Slovenia considers 25% tax on crypto profits in 2026

Slovenia’s Finance Ministry has proposed a 25% tax on profits from cryptocurrency transactions, a move that could reshape the country’s approach to digital asset taxation if enacted in 2026.

The draft law, now open for public consultation until May 5, would tax residents when they convert cryptocurrencies into fiat currency or use them to pay for goods and services.

However, crypto-to-crypto transactions and transfers between wallets owned by the same individual would remain exempt, reflecting the technical complexity of tracking such exchanges.

“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,” stated Finance Minister Klemen Boštjančič, defending the proposal.

The ministry emphasised that the measure aims to align crypto taxation with existing rules for other investment assets, such as stocks and bonds.

Under the new framework, taxpayers would be required to keep detailed records of all crypto transactions for annual tax returns, with the tax base calculated by subtracting the purchase price from the sale price.

The law would also require merchants accepting over €500 in crypto to report these transactions.

“With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle,” argued Jernej Vrtovec of the New Slovenia opposition party, criticising the proposal.

Vrtovec warned that the new tax could undermine Slovenia’s potential to become a crypto-friendly destination.

If passed by parliament, the law would take effect on January 1, 2026, with authorities estimating it could generate between €2.5 million and €25 million in annual revenue.

To ease the transition, all crypto assets held before 2026 would have their acquisition cost reset to fair market value on January 1, 2026.

The proposed tax excludes central bank digital currencies, security tokens, electronic money, and NFTs, and follows definitions set by EU and OECD standards.

The measure is part of Slovenia’s ongoing efforts to align its financial regulations with international transparency and tax fairness initiatives.