Czech Republic signs law removing Bitcoin tax for long-term holders

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The President of the Czech Republic, Peter Paville. Photo: AFP

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The Czech Republic will exempt Bitcoin from the capital of capital gains if it is held for more than three years.
The new legislation is compatible with Czech encryption regulations with the European Union MICA framework starting in mid -2015.

The Czech Republic will exempt bitcoin and other digital assets from the capital profit tax for property that exceeds three years, after President Peter Paville signed new legislation that is compatible with encryption taxes with traditional securities.

🇨🇿 The Czech president signs the law that cancels the capital profit tax on #Bitcoin I held more than 3 years

A huge victory for the Czech Republic 🚀 pic.twitter.com/lsvim0jdze

Bitcoin (Thebitcoinconf) Conference February 6, 2025

The law removes the tax defects of digital assets by providing an exemption from individual income tax on encryption profits after a three -year contract. The exemption applies only to non -commercial activities.

“The amendment will come into effect in the middle of 2025,” align the regulations of the Czech Republic with the framework of the European Union in the encrypted buttons (MICA).

The legislation, which was approved by the House of Representatives in January, puts digital currencies equally with traditional financial tools.

Under the new rules, encryption holders who sell their assets will not be required after a specified three -year period to pay the income tax on profits.

The law represents part of the broader changes aimed at updating the tax regulations in the Czech Republic, especially with regard to emerging technologies and financial innovations.

Last month, the Czech National Bank looked at Bitcoin’s incorporation into foreign exchange reserves as a diversification strategy.

It is an official

The Czech central bank plans

(Bloomberg) pic.twitter.com/6gqcxn954z

– Willem Middelkoop (Widdelkoop) January 29, 2025

This step puts the country as an environment in support of bitcoin within the European Union, which may affect the decisions of the policy of other member states.