Crypto in the Czech Republic: Big News For Holders in 2025

In December 2024, the Czech Republic introduced a tax exemption law for long-term Bitcoin holders. 

This demonstrates a commitment to technological innovations, helping to transform the country into another favorable region for cryptocurrency enthusiasts.

This article aims to review how crypto works in the Czech Republic, including a new way to bring your crypto tax bill down all the way to zero.

How Does Czech Law Define Crypto?

The Czech National Bank does not officially define cryptocurrencies, nor does it prohibit crypto transactions.

In other words, it’s effectively legal to use crypto in the country.

The general guidelines advise treating crypto as commodities or movable assets. Which is why profits made with crypto are subject to taxation under Section 10 of the Income Tax Act.

Tax Rules in the Czech Republic

The tax rates in the Czech Republic have remained stable over the past several years, reflecting high economic stability within the region.

In 2023, the country was ranked 8th in the International Tax Competitiveness Index — only three points lower than the previous year.

There are five major types of taxes that an individual or a company may need to declare:

1. Corporate Income Tax (CIT): 19%.
2. Value Added Tax (VAT): 21%.
3. Personal Income Tax: 15% or 23%, depending on your yearly income.
4. Withholding Tax: Which applies to dividends, interest, royalties, etc. It’s set at 15% for residents of the Czech Republic, the EU, and the EEA, and 35% for everyone else.

How is Crypto Taxed in the Czech Republic?

There is no capital gains tax in the Czech Republic. The amount of tax you’ll need to pay on crypto depends on your status and yearly income.

• For individuals trading crypto or being paid in digital assets, an income tax of 15% is applied.
• Individuals with a gross income over CZK 1,582,812 are subject to an increased tax rate of 23%.
• Businesses must pay 19%.

In general, people need to pay taxes on crypto in the Czech Republic in two cases: gaining profits and converting crypto to fiat.

Here are some examples: 

• Selling crypto for fiat
• Staking
• Mining
• Airdrops and hard forks
• Crypto gifts and donations
• Gains from DeFi transactions

However, thanks to a crypto-forward policy that came into effect this year, you don’t need to report crypto transactions valued at less than 100,000 CZK.

In addition, profits derived from crypto transactions that remain on-chain are not subject to taxation. In short, what happens on the blockchain stays on the blockchain.

New Crypto Policy Gives Holders a Free Pass

Starting from January of this year, the Czech government will entirely exempt long-term holders from having to pay taxes on their crypto gains. 

To take advantage of this, you’ll need to hold your assets for at least three years.

This law applies to all assets purchased before 2025, enabling cryptocurrency investors to benefit retrospectively.

Notably, as part of this new policy, Czech residents are also exempt from reporting crypto transactions valued at less than 100,000 CZK (valued at around $4,000 USD at press time.

Does the Czech Government Track Crypto?

As a member of the EU, the Czech Republic complies with AMLD5 regulations designed to combat money laundering and terrorist financing.

According to these rules, cryptocurrency exchanges and other virtual asset service providers (VASPs) have to diligently conduct know-your-customer (KYC) procedures. They also have to provide information about cryptocurrency investors to authorities by request.

Therefore, the Czech government has access to all transactions that occur with the help of officially registered virtual asset providers.

FAQ

Is Crypto Taxed in the Czech Republic?

Yes, individuals must pay a 15-23% tax on profits derived from crypto. However, as of 2025, individuals don’t have to pay tax on crypto held for three years or longer.

Is Crypto Legal in the Czech Republic?

Although no specific laws regulate crypto in the Czech Republic, any individual can legally use digital assets in the country. Businesses involved with crypto must obtain a VASP license.

Is the Czech Republic Crypto-Friendly?

Thanks to the Czech Republic’s new law exempting cryptocurrency investors from tax if they hold assets for three years or longer, the country has recently proved itself to be a friendly region for crypto holders. 

Let’s hope this trend continues over the next few years.