Slovenia’s Finance Ministry Proposes 25% Tax on Cryptocurrency Transactions
April 18, 2025
Slovenia’s Finance Ministry has announced a proposal to impose a 25% tax on profits from cryptocurrency transactions conducted by residents, according to a recent statement. This plan, which is currently open for public consultation, aims to tax individuals when they convert their cryptocurrencies into fiat currency or use them to pay for goods and services. However, the suggested legislation stipulates that crypto-to-crypto transactions and transfers between wallets owned by the same user would be exempt from this tax.
Details of the Proposed Taxation
Under the new draft law, tax provisions for the cryptocurrency market would align with existing laws governing tax obligations in Slovenia. It would require taxpayers to meticulously keep records of every transaction to accurately report earnings during annual tax returns. The tax base would be calculated by taking the difference between the selling price and the original purchase price of the cryptocurrencies.
Klemen Boštjančič, the Finance Minister, defended the proposal, arguing that it is unreasonable for cryptocurrency trading to remain 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," Boštjančič stated.
Concerns from Opposition Lawmakers
Opposition to the proposed tax has emerged from Jernej Vrtovec, a member of Slovenia’s national assembly and representative of the New Slovenia party. In a statement made on April 16, Vrtovec expressed concerns that such a tax could inhibit growth within the country’s burgeoning cryptocurrency industry. He emphasized that Slovenia has the potential to become a crypto-friendly nation, but excessive taxation could lead to a loss of young talent and capital to other countries.
"With excessive taxation, we will once again see young people and capital fleeing abroad. Taxes should encourage, not stifle," Vrtovec remarked, suggesting that the government may be jeopardizing Slovenia’s competitiveness in the global crypto landscape.
Public Consultation and Next Steps
The proposal is currently under public consultation, which is open until May 5, 2025. If the bill is approved by lawmakers, it is set to take effect on January 1, 2026. Slovenia had previously introduced a 10% tax on crypto withdrawals and payments in 2023, although profits from occasional trading have remained untaxed, as indicated by the crypto tax platform Token Tax.
At present, crypto-related activities may also escape taxation if deemed as hobbies. However, business activities, including cryptocurrency mining and staking, are subject to income tax, reflecting a nuanced approach to regulation in the sector.
Background on Cryptocurrency in Slovenia
This latest proposal comes in light of Slovenia’s growing involvement in the cryptocurrency market, which includes the issuance of its first digital sovereign bond in 2023. Data suggests that the number of cryptocurrency users in Slovenia is expected to reach approximately 98,000 by 2025, representing a penetration rate of about 4.6% of the country’s total population of 2.12 million. Additionally, the projected revenue from Slovenia’s crypto market is anticipated to reach $2.8 million.
As the country continues to navigate the complexities of cryptocurrency regulation, the upcoming discussions on the proposed tax will be crucial in determining the future landscape of crypto trading and investment in Slovenia.
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