How are cryptocurrencies taxed in 2025?

The rules for taxing cryptocurrencies differ depending on the type of entity – a natural person, an entrepreneur, or a legal entity. The law stipulates different tax rates, options for claiming expenses, as well as requirements for record-keeping and accounting. This overview provides a brief and clear summary of the most important rules.

‍

1. Natural person – non-entrepreneur

Income:

• Other income according to Sec. 8 (1) (t) of the Income Tax Act (ITA)
• Taxed within the Personal Income Tax Return Form B as income from the sale of cryptocurrencies

Tax rate:

• 19% up to a tax base of EUR 48,441.43
• 25% above this limit

Health insurance contributions:

• 15% of the assessment base
• Levied by the health insurance company after the tax return has been filed
• Can be deducted as an expense (in a subsequent period or through an additional tax return)

Expenses:

• Tax-deductible:
  • purchase price of the cryptocurrency
  • fees related to the purchase/sale
  • paid health insurance contributions
• Expenses can be claimed up to a maximum of the income amount
• If a loss is incurred, it is not tax-deductible

‍

2. Natural person – entrepreneur (sole trader)

Income:

• Income from business activities according to Sec. 6 (1) and (2) of the ITA
• Cryptocurrencies are part of business assets
• Profit is declared in the PIT Return Form B

Tax rate:

• 15% for taxable income up to EUR 100,000
• 19% up to a tax base of EUR 48,441.43
• 25% above this limit

Contributions:

• Mandatory health and social insurance

Expenses:

• Options:
  • Actual demonstrable expenses
  • Lump-sum expenses of 60% of income (max. EUR 20,000) + contributions
• Demonstrably incurred expenses include:
  • purchase price of the cryptocurrency
  • fees on purchase/sale
  • paid insurance contributions
  • depreciation of assets included in business assets
  • costs of technical equipment (e.g., computers, servers, energy)
  • rent and related costs

‍

3. Company (e.g., s.r.o.)

Taxation: according to Sec. 12 et seq. of the ITA, the Corporate income tax rate:

• 10% for income up to EUR 100,000
• 21% from EUR 100,000 to 5 mil. EUR
• 24% above 5 mil. EUR

Dividends: 7% withholding tax upon payment to a natural person. Accounting: Double-entry bookkeeping Records: Obligation to keep records of crypto-assets as part of assets or inventory

Calculation of the tax base

• Tax base = income from transaction – purchase price – transaction fee
• Profit = total income – total acquisition costs
• Total income – all revenues from the sale or exchange of cryptocurrencies in the given year
• Total acquisition costs – the purchase prices of the cryptocurrencies sold/exchanged

‍

‍

We recommend:

• to keep thorough records of all transactions and related costs,
• to carefully consider the most suitable form of business from a tax perspective,
• to regularly consult with an expert on tax obligations and legislative changes.