Daně a legislativa ČR
The CZK 40 Million Cap from 2025: Who Is Affected
Key takeaways
- From 2025: the time-test exemption applies only to annual sale proceeds up to CZK 40 million.
- Proceeds above CZK 40 million are taxable even if the three-year test is met.
- For the vast majority of retail investors, nothing changes.
- The cap applies to sale proceeds, not to total wealth.
- Consult an advisor when planning large sales.
From 2025, a new cap applies: the time-test exemption on gains from selling securities covers only annual proceeds up to CZK 40 million. Proceeds above this threshold are taxable even if the three-year condition is met.
What exactly the cap restricts
Until 2024, the time-test exemption was in principle unlimited — meet the three-year condition and the gain was exempt regardless of size. From 2025, the law specifies that sale-proceed income exempt under the time test must not exceed CZK 40 million per year. Proceeds above this threshold are taxed at 15%.
Who is actually affected
The cap doesn't concern the vast majority of retail investors. CZK 40 million in sale proceeds per year is a very high threshold. It affects:
- investors with a portfolio worth tens of millions who sell a large portion at once,
- entrepreneurs selling company shares and moving to a different investment,
- cases involving inheritance or restructuring of large estates.
What hasn't changed for the ordinary investor
For an investor who regularly invests thousands to tens of thousands of CZK a month, the CZK 40 million cap is invisible. The time test still works as before — hold securities for more than 3 years and the gain is exempt. You only need to watch total sale proceeds in the year you plan larger withdrawals.
An overview of both tests and the basics of taxation is available in taxes on ETFs in the Czech Republic and the 3-year time test. This article does not constitute tax advice — verify current rules or consult a tax advisor.
FAQ
What exactly is the CZK 40 million cap from 2025?
It is the upper limit on sale proceeds from securities to which the time-test exemption can be applied. Sale proceeds above CZK 40 million per year are taxable even if the three-year test is met.
Does the cap also affect the CZK 100,000 value test?
The CZK 40 million cap explicitly applies to the time-test exemption. The value test (up to CZK 100,000 in proceeds) operates separately and is not directly affected by the cap.
How is the tax calculated if I exceed the cap?
The exact calculation depends on the ratio of proceeds above and below the cap. We recommend consulting a tax advisor, especially when planning to sell large positions.