Czech Republic to Eliminate Bitcoin Capital Gains Tax for Long-term Holdings
The Czech Republic has passed a law that exempts Bitcoin holdings held for more than three years from capital gains tax. This legislation received unanimous approval from the nation's parliament on December 6 and is set to take effect on January 1, 2025.
- The new amendment is set to exempt Bitcoin and other digital asset holdings from capital gains tax if they are held for over three years or if annual crypto earnings remain below CZK 100,000 ($4200).
- To qualify for the tax exemption, individuals will have to ensure that their digital assets have not been part of business assets for at least three years after ceasing self-employment.
- The legislation also includes retroactive provisions, allowing digital assets acquired before 2025 to benefit from tax exemptions if they are sold under the specified conditions in future tax years.
No capital gains tax on bitcoin has just been passed in The Czech Republic with all members of the parliament voting for it 🇨🇿🔥 pic.twitter.com/i7E8aZHC2W
— Kristian Csepcsar (@KristianCsep) December 6, 2024
- The new rules will also prevent banks from unfairly denying financial services to Bitcoin businesses.
- The reform reportedly aligns with the European Union’s Markets in Crypto-Assets (MiCA) framework, which will take full effect on December 30, 2024.
