Slovenia Proposes 25% Tax On Crypto Gains From 2026

Slovenia's Ministry of Finance has proposed a significant change in its tax policy, aiming to introduce a 25% tax on profits derived from cryptocurrency transactions starting from January 1, 2026. This move is part of a broader effort to align the taxation of cryptocurrencies with that of traditional investments, potentially generating substantial revenue for the government. The proposed legislation seeks to close a loophole that currently benefits individual crypto traders relative to other investors, and it is estimated that this tax could raise around €25 million annually.

The draft bill, released by the Finance Ministry, outlines that the tax will apply to gains from converting cryptocurrencies into fiat currency or using them to purchase goods and services. However, it will exclude crypto-to-crypto swaps and wallet transfers under the same ownership. This approach aims to ensure that cryptocurrencies are treated similarly to other financial instruments, reflecting global standards under frameworks like the OECD’s CARF and the EU’s MiCA.

The proposed law offers taxpayers a simplified option: they can choose to pay tax on 40% of their total crypto portfolio as of December 31, including previous disposals from the last five years. This provision is designed to provide flexibility and ease the compliance burden for taxpayers. The public consultation phase for the proposal is open until May 5, allowing stakeholders to submit their feedback before the law takes effect on January 1, 2026.

Finance Minister Klemen Boštjančič has argued that cryptocurrencies should not enjoy special treatment as speculative assets and must be taxed like any other financial instrument. He believes that the proposal ensures systemic fairness and reflects global standards. However, the proposal has met with resistance from various quarters. Opposition figure Jernej Vrtovec has warned that the tax could push crypto talent and innovation out of the country, weakening Slovenia’s global positioning. Fintech startups have also raised concerns over the added compliance burdens, including mandatory annual reporting and detailed recordkeeping of every transaction.

The timing and scope of the tax remain contentious. Critics argue that it threatens to undo years of progress in nurturing Slovenia’s crypto-friendly image. With a 25% tax rate, Slovenia joins countries like Germany in taxing crypto profits heavily, but it loses ground to jurisdictions like Portugal, Switzerland, and Malta that offer more lenient or even zero tax policies. This could make Slovenia less attractive to crypto entrepreneurs and investors seeking regulatory clarity and favorable tax regimes. As a result, many investors may alter their trading habits or relocate to friendlier jurisdictions to avoid capital erosion.

In the broader context, Slovenia now finds itself at a crossroads. It can either evolve into a mature, regulated crypto market or overregulate and force innovation elsewhere. The proposed tax aims to bring clarity and fairness to the crypto landscape, but it also risks stifling the very innovation that has made Slovenia a hub for cryptocurrency activity. The outcome of this policy shift will depend on how well the government balances the need for revenue with the desire to foster a thriving crypto ecosystem.