Slovenia’s Finance Ministry has introduced a draft law proposing a 25% tax on crypto trading profits, a move that’s already drawing criticism from opposition leaders who warn it could hamper innovation and drive capital out of the country.
What the Draft Law Proposes
Announced on April 17, the proposed legislation would apply a 25% tax on profits made when residents sell cryptocurrency for fiat currency or use crypto to pay for goods and services. However, it would exempt:
- Crypto-to-crypto transactions
- Transfers between wallets owned by the same user
The law would also require taxpayers to maintain a detailed record of their crypto transactions, with annual reporting expected during tax season. Profits would be calculated by subtracting the purchase price from the sale price of the assets.
Finance Minister Klemen Boštjančič justified the proposal, saying, “It’s unreasonable that one of the most speculative financial instruments is not taxed at all.” He emphasized that the tax aims to bring logic to the country’s financial rules rather than simply raise revenue.
Opposition Warns of Crypto Exodus
Jernej Vrtovec, a representative from the New Slovenia opposition party, voiced strong opposition to the bill. In an April 16 post on X, he argued that high taxes could discourage innovation and prompt young entrepreneurs and investors to seek more favorable jurisdictions.
“Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again,” Vrtovec said. He added that excessive taxation could once again lead to “young people and capital fleeing abroad.”
What’s Next for the Proposal?
The draft bill is currently open for public consultation until May 5. If approved by lawmakers, the new tax policy would take effect on January 1, 2026.
Slovenia already introduced a 10% tax in 2023 on crypto withdrawals and payments. However, occasional crypto trading remains exempt, and hobbyist activity still avoids taxation. Business-related crypto activities, including mining and staking, are subject to income tax.
A similar bill proposed in April 2022, which aimed to tax crypto profits over €10,000 at 5%, was never enacted.
Notably, Slovenia made headlines last year by becoming the first EU country to issue a digital sovereign bond. The €30 million bond came with a 3.65% coupon and matured in November 2023.
With around 98,000 crypto users expected in Slovenia by 2025, representing 4.6% of the population, the country’s crypto market is projected to generate about $2.8 million in revenue, according to Statista.
