Czech Republic 2025: New Psychomodulatory Substances Law and 1% THC Retail—What It Means for CBD Brands

Overview: Czech Cannabis Regulation 2025

Czechia is pioneering a unique regulatory pathway for cannabis and other so-called "psychomodulatory substances" in 2025. Effective July 1, 2025, the country’s Psychomodulatory Substances Act will allow the licensed sale of low-THC cannabis (up to 1% THC) and other substances like kratom through a strictly regulated, adult-use retail model [source, source]. If your brand operates in CBD or new cannabinoid spaces, this policy sets a new standard for legal compliance—and competitive opportunity—within the European Union (EU).

What’s Changing in Czech Cannabis Law for 2025?

Formerly one of the EU’s most tolerant gray markets for CBD, Czechia now classifies low-risk cannabinoids and related substances in a new, distinct category. This allows for:

• Retail sales of cannabis with up to 1% THC (the highest threshold in the EU for general commerce)
• Licensed, age-restricted distribution (18+ only, with POS controls)
• Extensive marketing, packaging, and labeling rules (comparable to alcohol/tobacco)
• Specific restrictions to separate psychomodulatory substances from narcotics (see below)
• Mandatory track-and-trace, consumer warnings, and display location restrictions

Licensing and Retail: Who Can Sell and How?

Licensing Requirements & Timelines

Under the 2025 framework:

• Businesses handling psychomodulatory substances—including low-THC cannabis—must obtain a permit from the Czech Ministry of Health [source].
• License applications opened in Spring 2025, with the first compliant retail operations expected by mid-summer.
• The annual licensing fee reportedly approaches €8,000 for cannabis-focused businesses [source].

Key License Types:

• Retail sales permit: Required for physical storefronts.
• Manufacturing/processing license: For preparing products for market (including extraction, blending, and packaging).
• Import/export endorsement: Limited, as cross-border EU trade remains subject to EU-level rules (see e-commerce section below).

Who Can Purchase?

• Sales are strictly 18+ only, with electronic age verification at point of sale.
• Purchases may be limited per person per day. As of the July 2025 rollout, quantitative limits for consumers may be clarified through secondary regulation, but the spirit is to prevent stockpiling/diversion.
• Online sales to the Czech market require the same POS controls as in retail.

Compliance Obligations for CBD and Cannabis Brands

Packaging, Labeling, and Advertising Rules

Expect compliance demands on par with tobacco, alcohol, and medicinal product regulation:

• Packaging must not resemble candy, toys, food, or appeal to youth.
• All labeling must be in Czech.
• Potency (THC and other actives) must be clearly disclosed on every retail product [source].
• Warning labels about responsible use, potential impairment, and the 18+ age limit are mandatory.
• Absolute prohibition on health claims, therapeutic suggestions, or misleading descriptors.
• Advertising and sponsorship for psychomodulatory substances is prohibited, both online and offline.

Product Safety and Track-and-Trace

• Each batch must be accompanied by verified supply chain documentation and a valid certificate of analysis.
• Track-and-trace systems will monitor movement from production through retail channels to mitigate diversion and illicit supply.

Point-of-Sale and Display

• Retailers must ensure products are not displayed near minors or in view from the street—think behind-the-counter or dedicated, age-restricted zones.
• Digital POS must implement robust, auditable age-gating.

How Does Czech Law Treat Ingestibles and Other Novel Foods?

While topical and cosmetic CBD products are generally green-lit for retail under Czech law, ingestible CBD (gum, edibles, tinctures, etc.) continues to face EU-level Novel Food restrictions. This includes:

• EU-wide enforcement of Novel Food Rules: For ingestible CBD, products require pre-market authorization, which is not yet broadly available. This means:
• Many ingestible CBD products remain effectively prohibited for commercial sale.
• Brands must segregate SKUs for topicals and cosmetics (compliant locally) from ingestibles (restricted or not marketable).
• Brands attempting cross-border e-commerce must reconcile Czech allowances with stricter laws in other EU states; failure to do so may risk enforcement or loss of goods/capital at customs.

Enforcement, Testing and Penalties

Criminal and Civil Sanctions

• Illicit sale (without license, to minors, or outside the 1% THC range) is subject to significant fines and potential criminal prosecution. The 2025 criminal code reforms are expected to prioritize regulatory penalties for minor infractions—but criminal sanctions remain for intentional breaches and diversion.
• Unlicensed operators and "gray market" outlets are expected to be targeted once compliant retail options are widespread from Summer 2025 onward.

Ongoing Testing

• Frequent, randomized testing at the retail and production level ensures products stay within the 1% THC threshold.
• Brands and retailers must retain testing documentation and make it available upon audit.

EU Context: Czech Rules, European Friction, and Cross-Border Distribution

EU–Czech Dynamics: What’s Unique?

• The 1% THC threshold is currently the highest in the EU for over-the-counter sale. Many member states (like Germany and France) cap allowable THC content in retail cannabis at 0.2–0.3%.
• Thus, selling Czech-compliant products elsewhere in the EU is risky unless they also meet the receiving country’s rules.
• Imported CBD ingredients and finished goods for Czech retail must be documented and must not contain narcotics (as defined by Czech and EU law).

E-Commerce and Cross-Border B2B/B2C

• Domestic Czech e-commerce is authorized for compliant (non-ingestible) SKUs.
• EU-wide e-commerce remains restricted due to inconsistent Novel Food enforcement and diverging national laws. Brands looking to use Czechia as an EU distribution hub need robust, country-by-country legal reviews and supply chain tracking.

Key Takeaways for Brands and Investors

1. Czechia’s 2025 cannabis law establishes the region's most progressive framework for low-risk cannabinoids.
2. Czech-language labeling, full ingredient and potency disclosure, and POS age controls are non-negotiable.
3. No health claims or youth-oriented marketing; product presentation must parallel tobacco and alcohol restrictions.
4. Licensed, auditable supply chains and regular third-party testing are required for all operators.
5. Domestic compliance may serve as a launchpad for EU expansion—but only with careful SKU and regulatory management.

Next Steps for Cannabis Operators

• Audit your product line. Segregate compliant SKUs (topicals, cosmetics) from restricted (ingestible) formats.
• Prepare Czech-specific labels and legal warnings.
• Consult local legal counsel and compliance resources—regulation remains dynamic, with secondary rules and enforcement guidance expected through late 2025.
• Use CannabisRegulations.ai to track updates and ensure you’re ready to operate ethically and profitably in Europe’s most innovative cannabis compliance environment.