Sale of securities, shares, and cryptocurrencies from 2026

24. 11. 2025

As of 2025 and 2026, several significant amendments to the Income Tax Act come into effect. Simultaneously, European regulations regarding the digitalization of the financial market and crypto-assets, primarily the MiCA Regulation, are being implemented into Czech law.

This article summarizes the tax regime for individuals – non-entrepreneurs regarding:

the sale (transfer for consideration) of securities,
the sale of a share in a business corporation,
the sale of crypto-assets,

focusing on the legal status in 2026.

1. Securities – Two Exemption Tests

The basic regulation for the tax exemption of income from the sale of securities is found in Section 4(1)(t) and (u) of the Income Tax Act (ITA). The exemption applies to income of individuals from securities acquired using private funds and not included in business assets.

1.1 Value Limit of CZK 100,000 (Section 4(1)(t) ITA)

Income from the sale of securities is exempt from tax if:

the total income from the sale of securities for the taxpayer does not exceed CZK 100,000 in a taxable period,
it does not involve income that is or was included in business assets within 3 years (5 years for registered certificates) after the termination of independent activity,
it does not involve income from capital assets (e.g., dividends).

The decisive factor is always the income (received sale price), not the profit (the difference between income and expenses).

1.2 Time Test of 3 Years (Section 4(1)(u) ITA)

If the CZK 100,000 limit is exceeded, each security is assessed individually according to the time test:

income from the sale of a specific security is exempt if the period between acquisition and sale exceeds 3 years,
for a registered certificate (kmenový list), the time test is 5 years,
the period is shortened by the time the security was held by the deceased (a direct relative or spouse) if acquired through inheritance,
the period is not interrupted by the merger of funds or the exchange of shares by the issuer for others of the same total nominal value.

The exemption does not apply if the security is or was included in business assets and the relevant period after the termination of business has not elapsed, or if it involves future transfers concluded before the time test expires. Furthermore, the exemption no longer applies to securities acquired through the exercise of a qualified employee stock option (Section 6a ITA).

If the exemption conditions are not met, the income from the sale of securities is taxed as other income under Section 10(1)(b)(2) ITA, taking into account tax-deductible expenses (acquisition price, fees, commissions, costs related to the sale).

2. Shares in Business Corporations – Time Test of 5 Years

The tax exemption for income from the sale of a share in a business corporation is governed by Section 4(1)(q) ITA. These are not securities (typically a share in a limited liability company, a limited partner's share, or a cooperative share).

Income from the sale of a share in a business corporation is exempt if:

the period between the acquisition and the sale of the share exceeds 5 years,
the share was not acquired from business assets (or a 5-year period has passed since the termination of activity), and it does not involve explicitly excluded situations (future transfers, increase in acquisition price via capital contribution, etc.),
additionally, the exemption does not apply to a share acquired through the exercise of a qualified employee stock option under Section 6a ITA.

If the exemption is not met, the income is taxed as other income under Section 10(1)(c) ITA. The tax expense is the acquisition price of the share according to Section 24(7) ITA (paid monetary contribution, value of non-monetary contribution, purchase price, or price according to the Valuation Act for free acquisition), or other expenses related to the transfer.

3. Crypto-assets – New Regime, MiCA, and Limits

Act No. 32/2025 Coll. added provisions regarding crypto-assets (Section 4(1)(zj) and (zk) ITA) to the Income Tax Act as of February 15, 2025, in connection with the European MiCA regulation. Simultaneously, a licensing regime and supervision under financial regulation are introduced for crypto-asset service providers (exchanges, wallets, custody, etc.), but this article focuses on personal income tax.

3.1 Value Limit of CZK 100,000 (Section 4(1)(zj) ITA)

The following are exempt from tax:

income from the sale of crypto-assets (with the exception of electronic money tokens – typically "stablecoins" pegged to a currency),
if the total of such income for the taxpayer does not exceed CZK 100,000 in a taxable period,
they are not crypto-assets that are or were included in business assets within 3 years after the termination of activity, and they do not involve income from capital assets.

3.2 Time Test of 3 Years (Section 4(1)(zk) ITA)

If the CZK 100,000 limit is exceeded, a time test applies similarly to securities:

income from the sale of a specific crypto-asset is exempt if the period between acquisition and sale exceeds 3 years,
the period is shortened by the holding time of the deceased (a direct relative or spouse) in case of inheritance,
the period is not interrupted by a merger of crypto-assets or the exchange of a crypto-asset by the issuer for another,
the exemption does not apply if the crypto-asset is in business assets (same logic as securities) or involves future transfers agreed upon before the 3-year period expires.

Crypto-assets whose transfer is not exempt are taxed as other income under Section 10 ITA (typically Section 10(1)(b) – other property), where the expense is the verifiable purchase price and related costs (exchange fees, transaction fees, etc.), only up to the amount of taxable income.

4. Limit of CZK 40,000,000 – As of 2026, Only for Crypto-assets

Originally (from January 1, 2025), Section 4(3) ITA introduced a combined limit of CZK 40 million for:

exempt income from the sale of shares in business corporations (Section 4(1)(q)),
exempt income from the sale of securities according to the time test (Section 4(1)(u)),
exempt income from the sale of crypto-assets according to the time test (Section 4(1)(zk)).

