Europe · Central Europe

Czechia

Structurally the best tax outcome in Central Europe for a client whose wealth sits in appreciated securities or a private company — uncapped capital gains exemption after 3 years, no inheritance tax, no wealth tax, and CFC rules that do not reach individuals.

Last verified July 2026183 visa-free destinations

Tax position

Income tax (top): 23% above CZK 1,762,812 (36x the average monthly wage in 2026); 15% below. No municipal income tax.
Capital gains: Taxed as income at 15/23%, but exempt after a 3-year holding for securities or 5 years for corporate shares — and the CZK 40m annual cap on that exemption was REPEALED with effect from 1 January 2026. The cap survives for crypto-assets only.
Wealth tax: none
Inheritance tax: none; gifts are included in the recipient's income tax but exempt from close relatives. Real estate transfer tax also abolished.
Special regime: No expatriate regime, but an optional separate 15% flat base for foreign investment income (forfeits deductions). The real advantage is structural rather than a special regime.
Territorial: No — worldwide income taxed
CFC rules: Yes
Exit tax: Yes — leaving has a cost
CRS: Participating