President Petr Pavel of the Czech Republic. Photo: AFP
Key takes
- The Czech Republic will exempt Bitcoin from capital gains tax if held for more than three years.
- The new law has been in alignment with the EU MICA framework and Czech cryptographic regulations since mid-2025.
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The Czech Republic will maintain its holdings of Bitcoin and other digital assets that have been maintained for more than three years, with the signing of a new law that aligns crypto taxation with traditional securities.
🇨🇿 Czech President signs laws to eliminate capital gains tax #bitcoin It will be held for over 3 years
The Czech Republic's great victory pic.twitter.com/lsvim0jdze
– Bitcoin Conference (@thebitcoinconf) February 6, 2025
The law removes tax disadvantages of digital assets by introducing an individual's personal income tax exemption on cryptocurrency benefits after a three-year holding period. The exemption applies only to non-business activities.
“This amendment will come into effect in mid-2025,” he says, linking Czech Republic regulations with the European Union's Markets (MICA) framework.
The law, approved by lawmakers in January, places digital currency on an equal footing with traditional financial products.
Under the new rules, crypto holders selling assets after a certain three years will not have to pay income tax on their profits.
The legislation represents some of the broader changes aimed at modernizing tax regulations in the Czech Republic, particularly on emerging technologies and financial innovation.
Last month, the Czech National Bank considered incorporating Bitcoin into its Forex reserve as a diversification strategy.
It's official
Czech Central Bank plans a Bitcoin Reserve
(Bloomberg) pic.twitter.com/6gqcxn954z
– Willem Midelkoop (@wmiddelkoop) January 29, 2025
The move could position the country as a pro-Bitcoin environment within the European Union and affect policy decisions from other member countries.
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