Daně a legislativa ČR
Taxes When Moving Abroad With a Portfolio
Key takeaways
- A Czech tax resident pays tax on worldwide income — this obligation changes upon moving abroad.
- The Czech Republic introduced a so-called exit tax — a tax on departure from tax residency with unrealised gains.
- A change of residency is complex and depends on double taxation treaties.
- Before moving abroad, have your situation assessed by a tax adviser.
Moving abroad is not just a logistical matter — it changes your tax residency, and with it the rules for taxing your entire investment portfolio. This is one of the most tax-complex situations a private investor can encounter.
What tax residency is and how it changes
A Czech tax resident is generally someone who has a permanent residence in the Czech Republic or stays there for more than 183 days a year. If you move abroad and satisfy the conditions for residency in another country, you will (under certain conditions) cease to be a Czech resident. From that point on, you stop paying Czech tax on worldwide income — you only pay tax on income from Czech sources. The specific rules depend on the double taxation treaty between the Czech Republic and the destination country.
Exit tax — tax on departure
The Czech Republic has introduced a so-called exit tax: if you are transferring assets or leaving tax residency, you may be obliged to tax unrealised gains as of the date of the change of residency — as if you had sold the assets on that day. This rule is relatively new and its application is complex. Always consult a tax adviser specialising in international taxation.
Typical scenarios
- Moving to the EU (Germany, the Netherlands, Austria): a double taxation treaty usually exists, but each has different rules for capital gains
- Moving to low-tax countries (UAE, Monaco): a popular strategy, but the Czech Republic may challenge the reality of the residency transfer — be careful about formal requirements
- Temporary stay abroad: if you retain permanent residence in the Czech Republic, Czech tax authorities may still consider you a resident
The principles of taxation for a Czech resident are analysed in the follow-up article Czech tax resident and worldwide investment income.
This article does not constitute tax advice. International taxation is an exceptionally complex field — always consult a specialist tax adviser. See also taxes on ETFs in the Czech Republic.
FAQ
Do I still have to pay Czech tax after moving abroad?
It depends on whether you have ceased to be a Czech tax resident. If so, you only pay Czech tax on income from Czech sources, not on worldwide income. The conditions for losing residency are complex — do not assume on your own.
What is exit tax and does it apply to me?
Exit tax is an obligation to pay tax on unrealised portfolio gains at the moment you cease to be a Czech tax resident. It is a relatively new and complex rule — you must consult a tax adviser specialising in international taxation.
How do I prove I am a tax resident in another country?
You will generally need a certificate of tax residence from the tax authority in the destination country, proof of permanent residence, and in some cases proof of 183 days of stay. Requirements differ from country to country.