes: “The key is to ensure that there is as little motivation as possible for start-ups to go abroad, to move their headquarters abroad—that means adjusting our environment.”
Preparations for the start-up law are expected to continue through the end of the year, with consultations between CzechInvest, the Ministry of Industry and Trade, and representatives of the start-up community. Lawmakers hope to present a draft for parliamentary discussion in early 2026, aiming to make it easier for high-growth companies to remain in the country.