Act No. 360/2025 Coll. introduces a change effective from January 1, 2026:

the CZK 40,000,000 limit remains only for crypto-assets,
for securities and shares in business corporations, as of January 1, 2026, no maximum exemption limit is used – if the time test is met, the income is exempt without a cap,
for crypto-assets, if the total exempt income from their sale under Section 4(1)(zk) exceeds CZK 40 million, the portion above the limit is proportionally taxed under Section 10 ITA, including a proportional reduction of expenses.

5. Example 1 – Sale of Shares and Crypto-assets in 2026

Situation:

An individual (non-entrepreneur) sells the following in 2026:
Shares of Company A:
- purchase: February 2024, 1,000 units for CZK 300,000 (CZK 300/share),
- sale: March 2026, 1,000 units for CZK 420,000 (CZK 420/share),
- shares were never in business assets.
Crypto-asset (e.g., BTC):
- purchase: January 2023 for CZK 80,000,
- sale: March 2026 for CZK 140,000,
- not an electronic money token (not a stablecoin),
- crypto-asset was never in business assets.

5.1 Assessment of Shares

Total income from the sale of securities in 2026 = CZK 420,000 > CZK 100,000; the value limit under Section 4(1)(t) ITA is not met.
3-year time test (Section 4(1)(u) ITA):
- 3 years have not passed from February 2024 to March 2026,
- therefore, the income from the sale of shares is not exempt.

The income from the sale of shares in Company A in the amount of CZK 420,000 is taxed as other income under Section 10(1)(b)(2) ITA.

Partial tax base for shares (ignoring ancillary fees):

income: CZK 420,000,
expense – acquisition price: CZK 300,000,
partial tax base: CZK 120,000.

5.2 Assessment of Crypto-assets

Total income from the sale of crypto-assets in 2026: CZK 140,000.
The CZK 100,000 value limit under Section 4(1)(zj) ITA is exceeded (140,000 > 100,000), so the time test under letter (zk) applies.
3-year time test (Section 4(1)(zk) ITA):
- more than 3 years have passed from January 2023 to March 2026,
- the income from the sale of the crypto-asset is exempt.
The CZK 40 million limit for crypto-assets (Section 4(3) ITA) is completely irrelevant here – total exempt income of CZK 140,000 is well below the threshold.

Result of Example 1:

income from the sale of shares A: taxable, partial tax base approx. CZK 120,000,
income from the sale of crypto-assets: fully exempt, not reported in the tax return,
the CZK 40 million limit for crypto-assets does not apply.

6. Example 2 – High Income from Crypto-assets and the CZK 40M Limit in 2026

Situation:

An individual (non-entrepreneur) sells crypto-assets in 2026 (long-term investment outside of business):
- aggregate sale of several cryptocurrencies held for more than 3 years,
- total income from sales in 2026: CZK 45,000,000,
- total verifiable acquisition price (sum of purchase prices and fees): CZK 10,000,000,
- crypto-assets were never in business assets, not electronic money tokens (stablecoins).

6.1 Assessment of Exemption

Each crypto-asset meets the 3-year time test under Section 4(1)(zk) ITA, so they are essentially exempt.
However, the limit from Section 4(3) ITA must be considered:
- total exempt income from the transfer of crypto-assets = CZK 45,000,000,
- exemption limit = CZK 40,000,000,
- income portion over the limit = 45,000,000 – 40,000,000 = CZK 5,000,000.
Ratio of the over-limit part:
- 5,000,000 / 45,000,000 = 11.111… % (≈ 11.11%).
- This share of income is not exempt and enters the tax base.

6.2 Proportional Reduction of Expenses

According to Section 10(4) ITA, if income is partially exempt, expenses can only be claimed in the ratio in which the income is not exempt.

total expenses (acquisition prices + fees): CZK 10,000,000,
share of non-exempt income = 11.11%,
expenses attributable to the taxable portion: 10,000,000 × 5,000,000 / 45,000,000 = approx. CZK 1,111,111.

6.3 Calculation of the Partial Tax Base

non-exempt (entering the tax base) income from crypto-assets: CZK 5,000,000,
allowed expenses attributable to this part: approx. CZK 1,111,111,
partial tax base under Section 10 ITA: 5,000,000 – 1,111,111 ≈ CZK 3,888,889.

Result of Example 2:

out of CZK 45 million in income from long-term held crypto-assets, approx. CZK 40 million is exempt,
approx. CZK 3.89 million represents the taxable partial tax base after the proportional application of expenses,
in 2026, the CZK 40 million limit applies only to crypto-assets, not to securities or shares in business corporations.

7. Summary

Securities – exemption either:
- value limit of CZK 100,000 annually (Section 4(1)(t)), or
- time test of 3 years (Section 4(1)(u)),
- without the CZK 40 million cap as of January 1, 2026.
Shares in business corporations – exemption after 5 years of holding (Section 4(1)(q)), also without the CZK 40 million limit for 2026.
Crypto-assets – new rules:
- value limit of CZK 100,000 annually (Section 4(1)(zj)),
- time test of 3 years (Section 4(1)(zk)),
- from January 1, 2026, the CZK 40 million cap remains only for exempt income from crypto-assets; the portion over the limit is taxed proportionally.

In practice, it is therefore necessary for every sale of a security, share, or crypto-asset in 2026 to check the sequence of tests (CZK 100,000 limit, time test) and, for significant volumes of crypto-assets, also the aggregate limit of CZK 40 million for the taxable period.

Sources:

DREPORT - Current look at the new crypto-asset legislation (CZ) e_Bulletin KDP ČR, Ivan Macháček: Transfer of securities, shares, and crypto-assets for consideration in 2026 (CZ)