Slovenia considers 25% tax on crypto profits

Slovenia’s finance ministry has reportedly proposed a 25% tax on personal profits from crypto asset disposals in a bid to close a tax system loophole that currently exempts individual investors while taxing business income from crypto trading.

The proposed legislation’s main purpose is to ensure greater fairness in the taxation of investment income among Slovenian citizens.

The draft legislation changes things

As things stand, individuals trading crypto benefit from a tax advantage while traditional investments are greatly exposed, a phenomenon the government now seeks to balance.

Under the draft legislation, profits realized from converting crypto into fiat currency, such as euros, or using crypto to pay for goods and services would be taxed. However, the exchange of one crypto asset for another would remain tax-free.

The new laws would require taxpayers to maintain detailed transaction records and file annual tax returns by March 31 for the previous year. Meanwhile, merchants accepting over €500 in crypto must report these transactions.

Central bank digital currencies, electronic money, security tokens, and NFTs are excluded from the new tax framework. The law follows definitions introduced under the EU’s MiCA regulation and OECD’s CARF framework.

To make the transition easier on all participants, all crypto assets held before 2026 will be “reset” and acquisition cost would be set at fair market value on January 1, 2026.

Aside from aligning Slovenia’s tax treatment of crypto with traditional investments, the measure is considered necessary given the growing role of crypto assets and the push for global transparency standards.

There is also all the revenue the new tax has the potential of generating. In fact, according to the finance ministry, the new tax could bring in between €2.5 million and €25 million in annual revenue.

The Slovenian Finance Ministry has asked for public feedback on the proposed tax regime, which is expected to take effect January 1, 2026, pending parliamentary approval with public comments on the proposal due by May 5.

Is Slovenia still a crypto tax haven?

In the past, many investors considered Slovenia a choice destination because of its tax regime, which stated that for cryptocurrencies traded outside of a permanent business activity, the capital gains from their trade will not be subject to any capital gains tax.

Even before the proposal of the 25% tax on crypto profits, there were complaints about the ambiguity of the laws. After all, in Slovenia, there are no clear guidelines as to the meaning of a “permanent business activity”.

This means the Financial Administration of the Republic of Slovenia (FURS) has a sole discretion in determining whether or not a trader is engaged in a permanent trading business activity.

The lack of legal certainty was of course not enough to dissuade some investors from taking advantage of what Slovenia’s tax regime offered. However, even that advantage is about to be stripped away.

The current proposal will now make crypto traded by personal investors subject to a 25% tax, which means the government takes a huge chunk out of traders’ money either way, leading to serious deliberations about Slovenia’s status as a crypto tax haven.