Prime Minister Announces Major Tax Relief for Crypto Investors

The Czech government has approved legislation to exempt cryptocurrencies held for more than three years from capital gains tax. Prime Minister Petr Fiala confirmed the move in a Dec. 6 statement, highlighting a series of crypto-friendly tax reforms.

Under the proposed law, taxpayers will not need to report transactions under 100,000 Czech koruna (approximately $4,200) annually. Moreover, individuals selling digital assets held for over three years will be exempt from paying taxes on these transactions.

“This means that, for example, buying coffee with Bitcoin will no longer be a taxable event,” said Fiala, signalling the country’s commitment to fostering a more accessible crypto environment.

Aligning with European Crypto Regulations

The legislation, championed by Chamber of Deputies member Jiří Havránek, has been described as a step towards integrating crypto into the Czech financial system. Jan Skopeček, another prominent lawmaker, confirmed that the Chamber of Deputies approved the proposed time and value conditions for the law in a Dec. 6 reading.

A spokesperson for the government explained that the amendments align with Europe’s Markets in Crypto-Assets (MiCA) regulatory framework, aimed at harmonising crypto regulations across the EU. “Today, we have taken an important step so that crypto business in the Czech Republic can function and continue to develop,” the spokesperson said.

Comparing Global Crypto Tax Policies

The Czech Republic’s move contrasts with approaches in other countries. In the United States, crypto trading is subject to capital gains tax rates ranging from 15% to 20%, depending on income. Italy recently considered increasing its crypto tax on transactions exceeding €2,000 from 26% to 42%, though lawmakers are now debating a reduced rate of 28%.

These developments position the Czech Republic as one of the more crypto-friendly jurisdictions in Europe, potentially attracting investors and businesses to its growing digital asset market.