Czech Republic Capital Gains Tax Guide
Czech Republic has a favourable capital gains tax regime — gains from securities are exempt after a 3-year holding period (časový test), and property gains are exempt after 5 years (or 2 years if used as permanent residence). Gains realised within the time test period are taxed as ordinary income at 15% (or 23% for high earners). The exemption also applies to shares in s.r.o. companies after 3 years. All amounts in CZK.
Czech capital gains taxation is integrated into the personal income tax system — there is no separate capital gains tax. Gains are treated as other income (ostatní příjmy) under the Income Tax Act unless exempted by the time test. For related guidance, see our Personal Tax Guide →, Investment Income Guide →, and Property Tax Guide →.
Securities — 3-Year Time Test (Časový test u cenných papírů)
- Exemption: Gains from the sale of securities (cenné papíry) are exempt from income tax if the seller has held the securities for at least 3 years before the sale. This applies to: listed stocks (akcie), bonds (dluhopisy), investment certificates, shares in funds (podílové listy), and other investment instruments.
- No time test for securities? The 3-year test applies to securities — there is no unlimited exemption. If securities are held for 3 years or more, the gain is completely tax-free. If held for less than 3 years, the gain is taxable.
- Calculation of holding period: The period runs from the date of acquisition (den nabytí) to the date of sale (den úplatného převodu). For securities acquired at different times (e.g., through multiple purchases), the FIFO method (first-in, first-out) is used to determine which securities are sold and their holding period.
- Shares in s.r.o. (podíl v s.r.o.): The same 3-year time test applies to the sale of a share in a limited liability company (s.r.o.). If held for at least 3 years, the gain is tax-free. This is a common structuring tool for business exits.
Property — 5-Year Time Test
- Residential property: Gains from the sale of residential property are exempt after a 5-year holding period. This includes flats, houses, and land that forms part of the property.
- 2-year exemption (permanent residence): If the seller used the property as their permanent residence (trvalé bydliště) for at least 2 years immediately before the sale, the gain is exempt regardless of the total holding period. This exemption applies to the seller's primary residence and can be claimed once every 2 years.
- Commercial property: A 5-year time test also applies to commercial/industrial property held by individuals. Companies do not benefit from the time test — corporate taxpayers pay corporate tax (19%) on all property gains as part of their ordinary income.
- Land: Gains from the sale of undeveloped land are not subject to a specific time test exemption unless the land is part of a residential property sale. Gains from land held for investment are generally taxable unless the 3-year securities test applies indirectly through a corporate structure.
Taxation Within the Time Test
- Rate: Gains realised within the time test period (i.e., holding period shorter than the exemption threshold) are taxed as other income (ostatní příjmy) under Section 10 of the Income Tax Act. The gain is added to the taxpayer's other income and taxed at the marginal rate: 15% for most taxpayers, or 23% if total income including the gain exceeds the solidarity surcharge threshold (approximately CZK 1,935,552 in 2025).
- Calculation: The gain is the sale price minus the acquisition cost (including brokerage fees, legal costs, and other acquisition-related expenses). For inherited property, the acquisition cost is the market value at the date of death (valorisation possible for inheritance tax purposes).
- Loss offsetting: Capital losses on securities or property can be offset against capital gains of the same type in the same tax year. Losses cannot be carried forward to future years, except for losses from securities trading (which can be carried forward up to 5 years under certain conditions).
Other Assets
- Cryptocurrency: Gains from crypto trading are generally treated as other income under Section 10 and taxed at 15%/23%. There is no specific time test exemption for cryptocurrency — each disposal is a taxable event unless the crypto qualifies as a security (cenný papír) under Czech law and the 3-year test applies. The tax treatment of crypto remains an evolving area; see our Investment Income Guide → for more detail.
- Precious metals and collectibles: Gains from gold, silver, art, and collectibles are treated as other income and taxed at 15%/23%. There is no time test exemption for physical assets (unless held as part of a business inventory).