Czech Republic
Individual - Significant developments
Last reviewed - 09 February 2024Czech Republic has a progressive personal income tax 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 ca 1.5 million Czech Koruna (CZK).
- Increased rate of 23% for annual gross income over ca CZK 1.5 million.
Certain types of capital income (such as dividends and interest income from bonds) is subject to 15% tax rate.
An important change that will come into effect from 1 January 2025 is limitation for tax exemption of capital gains from sale of shares in companies. Until the end of 2024, a full tax exemption of capital gains from sale of shares is available to individuals, if the individual owned the shares for a period exceeding 3 years for shares having the form of securities, and 5 years for shares in other companies. From 2025, the maximum annual amount of income (i.e. the sales price of the shares) that can be tax exempt will be limited to CZK 40 million.