Daně a legislativa ČR
Investor's Tax Return for 2026: A Practical Guide
Key takeaways
- Dividends are always taxed at 15%; the time test does not apply to them.
- Gains from selling shares or ETFs are tax-exempt after a holding period of more than 3 years, or when total proceeds stay below CZK 100,000 per year.
- Since 2025, the cap for the time-test exemption is CZK 40 million per year.
- Foreign dividends must be reported in the tax return, and withheld tax may be credited under a treaty, typically up to 15%.
- Check the exact filing deadline with the tax authority — paper returns are usually due in early April, electronic submissions in early May.
The investor's tax return for 2026 concerns anyone who traded securities, received dividends, or had income from foreign funds. Below is a summary of the key rules applicable to the taxation of individuals' investment income.
Dividends: always 15%, without exception
Dividends from foreign funds and shares are subject to a 15% withholding tax. Neither the time test nor the value test applies to them — you are always taxed. Foreign dividends must be reported in the tax return under the section for foreign income. If your broker or a foreign country has already withheld tax, it can be credited under the applicable double-taxation treaty, typically up to 15%. Your residual Czech tax liability is then reduced accordingly.
Capital gains on securities: two routes to exemption
If you sold shares or ETFs at a gain in 2026, two tests are key:
- Time test: Did you hold the security for more than 3 years? The gain is exempt. Since 2025, a cap applies: only up to CZK 40 million in annual sale proceeds qualifies for the exemption.
- Value test: Did your total proceeds from selling securities in 2026 stay below CZK 100,000? The entire amount is exempt regardless of the holding period.
If neither test is met, the gain (proceeds minus acquisition cost) is taxed at 15%.
Foreign amounts and currency conversion
All foreign income — dividends and sale proceeds alike — must be converted to CZK. You have two options: the unified Ministry of Finance exchange rate published annually, or the Czech National Bank rate on the date of each transaction. Choose one method and apply it consistently throughout the entire tax year.
Filing deadline and how to submit
The filing deadline varies slightly each year. As a general guide: paper returns are typically due in early April, while electronic submissions via the data-box system or the MOJE daně portal are due in early May. Always verify the exact deadlines for the 2027 filing season (covering 2026 income) on the Czech Tax Authority website or in the MOJE daně application.
Need supporting documents? Your broker typically generates a statement of all trades and dividends paid during the calendar year. Keep it for at least 10 years in case of an audit.
Additional things to watch
- A loss on a sale can be deducted — it reduces the taxable base on other sales in the same year.
- Accumulating ETFs (which reinvest dividends) do not distribute dividends periodically — you are taxed only when you sell your units.
- For more on ETF taxation, see the article ETF taxes in the Czech Republic.
This article does not constitute tax advice. For an assessment of your specific situation, we recommend consulting a tax advisor. The basics of fund taxation are summarised in the article ETF taxes in the Czech Republic.
FAQ
Do I have to pay tax on dividends from ETFs?
Yes, dividends from foreign ETFs are taxed at 15%. Neither the time test nor the value test applies to dividends. Foreign withholding tax can, under certain conditions, be credited against your Czech tax liability.
How does the time test work for ETFs?
If you sell an ETF after holding it for more than 3 years, the gain is tax-exempt — subject to a cap of CZK 40 million in annual proceeds (a rule in force since 2025). A shorter holding period without meeting the value test is taxed at 15%.
What is the value test and when should I use it?
If your total proceeds from selling securities during the year do not exceed CZK 100,000, all of it is exempt regardless of holding period. This is particularly useful for beginning investors with small portfolios.
What exchange rate should I use for foreign income?
Either the unified Ministry of Finance rate (published at the start of the year for the prior year), or the Czech National Bank rate on the date of each transaction. You choose the method yourself and apply it consistently throughout the year.