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The Buzz in Czech Republic: Interview with Jiri Cerny of Peterka Partners

The Buzz in Czech Republic: Interview with Jiri Cerny of Peterka Partners

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“Politics in Czech Republic is currently stable, even though we have several ongoing issues,” says Jiri Cerny, Partner at Peterka Partners in the Czech Republic. “The biggest controversy involves President Milos Zeman’s close relations with China. They promised a large amount of investment, but this has never been fulfilled, and that has led to some scrutiny. Apart from that, we hadn’t had any major political issues recently.”

“The government has recently proposed a Digital Tax which would apply to companies such as Google or Facebook,” Cerny reports. “The proposed tax is 7% of the income these companies generate in the Czech Republic. Although the Digital Tax could work, this percentage is much higher than expected and it might be difficult to implement.”

The Czech Republic, of course, is hardly the only country considering how – and whether – to tax the industry. “Currently, there is discussion across Europe about this issue,” Cerny says, “which is a very delicate question. Small changes might make a big difference. This proposal is yet to be challenged and I am sure that the final result will be different.”

“Other than that, the new law regulating construction is also generating some controversy,” Cerny says. “The law is supposed to make it easier to obtain building and zoning permits. Currently, getting those permits is incredibly hard. This leads to fewer construction projects, the effects of which are already visible in the country, especially in Prague, where we are lacking accommodation. The prices of apartments are high and there is an insufficient number of them, which is disastrous. The housing market is very cold. We need amendments to the existing laws, which would allow easier access to permits, seemingly the only way to fix the problem.”

That’s not the only legislative issue generating a lot of public attention, Cerny says. “Further discussion is based around legislation regarding class action, which, up until this point, has been almost untouched.” In Cerny’s opinion, new legislation is long overdue. “These discussions have been going on for more than three years and we would love to see some results.”

“The Czech economy is relatively stable,” says Cerny, turning to a new subject, “and we have had a low rate of unemployment, resulting in factories having no workers to employ.” Contributing to the competition for workers (and the real estate shortage) is the number of companies seeking entry. “ The market is quite attractive for investors,” Cerny says, “and we have recently witnessed multiple large deals, such as South Korean firms buying office buildings in Prague for almost EUR 250 million.”

The good times shouldn’t end any time soon, he believes. “Investors feel there are no specific concerns or obstacles, meaning that we don’t expect a decline of investment in the near future.” In conclusion, Cerny says that: “I just hope that the systems carries on functioning like it has and that our economic growth remains the same in the foreseeable future, as that is important for both lawyers and non-lawyers alike.”

Czech Republic Knowledge Partner

PRK Partners, one of the leading Central European law firms, has been helping clients achieve their business objectives almost 30 years. Our team of lawyers, based in our Prague, Ostrava, and Bratislava offices, has a unique knowledge of Czech and Slovak law and of the business environment. Our lawyers studied at top law schools in the United States, United Kingdom, Switzerland and elsewhere. They also have experience working for leading international and domestic law firms in a number of jurisdictions. We speak your language, too. Our legal team is fluent in more than 15 languages, including all the key languages of the region.

PRK Partners has one of the most experienced legal teams on the market. We are consistently rated as one of the leading law firms in the region. We have received many significant honours and awards for our work. We represent the interests of international clients operating in the Czech Republic in an efficient way, combining local knowledge with an understanding of their global requirements in a business-friendly approach. We are one of the largest law firms in the Czech Republic and Slovakia. Our specialised teams of lawyers and tax advisors advise major global corporations as well as local companies. We provide comprehensive legal advice drawing on our profound knowledge of local law and markets.

Our legal advice delivers tangible results – as proven by our strong track record. We are the only Czech member firm of Lex Mundi, the world's leading network of independent law firms. As one of the leading law firms in the region, we have received many national and international awards, in some cases several years in a row. Honours include the Chambers Europe Award for Excellence, The Lawyer and Czech and Slovak Law Firm of the Year. Thanks to our close cooperation with leading international law firms and strong local players, we can serve clients in multiple jurisdictions around the globe. Our strong network means that we can meet your needs, wherever you do business.

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