Slovenia has proposed a 25% tax on crypto profits starting in 2026, aiming to bring regulatory clarity and to align with international standards.
New Draft Law Targets Crypto Profits
Slovenia is preparing to overhaul its crypto taxation framework with a proposed 25% capital gains tax on digital asset profits. The Finance Ministry released a pair of legislative proposals on April 17, aimed at regulating crypto assets and derivatives, with implementation planned for January 1, 2026.
The move follows a 2023 measure that imposed a 10% tax on cryptocurrency withdrawals. If enacted, the new law will significantly expand the scope of taxation, applying to profits from crypto-to-fiat transactions and purchases made with digital assets.
Scope of the Tax
The proposed Law on the Tax on Profit from the Disposal of Crypto Assets would apply to Slovenian residents who profit from selling cryptocurrency for fiat (e.g., euros, dollars), using crypto to pay for goods or services, and transferring crypto to wallets not owned by the same individual (including gifts and payments).
However, certain activities will remain tax-exempt:, like crypto-to-crypto trades (e.g., Bitcoin to Ethereum), transfers between wallets held by the same user, and passive holding of digital assets without spending or selling, The taxable profit will be calculated as the difference between the acquisition cost and disposal value of crypto assets within a calendar year. Taxpayers will be required to maintain and, if requested, provide transaction records to tax authorities.
Optional Simplified Reporting Mechanism
To ease the compliance burden, the draft law includes a one-time simplified taxation option. Taxpayers may choose to pay tax on 40% of the total value of their crypto holdings as of December 31, 2025, plus the value of any disposals from 2020 to 2025.
This optional provision is designed to streamline historical reporting and encourage voluntary compliance ahead of the new tax’s rollout.
Regulatory Alignment and Public Reaction
The Finance Ministry said the legislation aims to improve transparency and bring Slovenia in line with global regulatory norms for digital assets. Finance Minister Klemen Boštjančič defended the move, stating:
“The goal of taxation of crypto assets is not to generate tax revenue, but we find it illogical and unreasonable that one of the most speculative financial instruments is not taxed at all.”
However, the proposal has sparked criticism from opposition lawmakers. Jernej Vrtovec of the New Slovenia party warned that the measure could drive capital and talent abroad:
“Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again…With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle.”
Economic Impact and Market Outlook
Slovenia’s crypto sector is expanding, with an estimated 98,000 users expected by 2025. The market is projected to generate $2.8 million in revenue, and the government anticipates the new tax could bring in between €2.5 million and €25 million annually, depending on trading activity.
The proposals are currently open for public consultation, marking a critical phase in shaping the country’s digital asset tax policy before the planned 2026 implementation.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.