Slovenia Proposes 25% Tax On Crypto Profits From 2026

Slovenia's Finance Ministry has proposed a draft bill that introduces a 25% tax on profits from the sale of cryptocurrencies, a move that could significantly alter the nation's approach to digital assets and potentially influence broader European markets. The proposed tax, scheduled to take effect on January 1, 2026, would apply to profits from converting cryptocurrencies into fiat currency or using them for purchases. However, crypto-to-crypto trades and wallet transfers under the same ownership would be exempt from this levy.

The draft law, which is open for public feedback until May 5, offers taxpayers a simplified option. Individuals 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 aims to streamline the tax process and provide a clear pathway for compliance.

Finance Minister Klemen Boštjančič has justified the proposal by asserting that cryptocurrencies should not be treated as special assets and must be taxed similarly to other financial instruments. He believes this approach ensures systemic fairness and aligns with global standards, such as the OECD’s CARF and the EU’s MiCA frameworks. However, the proposal has met with resistance from various quarters. Opposition figure Jernej Vrtovec has warned that the tax could drive crypto talent and innovation out of the country, potentially weakening Slovenia’s global positioning in the crypto sphere. Fintech startups have also expressed concerns about 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 the proposed tax could undermine years of progress in fostering a crypto-friendly environment in Slovenia. With a 25% tax rate, Slovenia would join countries in imposing a heavy tax on crypto profits. However, this move could make the nation less attractive to crypto entrepreneurs and investors who seek regulatory clarity and favorable tax regimes, as seen in jurisdictions. As a result, many investors may alter their trading habits or relocate to more crypto-friendly jurisdictions to avoid capital erosion. Slovenia now stands at a crossroads: it can either evolve into a mature, regulated crypto market or risk overregulating and pushing innovation elsewhere. The outcome of this policy shift will depend on the balance between regulatory compliance and fostering a conducive environment for crypto innovation.