Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=45408&nr=155~2F1997~20Sb.&ft=txt
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Change: 113/2009 Coll.
Ministry of Foreign Affairs says that on 5 December. March 1996
Zagreb signed the agreement between the Czech Republic and Croatia
Republic on the promotion and reciprocal protection of investments.
Parliament gave its assent to the agreement the United States and the President of the
the Republic has ratified it.
Agreement entered into force on the basis of its article 13 on the day 15. may
The Czech version of the agreement shall be published at the same time. In the English text of the agreement,
for its interpretation of the applicable, can be consulted at the Ministry of
Foreign Affairs and the Ministry of finance.
between the Czech Republic and the Republic of Croatia for the promotion and mutual
protection of investments
Czech Republic and the Republic of Croatia, hereinafter referred to as "the Contracting Parties",
Desiring to intensify economic cooperation to the mutual
the benefit of both States,
intending to create and maintain favourable conditions for investments by investors
one Contracting Party in the territory of the other Contracting Party,
Recognizing the need to promote and protect foreign investment with the aim of
stimulate economic prosperity of both Contracting Parties,
have agreed upon the following:
The definition of the
For the purposes of this agreement:
1. The term "investor" means any natural or legal person,
that invests in the territory of the other Contracting Party.
and) the notion of "natural person" means any natural person who is a national
citizenship of either Contracting Party in accordance with its legal system.
b) "legal person" means, with regard to both parties
any company registered or established in accordance with its
jurisdiction and recognised its legal regulations for the legal entity that
has a permanent Office in the territory of one Contracting Party.
2. the term "investment" refers to each assets invested in
accordance with the economic activities of an investor of one Contracting Party to the
the territory of the other Contracting Party in accordance with the legislation of the other Contracting
Parties and shall, in particular, but not limited to:
a) movable and immovable property, any other property rights and rights in rem
rights such as mortgages, pledges, guarantees and similar rights;
(b)), stocks, bonds, unsecured bonds of companies or any
other forms of participation in companies;
(c) the claim or claims) cash on any transactions originating in
the economic value associated with an investment;
(d)) intellectual property rights, including copyright, of the
trade marks, patents, industrial designs, techniques,
know-how, trade secrets, trade names and goodwill associated with the
(e)) the rights conferred by law or contract, licence or
the permit issued under the Act, including concessions for exploration, extraction,
the cultivation or use of natural resources, and the rights provided by the official
authorities to perform economic activities.
3. any amendment to the forms of investment, admitted in accordance with the laws
the legislation of the Contracting Party in whose territory the investment is made,
does not affect its character as an investment.
4. The term "returns" means the amounts yielded from investments and includes
in particular, but not exclusively, profits, interest, capital gains, shares,
dividends, royalties, fees, and other current revenues.
5. the term "territory" means:
-in relation to the Czech Republic territory, over which the Czech Republic
exercises its sovereignty, sovereign rights and jurisdiction in the
accordance with international law;
-in relation to the territory of the Republic of Croatia and the coastal zone, including the
the seabed and subsoil adjacent to the outer over its territorial sea,
which the Republic of Croatia carries out his sovereignty, sovereign
rights and jurisdiction in accordance with international law.
Support and admission of investment
1. each Contracting Party shall promote in its territory investments
investors of the other Contracting Party and admit such investments will be in the
accordance with their national legislation.
2. If a Contracting Party shall accept an investment in its territory, it shall provide,
in connection with that investment, and in accordance with its legislation,
the necessary permits associated with such an investment, and with the implementation of
licensing agreements and contracts for technical, commercial and administrative assistance.
National treatment and MFN clause
1. each Contracting Party shall in its territory for investments and returns
investors of the other Contracting Party treatment, which is the proper and fair
and no less favourable than that accorded to investments or the proceeds of their
its own investors or investments of investors of any revenue and
of a third State, if it is more convenient.
2. each Contracting Party shall accord to investors of the other party within its territory
the parties, regarding the management, maintenance, use, recovery or disposal
with their investments, treatment which is the proper and equitable and not less
favorable, than to its own investors or to investors
any non-Member State, if it is more convenient.
3. the provisions on national treatment and MFN clause referred to in
This article shall not apply to benefits, which provides Contracting
Party on the basis of its obligations as a member of the customs, economic or
Monetary Union, a common market or free trade zone.
4. the Contracting Party agrees that the obligations of the other party
as a member of the customs, economic or monetary Union, a common market or
free trade zone includes the obligations deriving from international treaties
or of bilateral agreements based on reciprocity of this
the customs, economic or monetary Union, a common market or free zone
5. The provisions of this Agreement shall not be construed to undertake one of the Contracting
hand to provide investors of the other Contracting Parties or their
investments or the proceeds of such an advantage, preference or privilege, that
a Contracting Party may provide, on the basis of an international agreement on
is wholly or mainly to taxation.
