Slovenia Announces 25% Capital Gains Tax on Cryptocurrency Transactions Starting 2026

Slovenian authorities have unveiled plans to implement a 25% tax on profits generated from cryptocurrency sales, with the new fiscal policy set to take effect in January 2026. The measure positions Slovenia among European nations establishing clear regulatory frameworks for digital asset taxation. Market participants will need to declare capital gains from crypto transactions, aligning with the country’s broader strategy to formalize cryptocurrency within its financial system. The decision comes as global regulators increasingly focus on cryptocurrency taxation policies to ensure compliance and revenue collection.

• Slovenia’s proposed 25% crypto tax targets capital gains from fiat exchanges.
• Crypto-to-crypto transactions and wallet transfers will remain exempt.
• The proposal could generate up to €25 million annually for Slovenia.

Slovenia’s Finance Ministry has proposed a 25% tax on crypto profits such as  capital gains crypto sales. The proposal, which is has been opened for public participation, seeks to balance crypto taxation and capital investment taxes. The proposed legislation imposes a tax on crypto-to-fiat conversions or when individuals use crypto to pay for goods and services.

The proposed tax exempts crypto-to-crypto transactions and crypto transfer between wallets that belong to one person. This means that crypto to crypto transactions will not be taxed under the proposed tax which provides relief to active traders. Moreover, investors must report their annual crypto transactions and calculate profits based on the difference between sales and purchases, excluding transaction costs.

Crypto Tax Proposal Sparks Mixed Reactions

Finance Minister Klemen Bostjančič stressed that crypto taxation is important to ensure a fair tax system in Slovenia. He stated that such speculative financial instruments should not remain outside the tax system. The Slovenian Ministry claims that the crypto tax is not intended for generation of revenue but rather to create similar taxation rules on crypto transactions and capital investments.

However, the proposal has received skepticism and opposition from various politicians. Jernej Vrtovec, a member of the New Slovenia party, cautioned that the tax could hinder crypto market growth in Slovenia. He explained that the high taxation could force young people and capital to relocate to favourable jurisdictions abroad which could limit Slovenia’s potential as a crypto hub.

If approved, the law would be effective from January 1, 2026 which provides sufficient transition time to crypto users. The proposal is available for public participation until May 5th 2025 and could be amended based on the feedback. Slovenia’s tax system currently imposes a 10% tax on crypto withdrawals and payments but does not tax capital gains from crypto trading.

Crypto Tax Implications on Slovenia’s Crypto Market

The Ministry of Finance estimates that the new tax could produce between €2.5 million and €25 million in tax each year. However, the values based on initial calculations could differ from the actual amount. Slovenia, which boasts the most crypto owners in the Eurozone, has seen increased interest in digital assets with 15% of its adult population owning crypto assets in 2023.

The proposed tax could change the country’s anticipated $2.8 million crypto market value in 2025. Although the proposed taxation could benefit the Slovenian tax structure, it could slow Slovenia’s crypto market growth. The government continues to hold discussions on the impact of the proposed taxation on crypto growth.