The Czech Republic exempts capital gains tax on cryptocurrencies held for more than three years.

The Czech Republic has passed a law that exempts capital gains tax for Bitcoin held for over three years. The law was unanimously approved by parliament on December 6 and will take effect on January 1, 2025. According to the news website Parlamentní Listy, the new tax law stipulates clear conditions under which cryptocurrency transactions can be exempt from personal taxation. Individuals whose annual total income from cryptocurrency transactions does not exceed 100 thousand Czech koruna (approximately 4,000 USD) and who hold their digital assets for more than three years before selling them can enjoy tax exemption. This policy encourages a long-term holding strategy. Czech Prime Minister Petr Fiala stated on the X platform that the new tax law "ensures that if cryptocurrencies are held for more than three years, their sale will not be taxed." Furthermore, digital assets that have not been part of commercial assets for at least three years after ceasing self-employment also qualify for tax exemption. The new framework also applies in some cases to digital assets acquired before 2025, as long as they are sold in subsequent tax years under the stipulated conditions. The reforms in the Czech Republic are expected to integrate into the EU's Markets in Crypto-Assets (MiCA) framework, which will come into full effect on December 30, 2024. MiCA establishes standardized regulations for cryptocurrencies in the EU, creating a unified legal framework. With this reform, the Czech Republic joins countries like Switzerland and the UAE in providing tax incentives for long-term cryptocurrency holders.