President of the Czech Republic Petr Pavel has signed a bill that exempts bitcoin holdings of more than three years from capital gains tax. This significant move officially makes the bill the law of the land. The tax exemption also applies to cryptocurrencies purchased before 2025 if they are sold under specified conditions in subsequent tax years.
In addition to the capital gains tax exemption, taxpayers in the Czech Republic will no longer be required to report transactions valued at less than 100,000 koruna (~$4,100). This change aligns with the country’s efforts to comply with Europe’s comprehensive Markets in Crypto-Assets (MiCA) regulatory framework.
The Czech Republic’s decision to offer tax incentives to long-term crypto holders is just one of many reforms being implemented in the country. Andrej Babiš, the billionaire former Czech prime minister and current leader of the conservative ANO 2011 political party, has advocated for balanced cryptocurrency regulations and fair tax policies.
Furthermore, the board of the Czech National Bank recently approved a proposal to diversify its reserves by investing in additional asset classes, including bitcoin. Governor Michl stated that the bank could allocate up to 5% of its €140 billion ($146 billion) reserves to bitcoin.
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Disclaimer: This article is for informational purposes only and should not be considered legal, tax, investment, financial, or other advice.
