On January 10, 2024, Czech President Petr Pavel signed a bill exempting bitcoin holdings of more than three years from capital gains tax, officially making it the law of the land. The bill, unanimously approved by the Czech Parliament in early December, also exempts cryptocurrencies purchased before 2025 if sold under specific conditions in subsequent tax years.
Taxpayers will not be required to report transactions valued at less than 100,000 koruna (~$4,100). Previously, all transactions were considered taxable events. The Czech Republic's tax incentives for long-term crypto holders align with the country's efforts to comply with the European Union's Markets in Crypto-Assets (MiCA) regulatory framework, which came into effect late last year.
The Czech National Bank (CNB) is also considering investing in bitcoin as part of its reserve diversification strategy. Governor Aleš Michl proposed allocating up to 5% of the bank's €140 billion ($146 billion) reserves to bitcoin, citing its zero correlation to bonds and potential for portfolio diversification.