Slovenia Plans to Impose a 25% Tax on Cryptocurrency Earnings

Slovenia’s finance ministry has proposed a 25% tax on capital gains from cryptocurrency starting in 2026, as part of a draft law designed to address a gap in the country’s tax system. This tax will apply to profits earned when individuals sell crypto for fiat currency or use it to purchase goods and services. In contrast, trading one cryptocurrency for another will remain tax-free, and any gains accrued prior to January 1, 2026, will not be subject to taxation, according to the finance ministry’s proposal.

The intention behind this measure is to align the taxation of crypto gains more closely with that of other capital investments, such as stocks or bonds, which are already taxed. Individuals will need to calculate their profit based on the difference between the acquisition value and the sale value, after accounting for transaction fees. Losses can also be carried forward to offset future gains. Taxpayers will be required to submit an annual return by March 31 and remit payment within 15 days.

According to preliminary government estimates, the tax could generate between €2.5 million and €25 million annually. The Ministry of Finance is currently seeking public feedback on the proposal, which is set to take effect next year. This proposal follows data from the European Central Bank’s ‘Survey on Consumer Payment Attitudes in the Euro Area,’ revealing that Slovenia has the highest proportion of cryptocurrency owners in the euro area, with 15% of adults possessing digital currencies last year, an increase from 8% in 2022.

Disclaimer: Information collected for this article was translated with the use of artificial intelligence.