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Filing a Tax Return With Multiple Brokers

6 min readCompound

Key takeaways

If you invest through multiple brokers at the same time, you are personally responsible for consolidating all returns and filing your tax return correctly — each broker only sees its own account.

Why multiple brokers are more demanding from a tax perspective

Foreign brokers such as Interactive Brokers, Trading 212 or Freedom24 are not obliged to withhold Czech withholding tax on your behalf. They will provide you with a transaction statement, but whether you include it correctly in your return is your responsibility. If you also hold securities with a Czech bank alongside a foreign ETF platform, you must consolidate everything together.

The value and holding-period tests across multiple brokers

The value test (total proceeds from securities sales ≤ CZK 100,000 per year) is calculated across all sales combined, not separately for each broker. It is therefore enough to sell CZK 60,000 worth at one broker and CZK 50,000 at another for the combined total of CZK 110,000 to exceed the value threshold. For more on the rules, see taxes on ETFs in the Czech Republic.

Common mistakes

Investors most often forget about dividends from distributing ETFs — these are taxed at 15% and the holding-period test does not apply to them. The second mistake is using the wrong exchange rate when converting from abroad. The third is overlooking sales under a DCA strategy, where multiple positions may be bought and sold throughout the year.

Tip: Apps like Portu tracker or an export to a spreadsheet will make consolidation easier. Keep broker statements for at least 3 years after filing your return.

This article does not constitute tax advice. Rules may change — always verify the current conditions or consult a tax adviser. See also taxes on ETFs in the Czech Republic.

FAQ

Do I have to file a tax return if I have brokers abroad?

Yes, a Czech tax resident is taxed on worldwide income. A foreign broker does not withhold Czech tax on your behalf. You file the return yourself and convert your returns to CZK.

Is the value test calculated separately for each broker?

No. The value test applies to the total proceeds from securities sales for the year — regardless of how many brokers you use. The CZK 100,000 threshold is calculated in aggregate.

How do I convert a foreign currency to CZK for my tax return?

Use the CNB rate in effect on the date of each transaction. For simplification, the CNB annual average rate may be used if your tax adviser confirms this is an acceptable approach.

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