Czech Republic Exempts Bitcoin from Tax for Long-Term Investments

• Bitcoin: tax exemption for possession over 3 years
• Legal protection ensures bank accounts for crypto companies
• MiCA creates harmonized regulation for digital assets

The Czech Republic has announced a significant tax reform that promises to attract the attention of cryptocurrency investors and businesses. Starting January 1, 2025, the country will exempt capital gains on Bitcoin and other digital assets held for more than three years. The decision, unanimously approved by the Czech Parliament, is part of a package of measures that also includes legal protections for cryptocurrency companies and the implementation of the European MiCA (Markets in Crypto-Assets) regulation.

At the time of publication, the price of Bitcoin was quoted at US$99.332,12 with a drop of 1.6% in the last 24 hours.

According to a KPMG report, the new legislation is based on three main pillars:

Tax exemption under specific conditions:

Investors are exempt from paying capital gains tax if they hold their digital assets for more than three years.
Annual transactions with cryptocurrencies that do not exceed 100.000 Czech crowns will also be exempt from taxation.
Above these limits, a flat rate of 15% applies to capital gains.
Legal protections for cryptocurrency businesses:

Banks will be required to maintain accounts for Bitcoin companies and other cryptocurrency-related businesses.
Arbitrary discrimination by financial institutions will be prohibited, ensuring greater security for the sector.
Implementation of the MiCA regulation:

The European regulation will be incorporated into Czech law, creating a regulatory environment harmonized with European Union standards and offering legal clarity for investors and companies.
Kristian Csepcsar, Chief of Advertising at Braiins Mining, highlighted that the new measures put the Czech Republic in a privileged position in the digital asset innovation sector. The changes aim to transform the country into an attractive destination for businesses and investors in the cryptocurrency market.

In addition to tax exemption, legal recognition for Bitcoin companies is one of the most celebrated points. Banks, which previously closed accounts of crypto companies without clear justification, will now have to follow stricter rules. This change aims to foster trust in the local market and boost the creation of startups and projects related to blockchain.

Another highlight is the implementation of the MiCA regulation, which will offer greater transparency and uniformity in the digital assets sector. The European legislation is seen as an important milestone for the consolidation of cryptocurrencies on the continent.

Prague, known as the “Bitcoin capital of Europe,” already has a rich history of innovation in the blockchain sector. With these new measures, the Czech Republic further strengthens its position in the global cryptocurrency scene, attracting long-term investors and promoting sustainable market growth.