Slovenia to Implement 25% Tax on Digital currency Earnings Beginning in 2026
Slovenia has officially revealed its intentions regarding cryptocurrency profits, and it’s not doing so discreetly. On April 17, the Ministry of Finance announced a draft law suggesting a 25% tax on personal profits from crypto transactions. If the law gets approval, Slovenia’s Crypto Tax will become effective on January 1, 2026. This means that any earnings you make from trading tokens or withdrawing crypto could soon attract the attention of tax authorities.
However, before anyone panics, let’s clarify what this entails.
The tax applies only when you convert cryptocurrency to fiat or use it for tangible goods and services. Simply trading one cryptocurrency for another (for example, ETH for SOL) or transferring assets between your own wallets? That remains exempt from taxes. So, it’s not a blanket tax, only applicable at the points of exit.
According to the proposal, your taxable earnings would be the difference between your initial investment in crypto asset and what you realized upon selling or utilizing it. You will need to report this every year and, yes, maintain thorough records. A lot of records. Also, if you are a business owner receiving over €500 in crypto? You’ll need to report those transactions, as well.
An optional, one-off “simplified” method exists to mitigate the overwhelming paperwork. You would owe tax on 40% of the total value of your digital currency holdings as of the end of 2025, including any disposals dating back to 2020. So, if you’ve been quietly amassing cryptocurrency for years, this could provide you a clean slate, albeit for a cost.
Reasons Behind Slovenia’s Crypto Tax and Anticipated Effects
So, why is this happening now?
Finance Minister Klemen Boštjančič has emphasized that it’s about equity. He asserts that speculative investments like cryptocurrencies should not be left untaxed while traditional investors in stocks or bonds are paying their dues.
Slovenia’s finance ministry has proposed a 25% capital gains tax on personal crypto asset profits, effective January 1, 2026, if approved.
The bill, open for public comment until May 5, 2025, aims to align crypto taxation with existing laws, closing a loophole that exempted…
— Vanquish Adept (@VanquishAdept) April 17, 2025
The government anticipates that this change could yield between €2.5 million and €25 million each year. It’s not exactly a bonanza, but certainly not insignificant either. Moreover, it aligns with Slovenia’s ambitions to modernize its financial markets and diminish administrative burdens, or at least clarify the regulations for investors.
Implications for Investors and Startups
This isn’t merely a minor tax adjustment; it signifies a change in approach.
Slovenia was previously perceived as a “crypto-friendly” EU nation where traders felt secure. But now? Traders and startups might begin reconsidering their options. The potential 25% tax could lead some individuals to contemplate relocating or offshoring their operations.
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Startups may also feel the repercussions, particularly in sectors like fintech and Web3. An increase in taxes leads to more administrative work, which translates to greater costs. And elevated costs? That’s not favorable for a sector aiming for expansion.
Public Feedback and Upcoming Actions
The proposition is not yet finalized. The public has until May 5 to share their thoughts. Following that, it will proceed through the legislative process, with a target launch in 2026.
However, make no mistake, the era of tax-free cryptocurrency in Slovenia is coming to an end. The critical question is how traders and developers will adapt as one of Europe’s more reserved havens shifts towards full compliance.
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Key Takeaways
- Slovenia is set to implement a 25% tax on individual crypto gains starting January 1, 2026, focused on conversions to fiat and real-world purchases.
- Exchanges between cryptocurrencies and crypto wallet transfers will continue to be tax-exempt, but there will be requirements for yearly reporting and thorough documentation.
- An optional “simplified” scheme allows individuals to be taxed on 40% of their holdings as of the end of 2025, including any disposals dating back to 2020.
- The government predicts annual revenues of €2.5M to €25M, stating that this measure ensures equitable taxation across different asset categories.
- This indicates a departure from Slovenia’s previous crypto-friendly reputation, potentially affecting local traders, startups, and Web3 enterprises.
The post Slovenia Plans 25% Tax on Crypto Profits Starting 2026 appeared first on 99Bitcoins.
