czech republic residents are increasingly prioritizing long-term financial security, as evidenced by a surge in participation in the state-supported “DIP” (dlouhodobý investiční produkt) investment scheme. Launched in 2024, DIP is gaining traction as a flexible and tax-advantaged option for individuals planning for retirement and long-term financial goals. Recent data shows over 218,000 participants and nearly 8 billion Czech Koruna (CZK) invested as of the fourth quarter of 2025,signaling a growing shift towards proactive investment strategies within the country.
Czech Republic residents are increasingly turning to long-term investment products to secure their financial future, with over 218,000 individuals participating in the state-supported scheme known as DIP (dlouhodobý investiční produkt) since its launch in 2024.
As of the fourth quarter of 2025, nearly 8 billion Czech Koruna (CZK) has been deposited into DIP accounts, according to data from the Association for Capital Markets of the Czech Republic. The majority of these funds – 88% – are allocated to investment funds, while approximately 5% are held as deposits and 7% in other investments.
Currently, 32 local and four foreign providers offer DIP products in the Czech market, a list of which is maintained by the Czech National Bank. No other entities are authorized to offer this type of investment.
The DIP is designed for long-term investors – typically those with a time horizon of ten years or more – who prioritize gradual wealth accumulation over quick profits. It’s also well-suited for individuals who prefer regular monthly investments and want to take advantage of tax benefits or employer contributions, according to consultant Lenka Kousková. More details about DIP and its options were previously reported.
Jana Brodani, Executive Director of the Association for Capital Markets, emphasizes the broad applicability of DIP, noting that it encompasses a wide range of investment options, including bank accounts, investment funds, ETFs, publicly traded stocks, and bonds. However, investors must maintain the investment for at least ten years and until age 60 to avoid repaying any tax benefits received.
Brodani added that the flexibility to create a diversified portfolio is a key advantage. “Individuals can choose between conservative and dynamic investments, control associated fees, and tailor the investment to their needs. Utilizing multiple providers is also an option. It’s generally advisable to balance fees, potential returns, and portfolio resilience. Putting all retirement funds into a single investment isn’t usually the best approach,” she explained.
What is DIP?
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DIP (dlouhodobý investiční produkt), or Long-Term Investment Product, launched on January 1, 2024, as a new, state-supported investment vehicle designed to help Czech citizens better prepare for retirement. Compared to traditional pension plans, DIP offers more flexible investment options with the potential for higher returns.
Where can I set up a DIP? At state-regulated institutions: banks, savings and credit unions, securities traders (regulated), investment companies, self-governing investment funds, and foreign providers authorized to operate in the Czech Republic.
What can I invest in? State-regulated products: bank deposits; stocks traded on a regulated market; bonds issued by EU member states, foreign banks, or central banks of such states; covered bonds (mortgage bonds); mutual funds and exchange-traded funds (ETFs); and hedging derivatives used solely to hedge assets within the DIP.
What can’t I invest in? Most corporate bonds not traded on a regulated market; and risky instruments such as leveraged investment securities.
How does the tax benefit work? Individuals can deduct the total annual amount of all contributions to their DIP portfolio from their taxable income, up to a maximum of 48,000 CZK per year, provided they haven’t already utilized other state-supported tax deductions – such as supplementary pension insurance, additional pension savings, life insurance, and, newly, long-term care insurance. Investments in all products can be combined up to the maximum deductible amount. Both employees and employers can benefit from tax advantages, up to 50,000 CZK annually.
When can I withdraw funds? After 120 months of saving and reaching the age of at least 60. Exceptions exist for early withdrawal – such as in cases of third-degree disability – and for transferring funds to a new DIP provider.
What are the penalties for early withdrawal? If the conditions aren’t met, the investor will need to repay previously claimed tax benefits, along with employer contributions, potentially up to 10 years retroactively.
According to Michal Mošnička, Director of Scott & Rose, which operates the financial portal Finparáda.cz, it’s also important to consider the ability to set up regular monthly investments in Czech Koruna for ETFs or stocks, and the range of investment options available. He also points out that ongoing fees, calculated as a percentage of the total investment value, can significantly impact returns over time.
Investment advisor Richard Kunovský adds that while low costs are important, it’s equally crucial for investors to be able to adhere to the chosen strategy and investment horizon long-term, avoiding interruptions during unfavorable market conditions. “It’s also impossible to predict which DIP will deliver the best returns in advance. The cheapest DIP alone isn’t sufficient. A well-chosen investment strategy, a willingness to invest for the long term, and alignment with an overall financial plan are far more important,” he concludes.
How to Choose the Best DIP?
Kousková advises individuals to focus on expected returns and associated risk – that is, the chosen investment strategy – when selecting a DIP. Fees, both upfront and ongoing management fees, also play a critical role. The quality and credibility of the company offering the DIP should also be considered, as well as the investment duration, tax implications, and specific rules for early termination.
“I recommend meeting with an advisor to discuss a suitable product for my individual circumstances and life situation. Be cautious of salespeople offering these products, especially those with long-term upfront fees. It’s different for someone about ten years from retirement versus a young person just starting their career and with 40 years until retirement,” Kousková explains.
According to Mošnička, it’s also important to consider the ability to set up regular monthly investments and the breadth of investment options offered. He also stresses that ongoing fees, calculated as a percentage of the total investment value, can significantly erode returns over the long term.
The growing popularity of DIP reflects a broader trend toward proactive retirement planning and the increasing availability of sophisticated investment tools.
Which DIP is the Best?
A recent analysis by Finparáda.cz compared 33 DIP providers as of September 1, 2023, and found that the conditions have remained largely unchanged since then, with Česká spořitelna making minor fee reductions in February.
Patria Finance topped the rankings, closely followed by Raiffeisenbank and Portu. The products were scored out of 100 based on several factors, weighted according to their importance.
Top Ten DIPs
| Provider | Overall Score | Score for Fees and Costs (Weight 35%) | Score for Investment Options (Weight 25%) |
|---|---|---|---|
| Patria Finance | 87.6 | 93.1 | 100 |
| Raiffeisenbank | 85.8 | 89.3 | 100 |
| Wood Retail Investments – Portu | 82.9 | 79.6 | 100 |
| Fio banka | 82.6 | 83.2 | 100 |
| Česká spořitelna | 81.3 | 79.5 | 100 |
| Czech Asset Investments – Investona | 78.7 | 62 | 100 |
| Fondee | 64.7 | 79.1 | 30 |
| IN Equity Czech Republic | 54.7 | 63.4 | 10 |
| KK Investment Partners | 52.9 | 29.6 | 50 |
| Banka Creditas | 50 | 100 | 30 |
“There isn’t one best DIP for everyone,” Mošnička says, but notes that some products offer better conditions based on the parameters analyzed.
Fees and costs accounted for 35% of the overall score, while the range of investment options contributed 25%. Other factors considered included the digitalization of services, fairness and transparency of terms, and financial accessibility.
Patria Finance’s top ranking was attributed to its low and transparent fees – including a cost ratio of 0.4%, a currency exchange fee of 1.5%, and an annual asset management fee of 0.12%.
Raiffeisenbank scored just slightly lower, with its DIP offering advantages due to low fees and the elimination of a minimum purchase fee. The product has an entry fee of 0.2%, a currency exchange fee of 0.9%, and an annual fee of 0.2% of the value of assets under management.
Portu, from Wood Retail Investments, is also easy to use, thanks to the option of pre-set portfolios and a zero entry fee. The annual fee for Portu is 0.5%.
