Slovenia Proposes 25% Tax On Crypto Profits From 2026

Slovenia’s Ministry of Finance has proposed a 25% tax on crypto profits for residents, set to take effect on January 1, 2026. The proposal, open for public consultation until May 5, aims to align the country’s digital asset taxation with international standards. The first draft introduces a capital gains tax on profits from crypto transactions, while the second amends existing rules for derivatives, applying a flat tax rate regardless of the holding period. Currently, Slovenia taxes crypto income earned by businesses, but individual investors enjoy tax-free profits in a legal gray area. Finance Minister Klemen Boštjančič noted the illogicality of not taxing one of the most speculative financial instruments.

Under the proposed law, individuals will be taxed when converting cryptocurrencies into fiat currency or using them for payments. However, crypto-to-crypto exchanges and wallet transfers between the same owner will be exempt. Taxable profit is defined as the difference between the total value of disposals and acquisitions of digital assets within a calendar year. Taxpayers must maintain records of all transactions for annual tax returns. An optional simplified calculation method allows taxpayers 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.

The legislation aligns with the EU’s Markets in Crypto Assets (MiCA) regulation and the OECD’s Crypto-Asset Reporting Framework. This move places Slovenia among other European countries refining their crypto taxation policies. The tax reform excludes security tokens, central bank digital currencies, electronic money tokens, and non-fungible tokens from the taxable asset pool. Government estimates suggest this tax could add between €2.5 million and €25 million annually to the national budget, varying with crypto market activity and compliance levels.

To ease the transition, the “reset provision” values all crypto holdings as of January 1, 2026, at their fair market price, effectively wiping the slate clean for historical gains. Taxpayers must file annual crypto tax returns by March 31, beginning in 2027 for the 2026 tax year. Merchants accepting over €500 in crypto payments will be obligated to report those transactions, ensuring transparency and compliance across the crypto ecosystem.

Not everyone supports the proposal. Jernej Vrtovec, a member of Slovenia’s national assembly and the New Slovenia opposition party, criticized the plan on social media. Vrtovec stated that Slovenia has the opportunity to become a crypto-friendly country but that the government’s proposals could lead to young people and capital fleeing abroad. This reaction highlights the ongoing debate about balancing tax revenue with fostering innovation in the crypto sector. Slovenia’s approach will be closely watched by other jurisdictions considering similar measures.

Slovenia previously issued the first digital sovereign bond in the European Union. The bond had a nominal size of 30 million euros with a 3.65% coupon. The number of crypto users in Slovenia is projected to reach approximately 98,000 in 2025, with a penetration rate of 4.6% among its population. The projected revenue for the country’s crypto market is expected to hit $2.8 million. If passed, Slovenia would join countries like Germany, France, and the Netherlands in refining crypto taxation policies to align with evolving global standards.