Slovenia, Plan to tax cryptocurrency profits at 25%

The Slovenian government is pushing a bill to apply a 25% tax rate on personal profits from cryptocurrency trading. The bill is currently undergoing a public consultation process and, if passed, is expected to be implemented from January 2026.

The Ministry of Finance of Slovenia stated in a press release on the 17th (local time) that "taxable transactions include exchanging cryptocurrencies for legal tender or paying for goods and services, while transactions between cryptocurrencies or transfers between the same user's wallets are not taxed." The tax is calculated based on the difference between the purchase and selling prices, and taxpayers must record all transaction details and submit them at the end of the year when filing taxes.

Finance Minister Klemen Boštjančič emphasized, "The current situation where cryptocurrency transactions occur without any tax is not rational," and highlighted that the purpose of this taxation is not simply revenue generation but tax equity. He said, "Cryptocurrencies are one of the most speculative financial instruments, and it is illogical not to impose any tax on them."

However, there is strong opposition to the bill. Opposition member Jernej Vrtovec criticized the government's plan, saying it would hinder the growth of the cryptocurrency industry. He warned, "The government is missing the opportunity for Slovenia to establish itself as a cryptocurrency-friendly nation, and excessive taxation will result in young talent and capital exiting abroad."

Slovenia has already been applying a 10% tax on payments and withdrawals through cryptocurrency since 2023, and income tax is imposed on business activities such as mining or staking. However, this bill intends to expand the tax scope to include personal asset disposal gains that were previously exempt.

The Slovenian government also plans to organize the tax system for derivative financial products. The Ministry of Finance stated, "The purpose is to consistently tax income from similar financial products and provide clear criteria to taxpayers." The government expects an annual tax revenue of at least 2.5 million euros and up to 25 million euros from this measure.

Slovenia issued a digital bond for the first time among EU countries in July last year, and according to market research firm Statista, approximately 98,000 people are expected to use cryptocurrencies by 2025. The cryptocurrency-related market size is expected to reach about 2.8 million dollars.