Daně a legislativa ČR
Cryptocurrency Taxes in the Czech Republic: A Primer for Investors
Key takeaways
- Gains from selling cryptocurrency are taxable income in the Czech Republic and must be reported on the tax return.
- Since 2025 an exemption exists for crypto (time test or value test) — the rules are new and must be verified.
- Conversion to CZK uses the CNB rate or the uniform MF rate, the same as for other income.
- Crypto is still a rapidly evolving area from a legislative standpoint — more than ever, consult current status.
- This is not tax advice — verify the current rules with an adviser or on the financial administration website.
Gains from selling cryptocurrency are taxable income in the Czech Republic — it is not a "grey area" and the tax authority is targeting crypto returns with increasing intensity. Since 2025 the situation has changed: legislators introduced the possibility of an exemption, similar to the one for securities — but the rules are relatively new.
How Crypto Is Taxed Before the Exemption Applies
The classic scenario: if you buy cryptocurrency and sell it at a gain (without meeting exemption conditions), the gain is taxable income. It is taxed as other personal income. You report it on your return in Appendix 2 (other income under Section 10 of the Income Tax Act). Tax base = sale proceeds minus purchase price (converted to CZK).
Exemption from 2025: New Rules
From 2025 an amendment to the Income Tax Act introduced exemptions for cryptocurrencies, similar to those for securities. Specifically discussed are:
- Time test: exemption after a certain holding period (verify details in the current legislation — the rules are new).
- Value test: exemption when proceeds from crypto sales do not exceed a certain annual limit.
Conversion to CZK and Record-Keeping
Just as with ETFs: crypto income in EUR or USD is converted to CZK using the CNB rate or the uniform MF rate. You must record every transaction — date, quantity, purchase price, sale price. Without records you cannot correctly calculate the tax base or prove an exemption. More on record-keeping in the article tax records of trades.
What Makes Crypto Different from ETFs
Unlike ETFs traded through a regulated broker, crypto brokers and exchanges do not automatically withhold tax on your behalf and their reporting to the tax authority is less standardised. Full responsibility for a correct return lies with you. If you traded actively or have an extensive portfolio, consider working with an adviser specialising in crypto taxes — incorrect returns carry risks. General principles for selecting a broker are summarised in how to choose a broker in the Czech Republic.
This article is not tax advice. Cryptocurrency taxation rules in the Czech Republic are evolving rapidly — verify the current legislation on the financial administration website or consult a tax adviser specialising in crypto. See also ETF taxes in the Czech Republic.
FAQ
Do I need to pay tax on crypto even if I did not withdraw money to my bank account?
Yes — the tax liability arises at the moment of selling the cryptocurrency (exchanging for fiat or in many cases also for another cryptocurrency), not when the money reaches your bank account. Consult an adviser for your specific situation.
What happens if I do not declare crypto?
The Czech financial administration is increasing its control activities in the area of crypto. Unreported income can lead to additional tax assessment, penalties, and default interest. It is better to address the situation proactively — making use of voluntary disclosure if applicable.
How do I prove the purchase price of crypto I bought years ago?
Ideally with a statement from the exchange or wallet. If documents are missing, consult a tax adviser — the options for reconstruction depend on the specific case. From now on, document every transaction immediately.