TLDR:
- Slovenia’s Finance Ministry has proposed a 25% tax on cryptocurrency trading profits
- The tax would apply to crypto-to-fiat conversions and purchases, but not crypto-to-crypto trades
- If approved, the new tax law would take effect January 1, 2026
- Opposition lawmakers warn the tax could drive crypto innovation away from Slovenia
- The draft legislation aligns with EU and OECD regulatory frameworks
Slovenia’s Finance Ministry has introduced a draft law proposing a 25% tax on cryptocurrency trading profits for residents. The proposal, now open for public consultation until May 5, aims to align the tax treatment of digital assets with traditional investment instruments like stocks and bonds.
Under the current system, Slovenian individuals can trade cryptocurrencies without paying taxes on their profits, creating what Finance Minister Klemen Boštjančič described as an “illogical” situation. While businesses already face taxation on crypto income, individual investors operate in a legal gray area that allows them to pocket gains tax-free.
“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,” Boštjančič stated.
Key Exemptions in the Tax Proposal
The proposed legislation would tax crypto holders when they convert their digital assets to traditional currencies or use them to purchase goods and services. However, several key exemptions are included in the draft law.
Crypto-to-crypto exchanges, such as swapping Bitcoin for Ethereum, would remain untaxed. Transfers between wallets owned by the same user would also be exempt from taxation.
The draft draws from definitions established in the EU’s Markets in Crypto Assets (MiCA) regulation and the OECD’s Crypto-Asset Reporting Framework. It specifically excludes security tokens, central bank digital currencies, electronic money tokens, and non-fungible tokens (NFTs) from the taxable asset pool.
To ease the transition, the law includes a “reset provision” that values all crypto holdings as of January 1, 2026, at their fair market price. This prevents retroactive taxation and simplifies the calculation of capital gains for long-held assets.
Potential Impact on Slovenia’s Crypto Ecosystem
The proposal has sparked debate within Slovenia’s growing crypto community. Government estimates suggest the tax could generate between €2.5 million and €25 million annually for the national treasury, depending on market activity and compliance levels.
Jernej Vrtovec, a member of Slovenia’s national assembly representing the New Slovenia opposition party, has criticized the proposal. He argues that the tax could drive young talent 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 posted on social media. “With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle.”
Spet brez občutka! Slovenija ima priložnost postati kripto prijazna država, ampak z vladnimi predlogi bomo spet zamudili vlak.
S previsoko obdavčitvijo bomo spet gledali, kako mladi in kapital bežijo v tujino. Davki naj spodbujajo, ne dušijo! https://t.co/dN1fOEcSuU— Jernej Vrtovec (@JernejVrtovec) April 17, 2025
Implementation Timeline and Requirements
If passed by Slovenian lawmakers, the new tax regime would take effect on January 1, 2026. Taxpayers would be required to file annual crypto tax returns by March 31, beginning in 2027 for the 2026 tax year.
The legislation would require individuals to maintain detailed records of all transactions for annual tax returns. The tax base would be calculated by subtracting the purchase price from the sale price to determine profits.
Merchants accepting over €500 in crypto payments would be obligated to report those transactions to tax authorities.
Slovenia already introduced a 10% tax on crypto withdrawals and payments in 2023, but capital gains from occasional crypto trading remain untaxed. A previous bill proposed in April 2022 planned to levy a 5% tax on profits over €10,000, but it was never enacted.
The number of crypto users in Slovenia is projected to reach approximately 98,000 in 2025, representing a penetration rate of 4.6% among its population of 2.12 million people. The country’s crypto market revenue is expected to hit $2.8 million.
Slovenia has shown interest in blockchain technology at the government level. In July last year, it issued the first digital sovereign bond in the European Union, with a nominal size of €30 million.
If the proposed tax legislation passes, Slovenia would join other European countries like Germany, France, and the Netherlands that have established crypto taxation policies in line with evolving global standards.
The Ministry of Finance is currently accepting public comments on the draft law until May 5, with parliamentary debate expected in the second half of the year.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
