Secure Your Future With The Long-Term Investment Product (DIP)

Worried about retirement? The new DIP offers employer contributions and potential tax breaks to help you build a secure future. Learn all about it in this article!

From the beginning of 2024, Czech investors can take advantage of a new opportunity to prepare for their future while being rewarded with tax benefits from the state. The new flexible option to provide for old age is called the Long-Term Investment Product (LTIP). The state has listened especially to those who want to decide for themselves in which instruments to invest their funds with the aim of using them for a richer life in later life, and has decided to support them with tax incentives as well.

What makes the DIP interesting and different to other forms of providing for old age?



How is the DIP different and interesting compared to existing pension savings?

Until this year, clients who wanted to prepare money for their future had two basic options for claiming tax relief. They could deduct a maximum of 24,000 for contributions to a pension and a further 24,000 for contributions to an investment life insurance policy. In the case of a pension plan, only contributions over CZK 12,000 per year could be deducted, so clients had to send CZK 36,000 per year to the pension plan for the maximum tax advantage.

From this year, with the advent of the DIP, the total limit merges to 48k and it is up to the client to choose which products to claim tax relief through. The advantage of the DIP is that the full amount invested can be claimed and so there is no minimum limit to deal with. This will increase from 12k per annum to 18k per annum from 1 July 2024. Anyone wishing to claim the maximum tax advantage on their pension should therefore send CZK 5,700 per month to the pension. For the DIP it is CZK 4,000.

Another difference with the pension is the state support, which is not available with the DIP. The maximum state support will be CZK 340 for a monthly allowance of CZK 1,700 or more from 1 July 2024.

In the case of the pension fund, clients choose the investment strategy within the framework of the so-called participation funds and the pension fund manages the investment portfolio for them. In the case of the DIP, clients decide themselves what to invest in. These include shares, ETFs, selected bonds and mutual funds. Compared to a regular portfolio, it is not possible to buy investment certificates and generally riskier products, typically with leverage. On the other hand, it is possible to start smartly, for example through Regular ETF Investments, in a very understandable, cost-effective way and in terms of the size of the investment already from CZK 500.

How can DIP be arranged?

If you are interested in a DIP, you can negotiate all the contractual documentation completely online, simply by contacting the specific institution or an independent financial advisor who can help you with your choice (

Who might be considering a DIP?

A DIP is of interest to those who want to prepare for the future and also want more flexibility in what, how and when they invest their funds. In short, they can decide for themselves what to invest in instead of the strategies that have been imposed and limited by supply.
Given the mandatory minimum length of the DIP, investment instruments that benefit from a longer investment horizon, such as equities, can be used. The DIP is then ideal for clients who want to invest for the long term in low-cost exchange-traded funds (ETFs).

Who can provide DIP?

  • Bank
  • credit union
  • securities dealer
  • investment company
  • self-managed investment fund
  • a similar foreign person authorised to provide its services in the Czech Republic

The DIP provider must be registered in the list of DIP providers maintained by the Czech National Bank or risk a fine.

What can be in a DIP?

  • cash (funds in a savings account, fixed deposit, etc.)
  • shares and bonds traded on the stock exchange, including foreign ones, or government or covered bonds (e.g. mortgage bonds) from EU countries
  • share certificates
  • derivatives used to hedge currency or interest rate risk

👉 If you are interested in further information, please do not hesitate to contact independent private consultancy, cooperating with expat centre ostrava at:


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