Přehled trhů
Topic of the Month April 2028: Tax Year-End and Spring Portfolio Review
Key takeaways
- April is a natural window for the tax return and an annual portfolio review — both can be handled together.
- Check the three-year holding period, the CZK 100,000 exemption limit for dividends, and the application of prior-year losses.
- Rebalancing is best done by topping up the underweighted component from new contributions, without unnecessary selling.
- A review is not a reaction to market movements — it is a mechanical check that the allocation matches the plan.
- Every switch between ETFs is a taxable event — avoid chasing the perfect fund.
Why April Matters for an Investor
For many Czech investors, April is the month of the tax return. The 1 April deadline (extended to 1 July for tax advisors) forces a look at income records — and that is precisely the right time to conduct a full portfolio review as well. It need not involve major changes; the point is a disciplined annual look.
Tax Check: What to Review
Before finalising the tax return, work through these points:
- Holding period: Did you sell ETFs or equities this year? Has the three-year holding period for the exemption been met?
- CZK 100,000 limit: Total proceeds from securities sales above CZK 100,000 are fully taxable — even if the holding period is met, track this limit for complete exemption
- Dividends: Foreign dividends are taxable — do you have a record of all payments?
- Prior-year losses: Have you applied losses that may reduce your tax base?
Spring Portfolio Review
The tax return opens a natural window for reviewing allocation. After a year of market movements, an original 80/20 equity-bond split may have drifted to 85/15 or 75/25 — rebalancing returns the portfolio to its original intent. Key questions for the spring review:
Rebalancing Without Unnecessary Tax
The most tax-efficient way to rebalance is to top up the underweighted component from new contributions — without selling. If you contribute monthly, direct contributions towards what has fallen. Selling the "overweighted" component for rebalancing is only necessary when the deviation exceeds your target tolerance (typically ±5%) and new contributions cannot correct it. For a more detailed approach to the Q2 review, see the dedicated article.
What Not to Confuse with a Review
A review is not a reaction to the market. If the market has fallen, a review is not a reason to sell. On the contrary: if the market has fallen and you have new cash, rebalancing can be an opportunity to buy the underweighted equity component. An ETF strategy works best when the review is mechanical, not emotional.
FAQ
When does the three-year holding period apply for ETFs?
If you hold an ETF for more than three years and total proceeds from securities sales in that year do not exceed CZK 100,000, the income is fully exempt from tax. Details are in the article on ETF taxation in Czechia.
How do I know if my portfolio needs rebalancing?
If the actual allocation deviates from the target by more than 5 percentage points. For example, a target of 80% equities with an actual 87% is a signal to rebalance at the next contribution or by year-end at the latest.
Can I deduct losses from last year?
Losses from securities sales can be applied in the same year or carried forward for up to five years. They must be of the same income type (capital). Consult a tax advisor.
Is it better to do the review in April or at year-end?
Ideally once a year at the same time. April is advantageous because it coincides with the tax return — you have a complete income overview. Year-end is better for forward tax planning.