Slovenia Proposes 25% Tax on Crypto Profits Starting 2026

Slovenia, previously known for its crypto-friendly stance, has introduced a significant shift in policy with its Ministry of Finance proposing legislation that, if enacted, would impose a 25% tax on profits derived from cryptocurrency activities. This includes exchanging digital currency for traditional money, spending it, or transferring it to another person. The proposed taxations are set to become operational on January 1, 2026.

The draft bill aims to align cryptocurrency taxation with traditional financial vehicles such as equities and derivatives. The strategy, currently under public consultation, calls for a 25% capital gains tax on crypto asset sales by private investors. This move seeks to address a discrepancy where conventional assets are taxed, but personal cryptocurrency gains often go untaxed. Under the proposed regulation, all profits from exchanging cryptocurrencies for fiat money or using cryptocurrency for payments would be subject to taxation. The draft law also offers a simplified tax option, allowing taxpayers to pay tax on 40% of their crypto holdings’ value as of December 31, 2025, plus the value of any transactions since 2020.

Finance Minister Klemen Boštjančič emphasized the need for equity in taxation, stating that it is illogical for one of the most speculative investment categories to remain tax-free. The proposed legislation aims to close a loophole that benefits individual crypto traders relative to other investors and could raise an estimated €25 million annually. To promote transparency and proper enforcement, the law would require individuals to file an annual crypto tax return by March 31, beginning in 2027, for income earned in the 2026 tax year. Merchants receiving over €500 in cryptocurrency will also be required to report these transactions. The legislation excludes certain digital assets, such as central bank digital currencies, e-money, NFTs, and security tokens, and adheres to the EU’s MiCA and the OECD’s CARF guidelines.

As per the draft plan, crypto-to-crypto trades and wallet transfers within the same user’s ownership would remain tax-free. However, any fiat conversion or spending on real-world goods would attract the 25% fee, computed based on the net gain from the asset purchase value. The government anticipates this move to generate €20 to €25 million in yearly revenue. The new law will also tax Slovenian residents 25% on net crypto gains when they sell crypto for fiat currency, use crypto to purchase goods or services, and transfer crypto to another person’s wallet, whether as a gift or payment, excluding transfers between personal wallets.

Slovenia is at a crossroads with the potential to set a precedent for other EU nations grappling with how to balance digital innovation and taxation. The move is being watched intently across Europe. Whether or not this tax would encourage equality or stifle innovation, the debate is already having an impact on Slovenia’s view of the tangible worth of digital assets. The introduction of a 25% tax on cryptocurrency profits in Slovenia is a significant step towards integrating digital assets into the traditional financial system. This tax proposal not only aims to close loopholes in the tax system but also seeks to provide legal clarity and reduce the administrative burden on taxpayers. By aligning with EU standards, Slovenia is positioning itself as a forward-thinking region in the realm of digital asset regulation.

The impact of this tax proposal on the fintech landscape could be profound. It may influence innovation, compliance, and investor behavior within the region. As digital assets continue to gain traction, clear and consistent regulatory frameworks become increasingly important. Slovenia's move to tax cryptocurrency profits at 25% is a clear indication of its commitment to regulating the digital asset space while ensuring that profits from these assets are subject to real-world costs. The proposed legislation aims to bring the country in line with international standards for digital asset regulation and transparency. The new laws are expected to come into effect on January 1, 2026. This move aligns Slovenia with the broader European Union's efforts to regulate the crypto ecosystem, as seen in the Markets in Crypto-Assets (MiCA) regulation, which took full effect across all EU member states.