In the Czech Republic, cryptocurrencies are legally classified as intangible movable assets, not as legal tender, currency, or securities. The country has a regulated environment for crypto, with a dedicated tax framework introduced through the Digitalization of the Financial Markets Act, aligning with EU MiCA regulations. The Financial Administration of the Czech Republic (FA ČR) is the authority governing crypto taxation, primarily under the Income Tax Act (Zákon o daních z příjmů), specifically Section 10 for individuals. For individuals, gains from crypto are generally taxed as other income. Short-term capital gains, from assets held for less than three years, are subject to a progressive income tax rate of 15% for income up to CZK 1,762,812, and 23% for income exceeding this threshold. Converting crypto to fiat currency or swapping one crypto for another are both considered taxable events. However, a significant long-term benefit allows for 0% tax on gains if the cryptocurrency has been held for over three years. This exemption applies if annual crypto income is below CZK 100,000, or, under new legislation, up to CZK 40 million, effective from 2026. Businesses dealing with crypto are subject to a standard corporate tax rate of 21% on their profits. Cryptocurrency transactions are exempt from VAT, though related services may be subject to standard VAT. Specific activities like staking and DeFi yields are taxed at 15-23% on rewards or gains as ordinary income upon receipt. Mining operations are taxed at 21% for corporate entities and 15-23% for individuals, with associated costs like electricity generally deductible. Non-fungible tokens (NFTs) are subject to 15-23% tax on gains from sales, and their creation may also constitute taxable income. A key recent development is the Digitalization of the Financial Markets Act, signed in February 2025, with provisions becoming effective from January 1, 2025, or 2026. This law implements the EU MiCA regulation and introduces the enhanced tax exemption for long-term individual holders, including the higher CZK 40 million annual income threshold for the three-year holding period benefit. This aims to foster long-term investment in the crypto space within the Czech Republic.
Tax Rates
| Effective individual rate | 15 |
| Capital gains tax | 15-23% short-term, 0% if held over 3 years with conditions |
| Income tax on crypto | 15-23% as other income under Income Tax Act §10 |
| Corporate tax | 21% |
| VAT | Exempt from VAT, services may be subject to standard VAT |
Activity Taxes
| Staking | 15-23% on rewards as ordinary income at receipt |
| Mining | 21% corporate, 15-23% individual, electricity/costs deductible |
| DeFi | 15-23% on yields, swaps, farming as taxable events |
| NFTs | 15-23% on gains, creation may constitute income |
Taxable Events
| Crypto → Fiat | Taxable, capital gains at 15-23% or exempt per holding rules |
| Crypto → Crypto | Taxable swap events, gains taxed at 15-23% or exempt |
Holding Period
| Holding period benefit | 0% if 3+ years held and annual crypto income under CZK 100K or up to CZK 40M, effective 2026 |
Sources