Nikolas Sargeant
The Slovenian Finance Ministry has unveiled a draft law proposing a 25% tax on cryptocurrency profits for residents, significantly altering the country's approach to digital asset regulation. The proposal, published on April 17, remains open for public feedback until May 5.
Under the proposed legislation, the tax would apply when crypto assets are sold for fiat currency or used to purchase goods and services. The tax aims to create fairness in the financial system by treating cryptocurrency similarly to other investment vehicles.
Same-Owner Wallet Transfers Would Remain Tax-Exempt
The draft law includes important exemptions. Crypto-to-crypto transactions and transfers between wallets owned by the same individual would not trigger tax events. Taxpayers would need to track all transactions and report them in annual returns, with profits calculated by subtracting purchase price from sale price.
Finance Minister Klemen Boštjančič defended the proposal, stating: "The goal is not necessarily to increase revenue but to ensure fairness in the tax system. Crypto assets should not be treated differently from other forms of investment."
The draft has faced pushback from opposition lawmakers. Jernej Vrtovec of the New Slovenia party warned that "excessive taxation" could drive young talent and capital abroad, arguing that "taxes should encourage innovation, not suppress it."
If passed, the law would take effect January 1, 2026. Slovenia currently has a 10% tax on crypto withdrawals and payments, but casual trading profits remain untaxed unless considered business activity. Mining and staking profits already face income tax, while hobby-level activities are exempt.
Slovenia's Digital Finance Innovation Continues Despite Tax Proposals
Despite the new tax proposal, Slovenia maintains its position as a blockchain innovator. In 2023, Slovenia became the first EU member to issue a blockchain-based sovereign bond, with a 30 million euro note offering a 3.65% coupon settled through the Bank of France's tokenized cash system.
According to Statista, Slovenia is projected to have approximately 98,000 crypto users by 2025, representing 4.6% of its population, with market revenue expected to reach $2.8 million.
