On December 6, 2024, the Czech Republic's parliament unanimously passed a new tax law that exempts cryptocurrency income below CZK 100,000 ($4,000) annually and capital gains on bitcoin held for over three years. This law is set to take effect on January 1, 2025.
The new regulation encourages long-term holding by allowing individuals to avoid taxes on crypto sales if their total gross annual income from such transactions does not exceed the specified amount. Prime Minister Petr Fiala emphasized that this reform aims to simplify the tax process for crypto holders and support modern technologies.
Additionally, the law stipulates that digital assets must not have been part of business assets for at least three years after ceasing self-employment to qualify for the exemption. Notably, the reforms align with the European Union's Markets in Crypto-Assets (MiCA) framework, which will be fully implemented by December 30, 2024.
This initiative positions the Czech Republic alongside nations like Switzerland and the UAE, which offer similar tax incentives for long-term cryptocurrency holders.