Slovenia’s Ministry of Finance has proposed a new law that would impose a 25% capital gains tax on cryptocurrency transactions—marking one of the country’s most significant regulatory moves in the digital asset space to date. The draft legislation, now under public consultation, targets profits made when crypto is converted to fiat or used for goods and services. Wallet-to-wallet transfers and crypto-to-crypto exchanges would remain tax-exempt.
According to the ministry, the goal is to align crypto taxation with Slovenia’s broader tax code. Individuals would be required to document all taxable transactions and report gains annually, with profits calculated as the sale value minus the original purchase price.
Finance Minister Klemen Boštjančič defended the proposal, saying it’s inconsistent to leave speculative markets untaxed.
“The goal of taxation of crypto assets is not to generate tax revenue, but we find it illogical and unreasonable that one of the most speculative financial instruments is not taxed at all,” he told the Slovenia Times.
Lawmakers Warn of Talent Flight Over Crypto Tax Plan
The proposal has already triggered political backlash, with opposition leaders warning that the law could undermine Slovenia’s potential as a crypto innovation hub. Jernej Vrtovec, a member of the National Assembly and the New Slovenia opposition party, criticized the plan as counterproductive to economic growth.
In a statement released April 16, Vrtovec cautioned that high taxation could drive young talent and capital out of the country.
“We have a chance to build a crypto-friendly environment in Slovenia,” he said,
“but burdensome taxation risks sending that opportunity overseas.”
The proposal remains open for public feedback until May 5. If approved, the new rules would go into effect on January 1, 2026—building on Slovenia’s 2023 measure, which imposed a 10% tax on crypto payments and withdrawals but left trading gains largely untouched.
Vrtovec emphasized that tax policy should encourage innovation, not suppress it—echoing ongoing debates across Europe about how to regulate crypto without stifling growth.
Crypto Growth Continues Despite Regulatory Uncertainty
Slovenia’s crypto landscape is evolving amid mixed signals on regulation. Currently, casual crypto activity may be exempt from taxation if treated as a hobby, while mining and staking are taxed as income.
This is not Slovenia’s first attempt at stricter crypto rules. In 2022, lawmakers proposed a 5% annual tax on crypto profits exceeding €10,000 (approx. $11,300), but the measure failed to gain legislative traction.
Despite policy ambiguity, Slovenia has taken bold steps in blockchain adoption. In July 2023, it became the first EU country to issue a fully digital sovereign bond—a €30 million issuance with a 3.65% coupon, maturing in November the same year.
According to Statista, Slovenia’s crypto user base is expected to reach 98,000 by 2025—roughly 4.6% of the population—with projected market revenue hitting $2.8 million. Whether the proposed tax will slow that growth remains uncertain.
Quick Facts
- Tax Proposal: Slovenia plans a 25% tax on personal crypto profits, effective January 1, 2026, pending approval
- Exemptions: Wallet transfers and crypto-to-crypto trades are excluded from the tax
- Rationale: The government aims to align crypto taxation with traditional finance rules
- Public Consultation: Feedback is open until May 5, 2025