1. No Contracting Party agree not to directly or indirectly measures leading to the
expropriation, nationalization or any other measures having the same
nature or similar effect against investments belonging to investors with a second
the Contracting Parties shall, except when such measures are taken in the
the public interest, on a non-discriminatory basis and in accordance with the law, for the
provided that the measures will be accompanied by immediate, effective and
a reasonable substitute. Such compensation will be equal to the market value
the expropriated investment immediately before the expropriation or before the
the intended expropriation became publicly known, will include interest from the date of
the expropriation until the date of payment, and will be freely transferable.
2. the amount of the refund will be determined in the convertible and freely transferable
currency and shall be paid without delay to the holder. The transfer will be considered
having been made without delay if it is made in such time that
It is normally required for the completion of formalities relating to the transfer. Referred to
the period starts to run as from the date when the application is submitted, and must not
more than three months.
3. The investor has the right to request an urgent review of its
the case of judicial or other independent authority of the Contracting Party on whose
the territory has been the investment, and the value of its investments in accordance
with the principles contained in this article.
4. The provisions of paragraph 1 of this article shall also apply to cases where the
a Contracting Party expropriates the assets of a company that is established by or
registered in accordance with the laws of the applicable on any part of the
its territory, and in which investors of the other Contracting Party own shares.
Compensation for damage
1. If the investments of investors of one or the other party will suffer
on the territory of the other Contracting Parties damage due to war or other
armed conflict, a State of emergency, riots, insurrection or
rebellion, providing them with the Contracting Party, as regards compensation,
compensation, compensation or other settlement, a treatment no less favourable than that
than what will provide the contracting party to its own investors or
investors of any third State. The resulting payments, whenever
possible, be transferable without delay in freely convertible and
2. Notwithstanding paragraph 1 of this article will be to investors of a Contracting
the parties, who, during the events referred to in the preceding paragraph
suffered damage in the territory of the other Contracting Party of
) and seize their assets, by the armed forces or by an
the other Contracting Party,
(b)) the destruction of their property by the armed forces or by the official authorities of the other
the Contracting Parties, which was not due to combat action or not
invoked when the necessity of the situation,
given fair and reasonable compensation for any damage suffered during the
grabbing or as a result of destruction of property. The resulting payments shall be without
late payment freely transferable in freely convertible currency.
1. each Contracting Party in whose territory they were made to investors
the other Contracting Party shall guarantee that these investments, investors, free transfer
payments related to the investments, and in particular:
and) capital and additional amounts necessary to maintain or increase
(b) the revenue, profits), interest, dividends and other current income;
(c)) the amounts on loans negotiated and documented properly and directly
associated with a particular investment;
d) license or other fees;
(e)) of the proceeds of the total or partial liquidation of the investment;
f) refunds referred to in article 4;
g) incomes of nationals of one Contracting Party, which are allowed to
work in conjunction with an investment in the territory of the other Contracting Parties, in
accordance with its legislation.
2. transfers shall be made without any restriction and undue
the delay in a freely convertible currency at the prevailing conversion rate
as to the date of the transfer, unless otherwise agreed.
3. The provisions of paragraphs 1 and 2 of this article shall apply without
without prejudice to the measures adopted by the European Community.
Assignment of rights
1. If a Contracting Party or its designated agency makes a
payment of his own to the investor according to the guarantees given in the
relation to an investment in the territory of the other Contracting Party, the other Contracting
and each right or assignment) of the claim of the investor or the Contracting Party
It empowered the Agency, whether a transfer has occurred in law or on the basis of
the legal arrangements in this country, as well as
(b)) that the original Contracting Party or its designated agency is in respect of
assignment of rights shall be entitled to exercise the rights and entitlements of this float
Investor and assume the obligations related to the investment.
2. The assignee's rights or claims shall not exceed the original rights or claims
Settlement of investment disputes between a Contracting Party and an investor of the other Contracting
1. disputes between a Contracting Party and an investor of the other party shall be
notified in writing to the investor, including detailed information, host
Contracting Party. Any dispute between a Contracting Party and an investor of the other
the parties will be resolved amicably through consultations and negotiations
through the diplomatic channel.
2. If the dispute cannot thus be settled within six months
from the date of the written notice referred to in paragraph 1, the dispute shall be submitted to the
on the basis of the choice of investors either:
-set up an ad hoc Tribunal pursuant to the arbitration rules, the Commission
The United Nations for international commercial law; or
-The International Centre for settlement of investment disputes (ICSID) set up
"The Convention on the settlement of investment disputes between States and nationals of other States".
