ASK AN EXPERT: What do I need to start investing in Czechia?

It’s common knowledge that making your money work for you is vital to growing your wealth. While it’s possible to invest independently, wealth managers are the trained experts in putting money to the best possible use.

Different managers will levy different charges and fees, while the minimum cash you need to invest varies depending on the product you choose and which institution you invest with. Expats.cz asked Jan Stránský, Wealth Manager at Wood & Co., about what you need to start investing with the professionals in Czechia.

In the internet age, investment companies such as WOOD & Co. are easily accessible. “In order to register as a client, we require the following: two forms of identification, a phone number, an email address, and a personal bank account to link with your account at WOOD & Co.,” Stránský explains.

A Framework Agreement for cooperation and two questionnaires follow, to establish investing preferences. At WOOD & Co., as with many other investment companies, there is no charge for an investment consultation or for registering as a client.  

Your tax domicile is the country where you pay taxes. As income from investment is subject to different taxes depending on your tax domicile, it’s important to know where you should report your income.

“Should a client have a tax domicile abroad, it is the responsibility of the client to report income generated in the Czech Republic accordingly. WOOD & Co. is not a tax advisor, but we are able to provide you or your accountant with any necessary information for your reporting,” explains Stránský.

While investing is possible even with the “smallest” amounts of money, certain investment products and funds require a minimum initial investment. This can vary widely, so it’s important to make sure you have the necessary funds at your disposal.

“WOOD & Co., for example, offers several open-ended funds which focus on stocks, bonds and real estate. The minimum investment for these funds is as little as CZK 100,” Stránský explains.

Other options, while providing additional stability and higher expected returns, are less accessible. “We provide investment opportunities in bonds of which we ourselves are the issuer, where the minimum investment is CZK 250,000. Investments into our funds for ‘qualified investors’, meanwhile, require a minimum investment of CZK 1 million or EUR 40,000,” Stránský concludes.

Should you want to reach out to Jan Stránský at WOOD & Company directly for a free consultation, he can be reached at jan.stransky@wood.cz.