Slovenia’s Finance Ministry has introduced a draft law that would impose a 25% tax on profits from crypto trading for residents, marking a significant shift in the country’s approach to digital asset regulation.
The proposal, which was made public on April 17, is now open for public consultation until May 5. Under the draft law, the tax would apply when crypto assets are sold for fiat currency or used to purchase goods and services.
The Finance Ministry stated that the new tax would align with existing tax policies, requiring taxpayers to track all their transactions and report them in annual returns. Profits would be calculated by subtracting the purchase price from the sale price.
However, crypto-to-crypto transactions and transfers between wallets owned by the same individual would be exempt.
“Crypto assets should not be treated differently from other forms of investment.”
“The goal is not necessarily to increase revenue but to ensure fairness in the tax system,” he said in a statement to the Slovenia Times.
Finance Minister Klemen Boštjančič defended the proposal, stating that it was unreasonable for one of the most speculative financial instruments to remain untaxed.
“With excessive taxation, we will once again see young people and capital fleeing abroad,” Vrtovec posted on X. “Taxes should encourage innovation, not suppress it.” A previous attempt to tax crypto in April 2022 proposed a 5% levy on annual profits exceeding €10,000 ($11,372), but it failed to advance.
Jernej Vrtovec, a member of the National Assembly and the New Slovenia opposition party, argued that the proposal could undermine Slovenia’s potential to become a crypto-friendly nation.
According to Statista, Slovenia is expected to have around 98,000 crypto users by 2025, representing 4.6% of its population, with projected market revenue reaching $2.8 million. Last year, Slovenia became the first member of the European Union to issue a sovereign digital bond. The issuance involved a 30 million euro note, worth around $32.5 million, which offers a 3.65% coupon.
Meanwhile, Slovenia continues to play a notable role in digital finance, having issued the EU’s first blockchain-based sovereign bond in 2023.