Slovenia Introduces 25% Capital Gains Tax on Crypto Profits

Slovenia’s Ministry of Finance has unveiled two legislative proposals aimed at clarifying and aligning the taxation of digital assets and derivatives. The first proposal, the Law on the Tax on Profit from the Disposal of Crypto Assets, introduces a 25% capital gains tax on crypto profits earned by Slovenian residents. This tax will apply to profits realized from converting cryptocurrencies into fiat currency or using them to pay for goods and services. However, crypto-to-crypto exchanges and wallet transfers between the same owner are excluded from the tax base.

The legislation defines taxable profit as the difference between the total value of disposals and acquisitions of digital assets within a calendar year. Taxpayers must maintain records of all acquisitions and disposals across all holdings and provide them upon request to tax authorities. To ease compliance, the draft includes an optional simplified calculation method. Taxpayers can elect to pay tax on 40% of the combined value of all crypto holdings as of Dec. 31, 2025, plus the value of any disposals in the preceding five years. This one-time option covers activity going back to 2020. The crypto tax law is scheduled to take effect on Jan. 1, 2026.

The second proposal amends existing rules for derivatives, applying a flat 25% tax rate regardless of the holding period. This amendment seeks to simplify the current regime by eliminating the distinction between short- and long-term holdings. All gains from derivatives would be taxed at a flat 25%, irrespective of the duration of ownership or transaction date. The Ministry of Finance stated that these changes fulfill commitments outlined in Slovenia’s 2023–2030 Capital Market Development Strategy and are intended to reduce administrative burdens while enhancing tax certainty for investors.

The proposed legislation aims to align the country with international standards on digital asset regulation and transparency. Clear guidelines for crypto tax are provided, ensuring that individuals are taxed on profits realized from converting cryptocurrencies into fiat currency or using them to pay for goods and services. The legislation also includes provisions for maintaining records of all acquisitions and disposals, with an optional simplified calculation method to ease compliance. Both draft bills are open to public feedback as the government prepares to update its fiscal framework for modern financial instruments.

This move marks a significant shift in Slovenia's approach to cryptocurrency taxation, as it seeks to bring crypto gains under the same tax regime as other forms of income. The proposed legislation has sparked debate among crypto enthusiasts and traders, with some expressing concern about the potential impact on the market. However, the government has emphasized the importance of ensuring that all forms of income are taxed fairly and that the cryptocurrency market is regulated to prevent fraud and other illegal activities. The proposed legislation is expected to undergo further review and public consultation before it is finalized and implemented.