The Czech Republic has officially passed new legislation exempting Bitcoin and other digital assets from capital gains tax if held for more than three years, a move expected to boost the country’s appeal for long-term crypto investors.
President Petr Pavel recently signed the law, according to reports from BTC Prague, which aligns the Czech Republic’s cryptocurrency taxation policies with those of traditional securities.
BREAKING: CZECH HODLERS WIN: No Bitcoin Taxes After 3 Years! 🏆🔥
It’s official! The Czech president @prezidentpavel has signed the new law, bringing huge benefits for Bitcoin holders in the country.
✅ No capital gains tax on BTC after 3+ years of holding
✅ A time & value…
New regulation to take effect in mid-2025
This new regulation is set to take effect in mid-2025, marking a significant shift in the nation’s approach to crypto investments.
The tax exemption, which applies to individual investors and non-business activities, eliminates previous disadvantages for long-term cryptocurrency holders.
Under the new rules, individuals who sell Bitcoin or other digital assets after a holding period of three years will no longer be required to pay income tax on profits.
This change mirrors the tax treatment for long-term stock investments in the country, creating a more favorable environment for cryptocurrency investors.
The Czech Chamber of Deputies approved the new law in January, with the move being part of broader efforts to modernize the country’s financial regulations.
This law brings the Czech Republic’s crypto taxation in line with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which aim to create a unified regulatory framework across EU member states.
In another notable development, the Czech National Bank is currently reviewing a proposal to add Bitcoin to its reserves.
However, this process may take several months, and sources suggest that any exposure to Bitcoin will be significantly lower than the initially proposed 5% of reserves.
The idea was introduced by Czech National Bank Governor Ales Michl, but it has faced resistance from European Central Bank President Christine Lagarde, who has stressed the need for liquidity and security in reserve assets.
In light of this, the Czech National Bank has commissioned a study to assess the feasibility of adding Bitcoin to its reserves.
Governor Michl has stated that he will respect the findings of the study, even if it concludes that the proposal is not viable.
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