Daně a legislativa ČR
How to Tax Gains from Stocks and ETFs in the Czech Republic
Key takeaways
- Gains from selling securities are taxed at 15%, but can be exempted.
- Time test: if you hold for more than 3 years, the gain is exempt (from 2025 up to the CZK 40 million income cap).
- Value test: total sale proceeds up to CZK 100,000 per year — exempt.
- Dividends are always taxed at 15%; the time test does not apply to them.
- Always consult a tax advisor — rules change.
Gains from selling stocks and ETFs in the Czech Republic are subject to 15% income tax, but the law offers two paths to exemption: the time test and the value test. Which one helps you depends on how long you've held the securities and the size of your sales.
The time test: three years as the key
If you held the securities for more than 3 years, the gain from their sale is tax-exempt. Important: the holding period is measured for each individual purchase separately — using the FIFO (first in, first out) method. If you invested gradually (e.g. via DCA), each purchase has its own three-year clock.
From 2025, a CZK 40 million cap on annual sale proceeds applies. When this cap is exceeded, a portion of the gain is taxable — even if the three-year test was met. More in the article the CZK 40 million cap from 2025.
The value test: under CZK 100,000 with no tax
The second route: if total sale proceeds (note — the full sale amount, not just the gain) do not exceed CZK 100,000 per year, the gain is exempt. This test is advantageous for new investors with small positions. Details in value test CZK 100,000.
When to file a tax return
If you satisfy neither test and realize a taxable gain, you must file a tax return. Report the income under § 10 (other income). Tax base = proceeds − acquisition costs (purchase price, broker fees). If you have both gains and losses in the same year, losses can be offset against gains.
- Dividends are always taxed — the time test does not apply to them.
- Convert foreign amounts to CZK using the Ministry of Finance uniform rate or the CNB rate — we recommend verifying the current methodology.
- Accumulating ETFs pay no dividends; you are taxed only upon sale.
Where to find more
A detailed guide to investment taxation in the Czech Republic is available in taxes on ETFs in the Czech Republic. This article does not constitute tax advice — verify current rules or consult a tax advisor.
FAQ
How are ETF gains taxed in the Czech Republic?
At 15% on income. The gain can be exempted via the time test (holding > 3 years) or the value test (total sale proceeds up to CZK 100,000 per year). From 2025 a CZK 40 million cap applies to the time test.
Do I have to file a tax return if I satisfy the time test?
If all sale proceeds are exempt (you pass the time or value test), you do not need to file a return because of them. However, if you also realize a taxable gain, you must file.
Does the time test apply to dividends?
No. Dividends are always taxed at 15% regardless of holding period. The time test applies only to gains from selling securities.
What is the FIFO method when selling ETFs?
FIFO (first in, first out) means that when you sell, the oldest purchases are "sold" first. With regular investing, each purchase therefore has its own three-year clock for the time test.