How cryptocurrencies are taxed in Czechia

How cryptocurrencies are taxed in Czechia 

In Czechia, cryptocurrencies are taxed as part of your personal income, not through a separate capital gains tax. When you sell, trade, or earn crypto, the profit is added to your total annual income and taxed together with it. 

Income tax rates 

Crypto income is taxed at 15% for most people. For higher incomes, the rate increases to 23% on any amount above about CZK 1.7 million per year (roughly 36 times the average wage). You can check the most recent tax brackets on the Czech government portal 

What type of income is it? 

For most people, crypto profits are treated as “other income” (ostatní příjmy) under § 10 of the Income Tax Act. 

However, if you trade crypto regularly to make a profit, the tax office may treat it as business income (§ 7). 

That means you would need a trade license and must also pay social and health insurance, according to guidance from the Czech Financial Administration 

Which Transactions are taxable? 

● Buying crypto is not taxable. 

● Selling crypto is taxable, but you can deduct what you originally paid, including any transaction fees, from the selling price. 

● Staking rewards are taxable, the reward is taxable when you receive it. You have to declare the value of the staking rewards at the time it was received.

The 3-year exemption 

If you hold crypto for more than three years before selling, the profit is tax-free under § 4(1)(zk) of the Income Tax Act. 

However, the exemption is limited: you can only apply it to up to CZK 40 million of total sale proceeds per year. This limit includes all long-term investment sales such as crypto, stocks, and ownership interests combined. 

Small-transaction exemption 

There is also a separate small-sale exemption. According to § 4 (1)(zj) of the Income Tax Act, income from selling crypto-assets (except electronic money tokens) is tax-free if your total sales do not exceed CZK 100,000 in a year. 

This 100 k CZK limit is based on the sale value, not the profit, and applies even if you held the crypto for a short time. It’s also separate from the 100 k limit for occasional stock sales. 

How to declare your cryptocurrencies in Czechia 

If you sold or earned cryptocurrency in Czechia, you need to include it in your Personal Income Tax Return as “other income” (§ 10). 

Step 1: Get the forms 

You’ll need the Personal Income Tax Return form and Appendix No. 2. Both are available on the Financial Administration website, or you can fill them in online using the My Taxes (Moje Daně / EPO) portal. 

Step 2: Fill in your crypto income 

In Appendix No. 2, go to the section for other income (ostatní příjmy). Here you: 

● Select “C – prodej movitých věcí” (sale of movable property) as the income type. ● Enter the total amount you received from selling or exchanging crypto. ● Enter your purchase costs and fees as expenses.

The difference between these two amounts is your taxable profit. 

Step 3: Transfer to the main form 

Take the result from Appendix No. 2 and include it in your main income tax return. If you’re filing online through the My Taxes / EPO system, this amount is filled in automatically once the appendix is complete. 

How to download your transaction history 

Go to MEXC Data Export and click “required for tax reporting.” 

This option will take you to the page where you can download your transaction history. Once there, you can: 

1. Choose the time period and the files you want to download. Each report can cover up to 540 days of data (up to the previous day). 

2. Click “Export” to generate the file. 

3. If you need data for other time periods, repeat the process. 

The downloaded files include all purchases, sales, and transfers made through MEXC. 

How to use this data for taxes 

After downloading the files, you can use them to calculate your tax obligations by using a crypto tax calculator designed specifically for Czechia, such as our partner Divly. 

Divly helps you to: 

● Easily import your data from MEXC, 

● calculate your gains and losses, 

● and generate a tax report that’s easy to use when filling out your tax return.This way, you can easily manage all your transactions and save time when declaring taxes on your cryptocurrencies traded on MEXC.

Read our Read our ‘Cryptocurrency and Taxes in Germany’ in Czech.