The Czech government has announced that capital gains on Bitcoin held for 3 years will no longer be taxed. Crypto transactions of less than $4,200 per year will also no longer be declared. This is a significant advance at a time when other European Union countries are taxing crypto capital gains.
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No tax on Bitcoin capital gains.
This is excellent news for cryptocurrency holders in the Czech Republic. In a bid to support and promote modern technologies, the Czech government has relaxed its cryptocurrency-related tax policy. In particular, the Czech authorities have introduced two incentives.
On X, Czech Prime Minister Petr Fiala informed that the sale of cryptocurrencies held for more than 3 years will no longer be taxed. In addition to this tax exemption, Prime Minister Petr Fiala also announced that annual crypto transactions of less than 100,000 kronor (around $4,200) will no longer be declared and taxed. In particular, this should boost crypto payments in commerce.
A step in the right direction in a Europe that overtaxes crypto.
Before these measures came into force, the Czech Republic was among the European countries applying a firm tax regime to the crypto industry. Indeed, the tax on crypto capital gains in the Czech Republic was 15%, as in Greece, Hungary and Lithuania. Although this crypto tax rate is higher than in Croatia (12%), Bulgaria (10%), Romania (10%) and Slovakia (7%), it remains well below the European average.
According to a recent analysis note on crypto taxation in Europe, at least 14 countries apply a tax on crypto capital gains of up to more than 15%. These include Italy (42%), Netherlands (36%), Cyprus (0% to 35%), Ireland (33%), Finland (30% to 34%), France (30%), Sweden (30%), Portugal (28%), Austria (27.5%), Spain (19% to 26%), Estonia (20%), Latvia (20%), Slovenia (19%) and Poland (19%).
In a bid to develop the crypto ecosystem, several countries tax-exempt crypto. From United Arab Emirates to the Salvador, this policy seems to attract many investors and boost the local economy. In a Europe that overtaxes crypto, the Czech Republic is making a winning bet by lightening taxation on cryptocurrency.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