3. the award will be based on the
-the provisions of this agreement;
-the legislation of the Contracting Party in whose territory the investment is made,
including the conflict of laws rules;
-standards and generally accepted principles of international law.
4. the decision of the arbitral tribunal is final and binding for both parties in
The resolution of disputes between the Contracting Parties
1. disputes between the Contracting Parties concerning the interpretation or application of this
the agreement shall be resolved through consultations or negotiations through diplomatic channels.
2. If the contracting parties do not reach an agreement within six months following the
the initiation of a dispute between them, will be at the request of one of the parties to the dispute
submitted to an arbitral tribunal which shall be established in the following way:
Each Contracting Party shall designate one arbitrator and the two arbitrators shall appoint and these
the President, who will be a citizen of a third State which maintains diplomatic
contacts with both parties.
3. If one of the parties has failed to appoint its own arbitrator and
did not do so or at the request of the other party, within two months,
shall appoint an arbitrator the President of the International Court of Justice at the request of the
the Contracting Parties.
4. If the two arbitrators cannot agree on the choice of the Chairman within two
months after their appointment, shall be appointed by the President of the President of the international
the Court of Justice at the request of one of the Contracting Parties.
5. If, in the cases referred to in paragraphs 3 and 4 of this article
the President of the International Court of justice cannot perform this function or
If a citizen of one of the parties, the appointment of execute
Vice Chairman, nor the Vice-Chairman and cannot do this
the appointment or if it is a citizen of either Contracting Party, the designation of
It will be done for work the oldest judge in the International Court of
the Court who is not a citizen of any of the Contracting Parties.
6. the Arbitration Tribunal shall determine its own rules rules taking into account the
the objections made by the Contracting Parties. The arbitral tribunal shall adopt its
the decision of the majority of votes.
7. the decision of the arbitral tribunal is final and binding on both Contracting
8. each Contracting Party shall bear the costs of its own Member of the arbitration
the Court and its participation in the arbitration proceedings. The costs of the Chairman and other
expenses shall be reimbursed by the parties equally. The arbitral tribunal may, however,
decide that the larger proportion of the costs shall be reimbursed by one of the Contracting Parties and
This decision shall be binding on both Contracting Parties.
Essential security interests
This agreement shall not prevent a Contracting Party from taking measures
necessary to maintain public order, the performance of its duties in the
connection with the maintenance or restoration of international peace or
security, or for the protection of their essential security
interests, which may include (i) interests deriving from the membership of the Contracting
the parties in the customs, economic or monetary Union, in the common market or in a
free trade zone. "
More favourable provisions
If the legal order of the Contracting Parties or the current obligations under
the international rights or obligations based later between the Contracting
In addition to the parties to this agreement include the adjustment of the General or specific,
which justifies the investments of investors of the other Contracting Party to a treatment,
which is more favourable than that which is provided to you pursuant to this agreement,
such more favourable adjustment will have precedence over the provisions of this
Consultations and exchange of information
At the request of a Contracting Party will be the second party agree with the
immediate consultations on the interpretation or implementation of this agreement. At the request of
the Contracting Parties will be exchanged information about legislation,
the usual administrative procedures, decisions or practice, or
the politics of the other party, which may have an impact on investment,
which are covered by the agreement.
The applicability of this agreement
The provisions of this Agreement shall be applicable to future investments made
investors of one Contracting Party in the territory of the other Contracting Party and also on the
existing investments in accordance with its laws and regulations applicable to the
date of entry into force of this agreement.
Entry into force
This agreement shall enter into force at a later date, to which one of the
the Contracting Parties shall notify the other Contracting Party that it has satisfied
its national legal requirements necessary for this agreement in
Term and termination
1. This agreement shall remain in force for a period of ten years and its validity
It will continue until one year before the expiry of the initial period or
any following period one contracting party notifies the
the other Contracting Party of its intention to terminate the agreement.
2. for investments made prior to the date when the notice of termination
This agreement becomes effective, the provisions of this Agreement shall be
continue in effect for a period of ten years from the date of termination of this
In witness whereof, the duly authorised thereto, have signed this agreement. Given in the
Zagreb on 5 July 2004. in March 1996, in duplicate in the Czech,
the Croatian and English languages, each of these texts being equally authentic.
In the event of a conflict in the interpretation of the English version is decisive.
For the Czech Republic:
Václav Klaus in r.
the Prime Minister
For the Republic of Croatia:
Zlatko Mateša in r.
the Prime Minister
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