From 2025, the Czech Republic exempts BTC tax on assets held over three years for small-scale and retail transactions.

The Czech Republic has approved a crypto-focused tax reform that will make certain Bitcoin and other cryptocurrency transactions tax‑exempt from 1 January 2025, with a strong emphasis on long‑term holding and small‑scale retail use. Parliament unanimously passed the Digitalization of the Financial Markets Act on 6 December 2024, and President Petr Pavel later signed it into law, introducing a three‑year holding rule under which profits from the sale of cryptocurrencies by individuals are exempt from capital gains tax if the assets have been held for more than three years. This time-based exemption applies to individual investors only and covers assets acquired before 2025, as long as the sale occurs after the three‑year period has elapsed. Alongside the long‑term exemption, the law introduces a “value test” designed to simplify taxation for small, everyday transactions and casual users. Under this test, individuals do not have to report or pay tax on cryptocurrency income if their total annual crypto transaction volume remains below CZK 100,000 (roughly USD 4,000), which is intended to ensure that low‑value retail payments—such as buying coffee with Bitcoin—are no longer treated as taxable events. The reform aligns Czech rules with the EU’s Markets in Crypto‑Assets (MiCA) framework and is framed by the government as part of a broader effort to modernize financial regulation, encourage digital asset innovation, and position the country as a crypto‑friendly jurisdiction, while keeping business use and higher‑value activity under standard income tax rules.

✨ AI-generated background, compiled from web sources — not editorial content.

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• The Czech Republic exempts long-term Bitcoin from tax (dig.watch)
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• Czech Republic Crypto Tax Guide 2026: The Complete Guide | Waltio (help.waltio.com)
• Czech Republic introduces crypto-friendly law - Global Legal Insights (globallegalinsights.com)
• Czech Republic - Individual - Income determination (taxsummaries.pwc.com)

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