Study: Czechia is one of the world's easiest places to do business

Favorable tax regimes, legislation, payroll processes, and other aspects make Czechia a much less complex place to do business compared to its neighbors.

Thomas Smith

Written by Thomas Smith Published on 17.06.2025 10:02:00 (updated on 17.06.2025) Reading time: 2 minutes

Globally, Czechia ranks among the top 10 countries where doing business is easiest, according to a comprehensive ranking by professional services firm TMF Group. It is the fourth-least complex country in Europe to do business, according to the study.

In its Global Business Complexity Index 2025, TMF Group evaluated the complexity of doing business across 79 jurisdictions. These indicators cover a wide range of factors including legislation, compliance, tax regimes, accounting, HR rules, and payroll processes. 

Czechia was the 10th-easiest place to do business globally, TMF Group found. Improving by one spot since last year, “The country has seen efforts to simplify elements of the human resources and payroll sector, including adjustments to tax legislation and clearer guidelines on home office arrangements,” the index wrote. 

However, some challenges remain, “particularly in complying with stringent anti-money laundering and counter-terrorism protocols imposed by banks,” TMF Group explains. “These occasionally require physical presence for account setups, adding to operational complexities.”

“The Czech Republic’s position among the world’s least complex jurisdictions reflects its clear legal and tax frameworks, strong EU alignment and investor-friendly environment. It continues to offer stability and simplicity for international businesses navigating today’s uncertainties."

Jakub Erenyi, TMF Group’s Country Head of the Czech Republic

Starting a business, and recruiting people, in Czechia also poses some challenges. Labor market trends highlight a competitive environment with low unemployment and high employee turnover,” the report describes.

Referencing Czechia’s IT sector—this has a high proportion of foreign workers—”the demand for IT professionals remains significantly higher than supply, intensifying recruitment challenges,” TMF Group writes.

“Demographic shifts and the influx of skilled workers from Ukraine and mid-Asia due to the Czech Republic’s strategic location are also noteworthy. However, this is offset by the trend of Czech nationals relocating to other jurisdictions for opportunities,” the index writes.

The report concludes by mentioning Czechia’s upcoming October parliamentary election: “more populist parties are currently leading the polls as favorites…with a potential change in government expected.” This could, TMF Group implies, change the business landscape nationwide.

Commenting on Czechia’s relationship with the EU, TMF Group ends with: “The Czech Republic remains aligned with the broader EU direction. Therefore, the complexity of operating in the country is very low.”

In the overall index, Greece had the world's most complex business environment. Conversely, the Cayman Islands is the world's easiest place to do business. Out of all European countries surveyed, Denmark was the least-complex country for business.

This is not the first time this year that Czechia has performed well in business-related rankings: an April 2025 study with World Bank data found that Czechia has Europe’s third-lowest tax rate overall.

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