Repair a neglected building – a guest house or pub with up to 45% public support!

The OPPIK Real Estate – Tourism open call now offers unprecedented opportunities for tourism investors from the ranks of SMEs. The call defines 57 municipalities (including Železná Ruda, Kvilda, Srní, Modrava, Jetrichovice, Hrensko, Lipno nad Vltavou, Podhorska Ves, Horni Plana, Frymburk, and many others) in which it is possible to repair a neglected building that becomes a modern guesthouse with a restaurant. This intention can be realized with the support of public subsidies. One applicant (IČ) may submit up to 3 separate grant applications, each application may request a grant in the range of CZK 1 to 100 million. One application must always be tied to one place of implementation. Theoretically, one applicant can receive up to CZK 300 million for his / her tourism development plans.

However, the challenge has a number of limitations. For example, only a small business will receive up to 45% support. The medium-sized enterprise must be satisfied with a maximum of 35% support. Another condition is that the object to be repaired must have a minimum area of ​​250 m2. The applicant will receive a maximum of CZK 9,000 per m 3 of enclosed space within the subsidy.

It is the duty of the beneficiary who wants to obtain public support (subsidies), among other things, to employ new co-workers. As a rule, for every 10 million received grants must employ 1 new person. In addition, the supported entity must carry out the supported activity at the project implementation site for the period of sustainability (5 years) according to the conditions in the grant decision.

The object, which will be the subject of the subsidized project, has to be technically neglected at present and for the economic activity of the user of the property it will be possible to use it effectively only on condition of realization of the reconstruction project. The reconstruction project cannot be realized solely for the purpose of unsatisfactory layout of existing properties. For this reason, all properties must be registered with the National Brownfields Database as part of the application.

Applicants who would interrupt a building under construction due to this subsidy call do not have a chance. It will be verified up to a year retrospectively whether the construction has not been interrupted. The only exception is when the building under construction was sold to an unrelated person. This building under construction and sold can be supported by subsidies.

An interesting option is the possibility of demolishing the existing building if it proves that its repair is unprofitable. Another interesting opportunity is the possibility to increase existing flooring and cubage by up to 200% of existing values. From the existing 100 m2 can be suddenly done with a subsidy of 300 m2. Of course, it is necessary to ensure that the condition also meet the m3 at the same time, ie that the existing 100 m3 to build a maximum of 300 m3. If these limits are exceeded, the subsidy will be reduced accordingly.

It is also important that the applicant does not have to be the owner of the property at the time of the application. The applicant is obliged to become the owner of the property at the latest at the moment of approval of the first application for payment in the first stage, ie after submitting the application for the grant, approval of this application by the provider and subsidy. This is the moment when the applicant will prove his property rights at the latest. This option gives applicants a relatively broad field of action in designing their business plan.

Obvious conditions are good financial health of the applicant, transparent property structure of the applicant, proper and timely payment of taxes and fees, or the registered office of the applicant’s controlling entities outside tax havens, publication of economic results and analytically separated accounting records of the project. Support entity (ID) may not sell the object – alienate it in any way. On the other hand, it is possible to sell the whole company (ID) with the supported object.

Perhaps the most important condition is that the eligible costs incurred for the reconstruction of the solved objects must be higher than the usual price of these objects before reconstruction. It must be a technical improvement of the building, not a mere repair of the building. Of course, the applicant will have to deal with the building permit, or with a confirmation that the building permit is not required for the reconstruction project. The applicant will have to handle this by 30.6.2020.

A number of other annexes must be submitted to the grant application. (For example, photos, declarations, confirmations, consents, etc.) The full list of mandatory annexes, as well as the conditions and obligations, includes the text of the call and its annexes. Therefore, it is always worthwhile to cooperate with an experienced grant advisor who will help with the preparation of the application, administration and control of the subsidized project.

Essential data for the call:

  • Aid intensity (EU co-financing) – 35% for medium-sized enterprises and 45% for small enterprises
  • Project subsidies up to CZK 100 million
  • The total allocation of the call was CZK 600 million
  • Project deadline 31.3.2023
  • Call for proposals 16.7.2019
  • Receipt of applications from 16.7.2019