Slovenia Moves to Impose 25% Crypto Tax On Sales Profits, Effective 2026

Slovenias proposed 25% crypto tax targets capital gains from fiat exchanges.
Crypto-to-crypto transactions and wallet transfers will remain exempt.
The proposal could generate up to 25 million annually for Slovenia.

Slovenias Finance Ministry has proposed a 25% tax on crypto profits such as capital gains crypto sales. The proposal, which is has been opened for public participation, seeks to balance crypto taxation and capital investment taxes. The proposed legislation imposes a tax on crypto-to-fiat conversions or when individuals use crypto to pay for goods and services.

The proposed tax exempts crypto-to-crypto transactions and crypto transfer between wallets that belong to one person. This means that crypto to crypto transactions will not be taxed under the proposed tax which provides relief to active traders. Moreover, investors must report their annual crypto transactions and calculate profits based on the difference between sales and purchases, excluding transaction costs.

Crypto Tax Proposal Sparks Mixed Reactions

Finance Minister Klemen Bostjani stressed that crypto taxation is important to ensure a fair tax system in Slovenia. He stated that such speculative financial instruments should not remain outside the tax system. The Slovenian Ministry claims that the crypto tax is not intended for generation of revenue but rather to create similar taxation rules on crypto transactions and capital investments.

However, the proposal has received skepticism and opposition from various politicians. Jernej Vrtovec, a member of the New Slovenia party, cautioned that the tax could hinder crypto market growth in Slovenia. He explained that the high taxation could force young people and capital to relocate to favourable jurisdictions abroad which could limit Slovenias potential as a crypto hub.

If approved, the law would be effective from January 1, 2026 which provides sufficient transition time to crypto users. The proposal is available for public participation until May 5th 2025 and could be amended based on the feedback. Slovenias tax system currently imposes a 10% tax on crypto withdrawals and payments but does not tax capital gains from crypto trading.

Crypto Tax Implications on Slovenias Crypto Market

The Ministry of Finance estimates that the new tax could produce between 2.5 million and 25 million in tax each year. However, the values based on initial calculations could differ from the actual amount. Slovenia, which boasts the most crypto owners in the Eurozone, has seen increased interest in digital assets with 15% of its adult population owning crypto assets in 2023.

The proposed tax could change the countrys anticipated $2.8 million crypto market value in 2025. Although the proposed taxation could benefit the Slovenian tax structure, it could slow Slovenias crypto market growth. The government continues to hold discussions on the impact of the proposed taxation on crypto growth.

Text source: TronWeekly

News