Big news for investors and business owners in Czechia: From January 1, 2026, capital gains from the sale of companies or shares exceeding CZK 40 million will no longer be taxed — as long as the usual time test is met.
This reverses the controversial rule introduced in January 2025, which removed tax exemptions for high-value asset sales.
What’s Changing?
As of January 1, 2025, a new threshold was introduced: If you sold a company, shares, or cryptoassets for more than CZK 40 million, the capital gain was taxable — even if you met the standard time test (e.g., holding shares for more than 3 years).
This rule was meant to increase tax revenue and reduce loopholes in high-value transactions.
But starting January 2026, things are changing again.
What Will Apply from 2026?
Sales of companies and shares over CZK 40 million will no longer be taxed if the standard holding period (time test) is met.
The CZK 40 million limit will be completely removed for business ownership stakes and shares.
However, for cryptoassets, the 40 million cap will remain in place — sales above this amount will still be subject to income tax regardless of the holding period.
⚖️ Why Was the Original Rule Removed?
Although the 40 million cap was intended to boost state revenue, it did not have the desired effect. Wealthy taxpayers could easily work around it by:
Structuring deals in installments
Splitting transactions across multiple tax years
As a result, the added complexity and minimal fiscal return led to its repeal.
Need help navigating capital gains tax rules?
Whether you’re planning to sell your business, invest in crypto, or optimize your tax setup in Czechia — we are here to help.