Slovenia Proposes 25% Tax on Crypto Profits Starting January 2026

TLDR

• Slovenia’s Ministry of Finance has proposed a 25% tax on crypto profits starting January 2026
• Crypto-to-crypto transactions and wallet transfers between the same owner will be exempt
• The legislation aligns with EU’s MiCA regulation and OECD’s Crypto-Asset Reporting Framework
• NFTs, security tokens, and CBDCs are excluded from the taxable asset pool
• The tax could generate between €2.5 million and €25 million annually for Slovenia’s treasury

Slovenia’s Ministry of Finance has released two draft laws proposing a 25% tax on crypto profits for residents, scheduled to take effect on January 1, 2026. The proposals, now open for public consultation until May 5, aim to align the country’s digital asset taxation with international standards.

The first proposal introduces a capital gains tax on profits earned by Slovenian residents from crypto transactions. The second proposal amends existing rules for derivatives, applying the same flat tax rate regardless of holding period.

Currently, Slovenia taxes crypto income earned by businesses, but individual investors can enjoy tax-free profits in a legal gray area. Finance Minister Klemen Boštjančič stated it’s “illogical and unreasonable that one of the most speculative financial instruments is not taxed at all.”

What Will Be Taxed

Under the proposed crypto tax law, individuals would be taxed when converting cryptocurrencies into fiat currency or using them to pay for goods and services. However, crypto-to-crypto exchanges and wallet transfers between the same owner would be exempt from taxation.

The legislation defines taxable profit as the difference between the total value of disposals and acquisitions of digital assets within a calendar year. Taxpayers must maintain records of all their transactions for annual tax returns.

To ease compliance, the draft includes an optional simplified calculation method. Taxpayers can elect to pay tax on 40% of the combined value of all crypto holdings as of December 31, 2025, plus the value of any disposals in the preceding five years.

International Alignment

The proposed legislation draws from definitions established under the EU’s Markets in Crypto Assets (MiCA) regulation and the OECD’s Crypto-Asset Reporting Framework. This move places Slovenia among other European countries refining their crypto taxation policies.

The tax reform excludes security tokens, central bank digital currencies, electronic money tokens, and non-fungible tokens from the taxable asset pool. These exclusions reflect the complex nature of different digital assets.

Government estimates suggest this tax could add between €2.5 million and €25 million annually to the national budget. The amount will vary depending on crypto market activity and compliance levels.

Transition and Reporting

One key feature designed to ease the transition is the “reset provision,” which values all crypto holdings as of January 1, 2026, at their fair market price. This effectively wipes the slate clean for historical gains and reduces disputes over acquisition costs for long-held assets.

The law mandates that taxpayers file annual crypto tax returns by March 31, beginning in 2027 for the 2026 tax year. Individuals must maintain detailed transaction records for tax authorities.

Merchants accepting over €500 in crypto payments will be obligated to report those transactions. This provision aims to ensure transparency and compliance across the crypto ecosystem.

Political Opposition

Not everyone supports the proposal. Jernej Vrtovec, a member of Slovenia’s national assembly and the New Slovenia opposition party, criticized the plan on social media.

“Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again,” Vrtovec stated.

“With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle.”

This reaction highlights the ongoing debate about how countries can balance tax revenue with fostering innovation in the crypto sector. Slovenia’s approach will be closely watched by other jurisdictions considering similar measures.

Slovenia previously issued the first digital sovereign bond in the European Union on July 25 last year. The bond had a nominal size of 30 million euros with a 3.65% coupon.

The number of crypto users in Slovenia is projected to reach approximately 98,000 in 2025, with a penetration rate of 4.6% among its population of 2.12 million people. The projected revenue for the country’s crypto market is expected to hit $2.8 million.

If passed, Slovenia would join countries like Germany, France, and the Netherlands in refining crypto taxation policies to align with evolving global standards.