Daně a legislativa ČR
Tax return for investors for the year 2027: a practical guide
Key takeaways
- Dividends from ETFs are always taxed at 15% — the holding-period test does not apply to dividends.
- Capital gains may be exempt either after 3 years of holding (time test) or when proceeds from sales do not exceed CZK 100,000 per year (value test).
- Since 2025 a ceiling of CZK 40 million applies to the time-test exemption — proceeds above that threshold are taxed even if the holding period is met.
- Foreign income must be converted to CZK using the CNB exchange rate — consistently for the whole year.
- The standard filing deadline is 1 April 2028; with a tax advisor or data box it is 1 July 2028.
Who must file a tax return
If in 2027 you received dividends from foreign ETFs or realised a gain from selling securities, you most likely have a tax obligation. The obligation to file a return applies if your income from these sources exceeded the statutory threshold or if you are unable to apply a complete exemption. Verify the exact conditions on the Financial Administration website or with a tax advisor — this article is an informational overview, not tax advice.
Dividends: always taxable, the time test does not apply
Dividends from ETFs are taxed at 15% regardless of how long you have held the ETF. The holding-period test does not apply to dividends — they are taxable every time. For distributing ETFs or funds that pay dividends, foreign withholding tax (typically 15% from the US via Ireland) is set off — the Czech Republic has a double-taxation treaty with most countries. The resulting income is reported in the return in Czech crowns converted at the CNB rate.
Gains from sales: the time test and the value test
Capital gains from selling ETFs or other securities may be exempt from tax if you satisfy one of two tests:
- Time test: more than 3 years elapsed between purchase and sale. If so, the gain is exempt regardless of amount.
- Value test: the total proceeds (not the gain, but the gross proceeds from sales) from all securities sold in 2027 did not exceed CZK 100,000. If so, the gain is exempt.
If you satisfy neither test, you are taxed on the gain at 15% (for individuals). Since 2025 a ceiling of CZK 40 million applies to the time-test exemption — proceeds above this threshold are taxed even if the holding period is met. A more detailed explanation of the whole system is available in taxes on ETFs in the Czech Republic.
Deadlines and practical steps
The standard deadline for filing a personal income tax return is 1 April 2028. Filing via a data box or through a tax advisor extends the deadline to 1 July 2028. Always verify current deadlines on the Financial Administration website — deadlines may differ or be postponed.
What to prepare before filing
- A statement from your brokerage account with all transactions for 2027.
- The purchase and sale date of each position (for the time test).
- Foreign withholding taxes paid (for the credit).
- CNB exchange rates on the dates of individual transactions.
This is an informational overview. We recommend consulting your specific situation with a tax advisor, especially if you have foreign income from multiple countries or a more complex portfolio. For a basic orientation in the system we recommend taxes on ETFs in the Czech Republic.
FAQ
Do I have to pay tax on dividends from an accumulating ETF?
An accumulating ETF does not distribute dividends — it reinvests them inside the fund. No taxable dividend income therefore arises. Tax is handled at the point of sale (capital gain).
What is the value test and how do I apply it?
If the total gross proceeds from selling securities in a given year did not exceed CZK 100,000, the gain is exempt from tax. You include it in the return but as exempt income.
How does the credit for foreign withholding tax work?
If you paid withholding tax abroad on a dividend, it can be credited against your Czech tax liability under a double-taxation treaty. The details depend on the specific country — verify with an advisor.
Where can I find the exact current deadlines and forms?
On the website of the Czech Financial Administration (financnisprava.cz). Deadlines occasionally change; always verify current information directly with the tax authority.