Czech President Enacts Crypto Tax Exemption Law

Czech President Petr Pavel has officially signed a bill exempting Bitcoin holdings of over three years from capital gains tax. While largely symbolic, this move solidifies the legislation as law, according to local reports.

The tax exemption, which received unanimous approval from parliament in early December, will also apply to cryptocurrencies acquired before 2025, provided they meet the required holding conditions in future tax years. Additionally, taxpayers will no longer need to report transactions below 100,000 koruna (~$4,100), a departure from previous rules where all transactions were considered taxable, similar to the U.S. system.

Czech Republic Aligns Crypto Laws with Europe

Parliamentary representatives have stated that the tax amendments are part of an effort to align with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which took effect last year. The Czech Republic’s decision to offer tax incentives for long-term crypto holders reflects broader financial reforms in the country.

For example, Andrej Babiš, former Czech prime minister and leader of the conservative ANO 2011 party, recently called for balanced cryptocurrency regulations and fair tax policies. Speaking at The Block’s Emergence conference in Prague last December, he emphasized the importance of regulatory clarity for the industry.

Czech Central Bank Explores Bitcoin Reserves

In a separate development, the Czech National Bank is considering adding Bitcoin to its asset portfolio. The bank’s board approved a proposal to explore investments in alternative assets, including cryptocurrencies. Governor Aleš Michl indicated that up to 5% of the bank’s €140 billion ($146 billion) reserves could be allocated to Bitcoin as part of a diversification strategy.

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