TLDR
- Slovenia’s Finance Ministry proposed a 25% tax on crypto trading profits to be implemented from January 1, 2026
- Crypto-to-crypto exchanges and wallet transfers between the same owner would be exempt from taxation
- The tax would apply when crypto is converted to fiat or used to purchase goods/services
- Opposition lawmaker Jernej Vrtovec criticized the proposal, arguing it could stifle crypto growth in Slovenia
- The draft legislation is open for public consultation until May 5, 2025
Slovenia’s Finance Ministry has unveiled a draft law proposing a 25% tax on cryptocurrency trading profits for residents, aiming to align digital asset taxation with traditional investment instruments.
The proposal, released on April 17, would tax traders when they sell cryptocurrency for fiat currency or use it to pay for goods and services.
Currently, individual crypto investors in Slovenia enjoy a tax-free environment for their trading activities. Business-related crypto activities like mining or staking are already subject to income tax, but capital gains from personal crypto trading remain untaxed under existing laws.
Finance Minister Klemen Boštjančič defended the proposal, stating it’s “illogical and unreasonable” that highly speculative financial instruments aren’t taxed at all. He emphasized that generating tax revenue isn’t the primary goal of the new legislation.
Key Exemptions and Timeline
The draft legislation includes several key exemptions. Crypto-to-crypto exchanges would remain untaxed, acknowledging the technical complexity of taxing such transactions. Transfers between wallets owned by the same user would also be exempt.
Security tokens, central bank digital currencies (CBDCs), electronic money tokens, and non-fungible tokens (NFTs) would be excluded from the taxable asset pool. This aligns with definitions established under the EU’s Markets in Crypto Assets (MiCA) regulation and the OECD’s Crypto-Asset Reporting Framework.
If passed by Slovenian lawmakers, the new tax would take effect on January 1, 2026. Slovenian taxpayers would be required to file annual crypto tax returns by March 31, 2027, for the 2026 tax year.
Record-Keeping Requirements
Under the proposed law, crypto investors would need to maintain detailed records of all their transactions for annual tax filings. The tax base would be calculated on profits by subtracting the purchase price from the sale price.
Merchants accepting more than €500 in crypto payments would also face reporting obligations for those transactions. This aims to ensure enforceability and transparency in the new tax framework.
To simplify the transition, the legislation includes a “reset provision” that values all crypto holdings as of January 1, 2026, at their fair market price. This effectively eliminates disputes over acquisition cost basis for long-held assets.
Opposition and Industry Concerns
The proposal has already faced criticism from some lawmakers. Jernej Vrtovec, a member of Slovenia’s national assembly and the New Slovenia opposition party, expressed concerns that the tax could drive young people and capital out of the country.
“Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again,” Vrtovec stated on social media. “With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle.”
Economic Impact and Revenue Projections
Government estimates suggest the tax reform could generate between €2.5 million and €25 million annually for the national budget, depending on crypto market activity and compliance levels.
The number of crypto users in Slovenia is projected to reach approximately 98,000 in 2025, according to data platform Statista. This represents a penetration rate of 4.6% among its population of 2.12 million people. The projected revenue for the country’s crypto market is expected to hit $2.8 million.
Simplified Calculation Option
The draft includes an optional simplified calculation method to ease compliance burdens. Taxpayers can elect to pay tax on 40% of the combined value of all crypto holdings as of December 31, 2025, plus the value of any disposals in the preceding five years.
This one-time option covers activity going back to 2020, providing a streamlined approach for long-term investors who might not have maintained detailed records.
Public Consultation Period
The Ministry of Finance is currently accepting public comments on the proposal until May 5, 2025. Parliamentary debate is expected in the second half of the year.
If passed, Slovenia would join other European countries like Germany, France, and the Netherlands that have recently refined their crypto taxation policies. The move represents part of a broader effort to adapt Slovenia’s fiscal framework to the realities of a digital economy.
The proposal comes after Slovenia made history in the European Union by issuing the first digital sovereign bond on July 25, 2024. The bond had a nominal size of 30 million euros with a 3.65% coupon and matured on November 25 of the same year.
