Czech Republic Puts Off Implementation of Tax on Crypto Gains

The Czech Republic has enacted a groundbreaking tax reform that will waive capital gains tax on Bitcoin and other digital assets held for more than three years, with the new policy taking effect on Jan. 1, 2025.

In addition, any annual income derived from cryptocurrency below CZK 100,000 ($4,000) will be exempt from taxes.

This change was championed by Prime Minister Petr Fiala as a means to simplify the tax system, encourage long-term investment strategies, and support technological advancement. The exemption will also be applicable retroactively to digital assets acquired before 2025 as long as they are sold under specific conditions.

This update aligns with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which aim to standardize cryptocurrency laws across the region by December 30, 2024. With this reform, the Czech Republic joins Switzerland and the UAE in providing favorable tax policies for those who hold digital assets for the long term.