The Czech Republic exempts long-term Bitcoin from tax
Aimed at modernising financial regulations and encouraging cryptocurrency adoption, the law aligns with the EU’s Markets in Crypto-Assets (MiCA) framework.
The Czech Republic has introduced a landmark law exempting bitcoin holdings of over three years from capital gains tax. Approved unanimously by parliament on 6 December, the new rule will take effect on 1 January 2025, offering significant incentives for long-term cryptocurrency investors.
Under the law, individuals can benefit from tax exemptions if their annual income from crypto transactions remains under CZK 100,000 ($4,000) or if digital assets have been held for over three years. Prime Minister Petr Fiala highlighted the law as a step towards modernising financial regulations and fostering a favourable environment for cryptocurrency adoption.
The tax exemption also includes provisions for assets acquired before 2025, encouraging retroactive benefits under specified conditions. The reforms align with the EU’s Markets in Crypto-Assets (MiCA) framework, placing the Czech Republic among global leaders like Switzerland and the UAE in promoting crypto-friendly policies.
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