Czech Republic abolishes capital gains tax on cryptocurrencies held for more than 3 years
It has been reported that the Czech Republic has passed a bill exempting capital gains tax for Bitcoin holdings for more than three years. The decision, which was unanimously approved by the National Assembly on December 6, is scheduled to take effect on January 1, 2025.
According to the Parlamentní Listy news site, the Czech Republic’s new tax exemption law introduces clear conditions under which cryptocurrency transactions can be excluded from personal taxation. “Individuals whose annual gross income from trading crypto assets does not exceed CZK 100,000 ($4,000) can benefit from this exemption,” the Czech media outlet said. “Also, digital assets held for more than three years before sale can also receive tax exemptions, encouraging long-term holding strategies.”
Czech Prime Minister Petr Fiala told “We’ve tried to make it easier,” he posted. “Empowering modern technology for people.”
To qualify for the additional tax exemption, digital assets must not have been part of your business assets for at least three years after you cease to be self-employed. The new framework will apply retroactively in certain cases. Digital assets acquired before 2025 may still qualify for tax exemption if sold under specified conditions in a subsequent tax year.
EU coordination and future regulatory outlook
The Czech Republic’s reform is expected to be integrated into the European Union’s Markets for Cryptocurrency Assets (MiCA) framework and take full effect on December 30, 2024.
MiCA establishes standardized regulations for cryptocurrencies across the EU, creating a unified legal framework for the operation of digital assets.
With this reform, the Czech Republic joins countries like Switzerland and the UAE in offering tax incentives to long-term cryptocurrency holders.
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