Slovenia is set to introduce a significant tax on cryptocurrency gains, with profits from crypto sales subject to a 25% levy starting from 2026. The move aims to bring crypto investments into line with other capital assets.
The Slovenian government has announced a plan to tax cryptocurrency profits at a rate of 25%, starting from 2026.
The proposed tax would apply to gains made from selling crypto for fiat currency or using it to purchase goods and services.
The Slovenian tax system is based on a progressive income tax, with rates ranging from 16% to 38%.
Residents are taxed on their worldwide income, while non-residents are only taxed on Slovenian-sourced income.
Corporate taxation in Slovenia is also relatively high, with a corporate tax rate of 19%.
Additionally, there are various taxes and fees, such as value-added tax (VAT) at rates from 9.5% to 22%, excise duties, and social security contributions.
Under the proposal, individuals would be required to calculate their profit as the difference between the value at acquisition and sale, adjusted for transaction fees.
Losses can be carried forward to offset future gains. Taxpayers would need to file an annual return by March 31 and make payment within 15 days.
Swapping one cryptocurrency for another will remain tax-free under the proposal.
Additionally, any gains made before January 1, 2026, will not be taxed.
The measure is intended to treat crypto gains more like other capital investments, such as stocks or bonds, which are already subject to taxation.
By implementing this tax, the Slovenian government aims to close a gap in the country’s tax system and generate significant revenue.
Cryptocurrency taxation varies by country, with some having specific laws and regulations.
In the United States, for example, cryptocurrency is considered property, not currency, subject to capital gains tax.
The IRS requires taxpayers to report cryptocurrency transactions on their tax returns.
Other countries like Japan and South Korea have similar regulations.
However, some nations like Singapore exempt cryptocurrencies from taxation.
Taxpayers must research their country's specific laws to ensure compliance.
Preliminary estimates suggest that the tax could generate between €2.5 million and €25 million annually.
The Ministry of Finance is currently soliciting public feedback on the proposal, which would come into effect next year.
Slovenia has seen a significant increase in cryptocurrency revenue in recent years.
According to data from the Slovenian Tax Authority, cryptocurrency transactions have generated an estimated €100 million in tax revenue since 2018.
The country's favorable regulatory environment and high level of digital literacy among its citizens have contributed to this growth.
In fact, Slovenia is home to some of the largest cryptocurrency exchanges, including Bitstamp and Kraken.
- coindesk.com | Slovenia Moves to Tax Crypto Profits at 25%
