Czechia · Tax regime
Czech Capital Gains Exemption and Personal Tax Regime
The picture improves materially from 1 January 2026. A CZK 40,000,000 annual cap on the capital gains exemption took effect on 1 January 2025. It was repealed with effect from 1 January 2026 for securities and corporate shares. Once the holding period is met, the exemption reverts to being uncapped. The cap remains in place for crypto-assets.
The single most valuable fact here is also the least known. Czech CFC rules do not apply to individuals. A foreign company held solely by a Czech-resident individual falls outside them entirely. That is the opposite of Poland, where CFC rules gut the flat-tax regime. Combine that with an uncapped capital gains tax 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 family whose wealth sits in securities.
Qualifying routes
Gains are fully exempt and uncapped from 1 January 2026.
Not represented by a security. Gains are fully exempt and uncapped from 1 January 2026.
Sale of securities is exempt regardless of holding period, as long as gross income is CZK 100,000 or less in the tax period.
The facts
- Total landed cost
- Not applicable. This is a regime, not a purchase.
- Route type
- Tax regime, not a visa
- Timeline
- 3–5 years (The binding constraint is the holding period, 3-year for securities or 5-year for corporate shares.)
- Physical presence
- Czech tax residency, established by 183 days or a permanent home.
- Family
- Individuals are taxed separately
- Permanent residency
- Not applicable
- Citizenship
- Not applicable
- Language test
- Not applicable
- 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. You need 3 years for securities and 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. It treats a transfer of assets abroad without a change of ownership as a deemed arm's-length disposal.
- 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. 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.