Czechia · Tax regime
Czech Capital Gains Exemption and Personal Tax Regime
Materially improved from 1 January 2026. A CZK 40,000,000 annual cap on the capital gains exemption took effect on 1 January 2025 and was REPEALED with effect from 1 January 2026 for securities and corporate shares — the position reverts to an uncapped exemption once the holding period is met. The cap survives for crypto-assets.
The single most valuable and least-known fact in this file: Czech CFC rules do not apply to individuals. A foreign company held solely by a Czech-resident individual falls outside them entirely — the opposite of Poland, where CFC rules gut the flat-tax regime. Combine that with an uncapped CGT exemption after 3 years, no inheritance tax, no wealth tax and no property transfer tax, and Czechia is structurally the strongest of the three Visegrad options for a securities-wealthy family.
Qualifying routes
Gains fully exempt, uncapped from 1 January 2026
Not represented by a security; gains fully exempt, uncapped from 1 January 2026
Sale of securities exempt regardless of holding period if gross income is CZK 100,000 or less in the tax period
The facts
- Total landed cost
- n/a — a regime, not a purchase
- Timeline
- 36–60 months — The 3-year (securities) or 5-year (corporate shares) holding period is the binding constraint
- Physical presence
- Czech tax residency — 183 days or permanent home
- Family
- individuals taxed separately
- Permanent residency
- n/a
- Citizenship
- n/a
- Language test
- n/a
- Dual citizenship
- Permitted
- Requirements
- Czech tax residencythe applicable holding period
- The CZK 40m cap SURVIVES for crypto-assets. A crypto-heavy client gets none of this benefit and remains capped in 2025 and subsequent years.
- The holding period is real: 3 years for securities, 5 years for shares in a corporation not represented by a security. Selling early puts you back at 15/23%.
- Czechia has an ATAD exit tax (effective 2020) — a deemed arm's-length disposal on transferring assets abroad without a change of ownership.
- The koruna is a permanent FX exposure — see the eurozone entry. Do not model euro convergence.
- Health insurance contributions are uncapped even though social security is capped at CZK 2,350,416/year, so high earners face an uncapped 4.5% employee health charge.
- The citizenship clock is long (10 years, or 5 after permanent residence) — this is a tax story, not a passport story.