Slovenia is planning to take a bigger bite out of crypto profits. After imposing a 10% tax on crypto withdrawals in 2023, the country’s Finance Ministry has now suggested a new law to add a 25% tax on crypto trading gains. If the bill gets passed, the law will begin on January 1, 2026.
Some experts warn that high taxes might scare off investors, which could slow down crypto growth in Slovenia.
Who Will Be Taxed & How?
Under the new draft law, Slovenian residents will be taxed 25% on gains made from crypto trading when;
The proposed tax will apply to anyone who sells their cryptocurrency for traditional money like euros or dollars. Additionally, if you use your crypto to pay for goods or services, such as buying something online or in-store with cryptocurrency.
Lastly, the tax could also apply if you send crypto apart from your own wallet to someone else, either as a gift or payment.
Who Won’t Be Taxed?
However, not all crypto transactions will be taxed. For example, if you exchange one cryptocurrency for another, such as trading Bitcoin for Ethereum, this won’t be taxed.
Similarly, if you move crypto between your personal wallets, no tax will be applied to those transfers.
Perhaps, the new rules also require individuals to report their crypto earnings every year and keep clear records of all their transactions.
Lawmaker Warns of Negative Impact
However, not everyone agrees with the new plan. Jernej Vrtovec, a member of the opposition New Slovenia party, criticized the proposal. He said that heavy taxation could harm Slovenia’s growing crypto sector and drive young talent and investors out of the country.
He believes the government should encourage innovation, not push it away with high taxes.
Meanwhile, Finance Minister Klemen Boštjančič said the goal of the tax isn’t just to collect more money but to bring fairness to the system. He pointed out that crypto is one of the most speculative financial assets and believes it’s only fair to apply tax rules similar to those for other investments.
How Big Is the Crypto Market in Slovenia?
With an estimated 98,000 crypto users expected in 2025 and a growing market projected to bring in $2.8 million in revenue, Slovenia’s crypto scene is still developing.
The government believes this new tax could generate between €2.5 million to €25 million a year, depending on how active the market becomes.
