Slovenia introduces a new proposal to tax cryptocurrency profits

Slovenia's Ministry of Finance has introduced a new proposal to tax personal cryptocurrency profits. According to the draft legislation released in April 2025, Slovenia has announced

Slovenia's Ministry of Finance has opened a consultation on a proposal to tax personal cryptocurrency profits, aiming to introduce a 25% tax on capital gains from cryptocurrency disposals starting January 1, 2026.

The proposal, which is open for public feedback from May 5 to May 20, 2025, is part of broader plans to align Slovenia's tax system with international financial standards. Currently, no taxes apply to cryptocurrency transactions conducted by individuals, forming a legal loophole that enables many investors to avoid paying taxes even on substantial profits.

The government intends to introduce financial asset taxation with equal fairness by eliminating these discrepancies. The tax proposals target transactions when cryptocurrency owners convert digital assets into standard currency to pay for goods or services or when they transfer their cryptocurrency holdings to other individuals.

The Internal Revenue Service would not impose taxation on transactions that swap cryptocurrencies between different wallets when both wallets belong to a single person. This exception targets real-world financial transactions, and the ministry aims to prevent avoidable complexities in tax rules.

To help taxpayers manage their administrative tasks, the ministry created a voluntary, simplified approach for tax calculation. People can use an optional calculation method to determine their tax liabilities from their crypto assets by taking 40% of their December 31, 2025, cryptocurrency values and considering the past five-year disposal amounts.

The government has set a 25% tax rate, which it plans to use because it believes it promotes compliance effectively. This system aligns with standard good practices in Organisation for Economic Co-operation and Development (OECD) member states.

In addition to changes concerning cryptocurrencies, changes to derivative financial instrument taxation are a part of the proposal. The proposed modifications form part of Slovenia's Capital Market Development Strategy, which extends from 2023 to 2030.

The ministry describes derivatives as subject to 25% flat taxation that disregards the time investors hold their investments. The standardized system aims to minimize regulatory challenges through standardized regulations for all types of financial assets.

This move is also expected to generate revenue of 2.5-25 million euros annually for the state coffers.

The ministry's support for crypto taxation regulation is based on international standards, which improve data transparency for sharing between borders.

The proposed framework provides officials with an uncomplicated taxation process, which creates ease of compliance for taxpayers who need to carry out minimal administrative activities.

This initiative aligns Slovenia's policies with global trends in implementing global digital asset policies to build a safer and more transparent space for cryptocurrency investments.

This financial regulatory framework represents a larger government initiative to manage new financial technologies while sustaining innovative practices in the industry.

When implemented, the new tax system would reshape Slovenian laws regarding digital wealth and demonstrate potential impact on EU member states' regulatory adjustments.