When an individual sells securities or a business share in a limited company, the gain is taxed as other income — under § 8 in Slovakia and § 10 in the Czech Republic. But the two countries treat exemptions very differently. The Czech Republic exempts securities after a 3-year holding test (or below CZK 100,000 a year) and business shares after 5 years; Slovakia exempts only stock-exchange securities after one year and offers no holding-period exemption for a business share at all. Slovakia also levies health contributions on the gain, while the Czech Republic does not.
How does each country classify the income?
In both countries the sale of securities or a business share by an individual who does not hold them as business assets is “other income”. Slovakia places it under § 8 of Act No. 595/2003 Coll. (securities under § 8(1)(e), business shares under § 8(1)(f)); the Czech Republic under § 10 of Act No. 586/1992 Coll. In each case the taxable amount is the difference between the sale price and the acquisition cost, and a loss cannot be claimed.
The classification matters because it determines both the available exemptions and whether contributions apply. If you are selling as part of a larger deal, the transaction structure also matters — see our comparison of a share deal versus an asset deal from the seller’s perspective.
Selling securities: Slovak versus Czech exemptions
The Czech Republic is the more generous of the two. Securities are exempt if the total annual proceeds stay below CZK 100,000, or — regardless of amount — if the holding period exceeds three years. Slovakia’s exemption is narrower: only securities admitted to trading on a regulated market, held for more than one year and never used as business assets, are exempt (§ 9(1)(k)).
Slovakia also exempts the aggregate of certain § 8 income up to €500 a year, but this is a modest, shared threshold. The headline contrast is clear: a long-held, listed security is exempt after one year in Slovakia and three years in the Czech Republic, and the Czech rules additionally forgive small sales under CZK 100,000.
Selling a business share: a sharp difference
This is where the two systems diverge most. In the Czech Republic, the sale of a share in a limited company is exempt once the holding period exceeds five years. In Slovakia, there is no holding-period exemption for a business share — a once-approved three-year exemption was repealed before it ever took effect, so for 2026 the gain is always taxed above the €500 threshold.
For a Slovak seller this can be a costly surprise, especially on a large sale. From 2026 the Czech Republic also removed the former CZK 40 million cap on exempt proceeds from securities and shares (it now applies only to crypto-assets), so a Czech seller meeting the time test is exempt without any upper limit. Preparing early pays off either way — our guide to due diligence before selling a company explains what buyers scrutinise.
What tax rates apply in 2026?
Where the gain is taxable, the rates differ substantially. Slovakia applies a four-band progressive scale to its combined tax base: 19%, 25%, 30% and 35%, with thresholds at €43,983, €60,349 and €75,010. The Czech Republic applies 15%, rising to 23% on the part of the base above roughly CZK 1,762,812 (36 times the average wage) in 2026.
In both countries the gain is added to the taxpayer’s other income and taxed at the rate corresponding to the overall base. The Slovak scale reaches higher top rates, but the practical burden depends heavily on whether the gain is exempt in the first place.
What about health and social contributions?
This is the second major difference. In Slovakia, the taxable gain from selling securities or a business share is subject to health contributions — the 2026 rate is 16%, assessed by the health insurer in the annual reconciliation rather than in the tax return. In the Czech Republic, other income under § 10 is not subject to social or health insurance at all.
Exempt income escapes contributions in both countries, so a Slovak seller of long-held listed securities pays neither tax nor the levy. But where the Slovak gain is taxable, the 16% contribution can meaningfully raise the total burden — a factor Czech sellers simply do not face.
What should sellers check before a sale?
Before selling, confirm which regime applies: the holding period (one year for listed Slovak securities, three years for Czech securities, five years for a Czech business share — and no time exemption for a Slovak share), the relevant thresholds, and whether contributions will apply. Keep documentation of the acquisition cost, because without it you risk being taxed on the full proceeds.
Because the Slovak and Czech rules differ on exemptions, rates and contributions, they must never be mixed. A sale that is fully exempt on one side of the border may be fully taxable on the other, so the applicable law should be settled before the transaction, not after.
Selling securities or a business share in Slovakia or the Czech Republic and unsure whether the gain is exempt? We will assess the holding test, calculate the tax base and prepare your return.
FAQ
Is the sale of a business share tax-exempt after a holding period?
It depends on the country. In the Czech Republic a share in a limited company is exempt after a holding period exceeding five years. In Slovakia there is no holding-period exemption for a business share for 2026 — a planned three-year exemption was repealed before taking effect, so the gain is taxed above the €500 threshold.
When is the sale of securities exempt?
In the Czech Republic, securities are exempt below CZK 100,000 of annual proceeds, or after a holding period exceeding three years. In Slovakia, only securities admitted to trading on a regulated market, held for more than one year and not used as business assets, are exempt. Exempt income is free of both tax and contributions.
Do I pay insurance contributions on the gain?
In Slovakia, yes — the taxable gain from selling securities or a business share is subject to a 16% health contribution in 2026, assessed in the annual reconciliation. In the Czech Republic, other income under § 10 is not subject to social or health insurance, so only income tax applies.