Crypto mining in the Czech Republic: taxes, VAT, trade licence and the law
Cryptocurrency mining is legal in the Czech Republic and you do not need a licence from the Czech National Bank (ČNB) to do it. According to the interpretation of the General Financial Directorate (GFŘ), income tax is not paid at the moment coins are mined, but only when you sell the mined coins or exchange them for goods, services or another cryptocurrency. Systematic mining for profit is a business activity (trade licence, Section 7 of the Income Tax Act), while occasional mining falls under other income (Section 10). VAT does not apply to mining itself.
Please note: this article is general information as of 18 Oct 2026, not tax or legal advice. Interpretations may change and every situation is different. Consult a tax adviser before filing a tax return or registering a trade licence.
Summary
- According to the GFŘ, mining a coin does not in itself create taxable income. Income arises when you sell for Czech koruna or exchange.
- Individuals: systematic mining = Section 7 (trade licence, social and health insurance), occasional mining = Section 10. The tax rate is 15%, rising to 23% above the statutory threshold (a tax base of CZK 1,762,812 for 2026).
- Companies: mined coins are own production valued at own cost, and tax is paid on the sale.
- Mining for your own account is outside the scope of VAT, so a VAT payer is not entitled to deduct VAT on the miner and electricity used for mining.
- The European MiCA regulation does not regulate mining. It covers exchanges, exchange offices, custody and issuers of crypto-assets.
Is mining legal in the Czech Republic?
Yes. No law prohibits mining or requires a special permit for it. The EU Markets in Crypto-Assets Regulation (MiCA) and the Czech Crypto-Assets Act regulate the issuance of crypto-assets and the services companies provide with them to other people – trading, exchange or custody. These are supervised by the ČNB.
Mining for your own needs is not one of these services. Be careful, however, if you start exchanging coins for other people or managing their funds – that may already be a regulated service.
In practical terms, the same rules apply as for any electrical appliance: observe circuit protection and electrical inspections, and don't disturb your neighbours with noise in a flat or house. A professional ASIC runs at around 75 dB, so it belongs in a data centre rather than at home.
How mining is taxed for individuals
The key question is whether you mine systematically, independently and for profit. If so, according to the GFŘ it is a business activity and the income falls under Section 7. If you only mine occasionally, for example one small miner at home for fun, it is other income under Section 10.
| Occasional mining | Systematic mining (business) | |
|---|---|---|
| Type of income | other income, Section 10 of the Income Tax Act (ZDP) | self-employment, Section 7 ZDP |
| When income arises | on sale or exchange of mined coins | on sale or exchange of mined coins |
| Expenses | only documented ones, up to the amount of income | actual expenses (electricity, depreciation, hosting), or a 60% flat rate with a trade licence |
| Trade licence | no | yes |
| Social and health insurance | no | yes, as a self-employed person (OSVČ) |
| Tax rate | 15%, 23% above the statutory threshold | 15%, 23% above the statutory threshold |
Since February 2025, an amendment to the Income Tax Act (Act No. 32/2025 Coll.) has been in force that exempts income from the sale of crypto-assets if you hold them for more than 3 years, or if your income from selling them does not exceed CZK 100,000 a year. Whether and how the exemption applies to mined coins depends on your situation – especially if you mine as an entrepreneur and hold the coins as business assets. That is exactly a question for a tax adviser.
How mining is taxed for companies
For a legal entity (s.r.o., a.s.), the GFŘ treats mining as own production. Mined coins are booked to inventory and valued at own cost, i.e. mainly electricity and depreciation of the miners. Taxable revenue only arises on the sale or exchange of the coins and is subject to corporate income tax at 21%.
Neither the holding-period test nor the CZK 100,000 limit applies to companies – they are intended only for individuals. A company can claim the costs of acquiring and operating miners, provided they are documented.
Is VAT payable on mining?
According to the GFŘ, mining for your own account is not subject to VAT because there is no recipient of the supply. Someone who only mines and exchanges the mined coins does not become a VAT payer as a result. Conversely, a VAT payer who mines alongside other activities cannot deduct VAT on the purchase of a miner or on the electricity used for mining. The exchange of cryptocurrency for conventional money itself is regarded by the Court of Justice of the EU (Hedqvist judgment, C-264/14) as a VAT-exempt supply.
The situation is different if you rent out mining power or hardware to someone else. That is a service subject to VAT.
Do you need a trade licence to mine?
If you mine systematically for profit, yes – it is a business activity and you need a trade licence (an unregulated trade). The trade licensing office will confirm the specific field when you register. Within 15 days you must also register for income tax with the tax office and, as a self-employed person, register with the Czech Social Security Administration and your health insurance company. Most of this can be handled in one go using the single registration form at the trade licensing office.
Anyone doing business without a licence will not avoid tax – the GFŘ treats them as an entrepreneur, and they can only claim the lower 40% flat-rate expense allowance. On top of that, they risk a fine from the trade licensing office.
What to keep records of so your tax return adds up
- Proof of purchase of the miner (invoice) – PC Praha issues invoices both with and without VAT.
- Electricity or hosting costs for each month.
- Every pool payout: date, amount and coin. Pools send payouts once a certain balance is reached, see pool payouts and minimum balance.
- Every sale or exchange: date, amount, exchange rate and the amount received in CZK.
- Exchange or wallet statements for the whole year – export them in January while they are still available.
If you mine in hosting abroad, the general rule is that a Czech tax resident is taxed in the Czech Republic on worldwide income. Placing a machine in a data centre in Norway or the USA does not in itself change that.
What next
Before you decide to mine as a business, calculate the real return after electricity in our mining investment calculator. When home mining pays off and when hosting is better is discussed in our article Crypto mining at home. To understand when mining actually creates income, our brief definition of cryptocurrency may also help.
Sources
Frequently asked questions
Do I have to pay tax on coins as soon as I mine them?
Do I need a licence from the Czech National Bank to mine?
Does the 3-year holding test also apply to mined coins?
Can I deduct VAT on the purchase of a miner?
My miner is hosted abroad. Where do I pay tax on the income?
This text was prepared with the help of AI. Facts, figures and procedures were checked by Yegor.
