Slovenia’s Finance Ministry Proposes 25% Tax on Crypto Transactions

Slovenia’s Finance Ministry Proposes 25% Tax on Crypto Transactions

Slovenia's Finance Ministry has unveiled a draft proposal to impose a 25% tax on profits from cryptocurrency transactions, igniting debate among lawmakers and the local crypto community. The proposal, now open for public consultation until May 5, would see residents taxed when converting crypto to fiat or using it to pay for goods and services.

Under the proposed legislation, crypto-to-crypto trades and transfers between wallets owned by the same individual would be exempt from taxation. Taxpayers would be required to maintain detailed records of their crypto transactions to include in their annual tax returns. The taxable amount would be based on realized profits, calculated by subtracting the purchase price from the sale price.

Finance Minister Klemen Boštjančič defended the proposal, calling it an overdue step to bring one of the most speculative financial sectors in line with existing tax laws.

“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 told The Slovenia Times.

Opposition Pushback: “We Will Miss the Train Again”

Not everyone is on board with the plan. Jernej Vrtovec, a member of Slovenia’s national assembly and the New Slovenia opposition party, has strongly criticized the move. In a statement on X (formerly Twitter), Vrtovec warned that overregulation could push innovation and investment out of the country.

Source: Jernej Vrtovec

“Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again,” he said.

“With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle.”

If passed, the law would take effect on January 1, 2026.

A Step Up from Existing Frameworks

Slovenia currently applies a 10% tax on crypto withdrawals and payments, introduced in 2023. However, profits from occasional trading remain untaxed if the activity is considered a hobby. Crypto-related business activities like mining and staking, on the other hand, are subject to income tax.

The new draft law marks a significant shift from a previous attempt in April 2022 to introduce a 5% tax on crypto profits exceeding €10,000 ($11,372), which failed to pass.

Crypto Landscape in Slovenia

Slovenia has emerged as a modest yet growing crypto hub. The country made headlines in July 2023 by issuing the European Union’s first digital sovereign bond — a €30 million ($32.5 million) offering with a 3.65% coupon and a short-term maturity.

According to Statista, Slovenia's crypto user base is expected to grow to around 98,000 by 2025, representing a 4.6% penetration rate in a population of 2.12 million. The country’s crypto market revenue is projected to reach $2.8 million.

As the consultation period continues, the crypto community and policymakers alike will be watching closely to see whether Slovenia chooses to embrace innovation or impose barriers that could stifle it.