The Czech Republic 2021 Your Business Partner in the EU

Page 67

V. BUSINESS AND FINANCE

LEASE OF BUSINESS PREMISES The New Czech Civil Code regulates the lease of premises for business purposes, even in relation to lease agreements entered into prior to this date. Compared to general types of property leases, lease of business premises has several specific features. Landlords, property developers and their tenants who are leasing business premises in the Czech Republic should certainly be aware of them.

REQUIREMENTS OF A LEASE CONTRACT The essential requirement of a lease contract is now simply an agreement concerning the object of the lease and the amount of rent. The purpose of the lease no longer needs to be specified in the contract. If, however, the object of the lease will not be used at least predominantly for the operation of business, then no specific conditions shall apply. Neither is it required to have the object of lease approved by the occupancy permit for the contract to be valid. The regulation of leases in the Czech Civil Code is not mandatory. Parties therefore have the opportunity to manage their mutual rights and obligations according to their own specific requirements and needs. The lease contract does not need to be renegotiated and rewritten due to the adoption of the new legislation, although in practice the parties prefer this option to exclude application of certain newly introduced provisions of the Czech Civil Code.

TERMINATING A LEASE OF BUSINESS PREMISES Unless the contracting parties agree otherwise, the notice period for a lease with an indefinite term is six

months, and three months for a fixed term lease. The notice on a fixed term contract must state the reason for terminating the lease, otherwise the notice is not valid. Unless the parties set out other reasons, tenants are entitled to give notice on a fixed term lease before the lease expires, inter alia if (i) they have lost the capacity to carry out the activity for which the business premises were intended, (ii) the leased premises have ceased, for objective reasons, to be eligible for carrying out the activity for which they were intended, and the landlord does not provide the tenant with equivalent alternative premises, (iii) the landlord has grossly breached his obligations in respect of the tenant, and (v) the circumstances on the basis of which the parties concluded the lease agreement have changed to such an extent that it would be unreasonable to require the tenant to continue the lease. The landlord is entitled to give notice on a fixed term lease contract, inter alia if: (i) the real estate in which the business premises are located is to be demolished or rebuilt in such a way that prevents the leased premises from being used any further, provided that the landlord did not and could not have predicted such situation when entering into

The Czech Republic – Your Business Partner in the EU

2021

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Moravia-Silesia Region

11min
pages 140-145

Zlín Region

7min
pages 131-133

Pardubice Region

8min
pages 121-123

Vysočina Region

9min
pages 124-126

Hradec Králové Region

8min
pages 118-120

Ústí nad Labem Region

9min
pages 112-115

Karlovy Vary Region

9min
pages 109-111

South Bohemia Region

8min
pages 106-108

Plzeň Region

11min
pages 100-105

Prague Region

9min
pages 92-94

For Applied Research in Future

5min
pages 88-91

A World Where Unusual Materials Improve the Quality of Life

2min
pages 86-87

Czech Research and Science at the World´s Top

15min
pages 80-85

The Czech Republic – Attractive Country for Study

7min
pages 76-79

EU Citizens Do Not Need Work Permits in the Czech Republic

6min
pages 74-75

Employees – Taxation, Social Security and Health Insurance

8min
pages 69-70

Lease of Business Premises

5min
pages 67-68

Entrepreneurship of Foreign Entities and Its Taxation in the Czech Republic

7min
pages 71-73

Steps for Acquiring a Czech Trade Licence

3min
page 66

Incorporating a Joint-Stock Company

6min
pages 64-65

Incorporating a Limited Liability Company

6min
pages 62-63

Form of Business Activities in the Czech Republic

4min
pages 60-61

TOS VARNSDORF – Leading Global Supplier of Machining Technologies

3min
page 59

Medical Device Manufacture is One of the Most Innovative Industries

7min
pages 46-48

Czech Agriculture is Changing

12min
pages 53-58

Building Industry at the Crossroads

6min
pages 49-52

Czech Railway Industry Exports Over Half of Its Production

9min
pages 36-41

Top Quality and Exquisite Design of Bohemia Glass and Ceramics

12min
pages 42-45

Challenges Facing Czech Engineering

10min
pages 33-35

Czech Energy Industry

13min
pages 28-32

Shock for Exports, Czech Manufactures Counter with Innovation and Flexibility

7min
pages 20-22

Useful Information

2min
page 6

Czech Foods and Farm Produce Accorded Name Protection by the European Union

5min
pages 13-14

The Czech Republic and the Euro

9min
pages 10-12

Czech Records

9min
pages 15-19

Foreword by Milena Hrdinková, State Secretary for European Affairs, Office of the Government of the CR

3min
page 5

The Czech Republic and the European Union

11min
pages 7-9
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