Czech Republic

The Czech Republic has progressive personal income tax (PIT) rates (with two tax brackets applicable to almost all types of income) as follows:

• Basic tax rate of 15% for annual gross income up to 1,762,812 Czech koruna (CZK).
• Increased rate of 23% for annual gross income over CZK 1,762,812.

Certain types of capital income (such as dividends and interest income from bonds) are subject to the 15% tax rate.

As of 1 January 2026, the annual limit of CZK 40 million for exemption of income from the sale of securities (typically shares) and stakes in corporations, provided the time test is met, will be abolished. Thus, individuals will be able to obtain full exemption (provided the time test is met) from sales of these assets, regardless of the amount of income. The exception remains for cryptocurrencies, where the limit of CZK 40 million will continue to apply. For transactions closed in 2025 or for exempt income arising from them, the limit will still apply.