The Czech Government has decided to move forward with legislation to exempt long-term cryptocurrency holdings from capital gains taxes. In order to quality, the assets need to be held for more than three years.

The proposal, announced by Prime Minister Petr Fiala on 6 Dec 2024 also includes provisions to simplify tax reporting for smaller cryptocurrency transactions. Under the proposed law, Czech residents would not be required to report cryptocurrency transactions valued at less than CZK 100,000 (approximately USD 4,200 as of the announcement) per year. Additionally, sales of digital assets held for over three years would not be subject to capital gains tax.

Legislation aligns with EU crypto regulations Chamber of Deputies member Jiří Havránek has backed the measure, which gained approval for its time and value conditions after a reading in the Czech parliament. Lawmaker Jan Skopeček confirmed that these changes align with the European Union’s Markets in Crypto-Assets (MiCA) framework. Following the parliamentary session, a government spokesperson highlighted the broader intent of the reforms.

According to Cointelegraph, cryptocurrency taxation remains a complex issue around the world. In many countries, selling or trading digital assets triggers capital gains taxes. For instance, US crypto users may face taxes of 15–20%, depending on income levels.

Elsewhere in Europe, Italy has considered raising its capital gains tax for crypto transactions exceeding EUR 2,000. While the current rate is 26%, lawmakers have debated increasing it to 42%, though recent reports suggest they may scale back the plan to a 28% tax rate. In essence, the Czech Republic’s proposed amendments aim to simplify cryptocurrency taxation while aligning with broader EU regulatory trends.

If enacted, the law could make the country a more appealing destination for crypto investors and businesses. Source: Link .