As of 15 February 2025, an amendment to Czech tax legislation has come into force, introducing a dedicated tax regime for crypto assets.

Under this reform, cryptocurrencies are no longer classified as intangible movable property but are instead recognized as “crypto assets” with their own tax treatment. This category encompasses not only Bitcoin and Ethereum, but also tokens and other forms of digital assets.

Key Tax Relief Measures

1. Value Test

Tax liability does not arise if an individual’s total annual income from the transfer of crypto assets for consideration, excluding electronic money tokens (stablecoins), does not exceed CZK 100,000.
It is important to note that the threshold applies to income (gross proceeds), not net profit.

Transactions regarded as income include:
-Sale of a crypto asset for Fiat currency
-Exchange of one crypto asset for another
-Use of a crypto asset to pay for goods or services

For 2025, only income realized between 15 February and 31 December is considered. From 2026 onwards, the test applies to the entire tax year.

The value test does not cover income from the transfer of stablecoins, crypto assets held as business property, income derived from capital assets etc.

2. Time Test

Where the period between acquisition and disposal of a crypto asset exceeds three years, income from the transfer is exempt from taxation.

The time test applies to:
-Income from stablecoins
-Cryptoassets acquired at any time, including prior to 15 February 2025

If the aggregate amount of exempt income from assets held for more than three years exceeds CZK 40 million in a given year, the portion exceeding this threshold becomes taxable. For this calculation, exempt income from the transfer of crypto assets, corporate shares, and securities is taken into account.

The time test does not apply to crypto assets classified as business property.

Evidence of the Three-Year Holding Period

Taxpayers are obliged to demonstrate compliance with the time test by means of:
-Statements from centralized exchanges
-Blockchain records (for assets held in private wallets)
-Receipts from Bitcoin ATMs
-Purchase contracts or similar documentation (in case they buy it from another investor)

Ideally, proof should include both documentation of acquisition and evidence of continued holding. A purchase receipt or record of acquisition alone may not be sufficient.

Our services:

4000 CZK for Income tax return incl. taxation of crypto asset operations (price in 2025)
800 CZK/hour for extra consultation