Slovenia Considers 25% Tax on Cryptocurrency Transactions

The Ministry of Finance of Slovenia is set to evaluate the implementation of a 25% tax on profits from cryptocurrency transactions.

The proposed legislation is currently in a phase of public consultation, which will end on May 5.

According to the proposal, the tax will apply to the sale of digital assets for fiat currency or for purchasing goods and services. However, cryptocurrency exchanges and transfers between personal wallets will not be taxed.

Users will need to document all transactions for their annual tax returns, taking into account the difference between their buying and selling prices. This tax regime will be integrated into existing legal frameworks.

Slovenian Finance Minister Klemen Boštjančič stated in an interview with local media that regulatory measures for taxation are essential. He described the absence of tax on personal cryptocurrency transactions as unfair.

He clarified that the introduction of this tax is not intended to boost government revenue, but rather to address the «illogical» aspects of the current framework.

Jernej Vrtovec from the New Slovenia party believes that such measures could hinder the growth of the cryptocurrency industry in the country.

In his view, taxes may lead investors and emerging professionals to leave Slovenia. He emphasized that fiscal policies should encourage economic growth rather than stifle it.

It’s worth mentioning that in September 2021, the Slovenian Tax Administration began exploring the possibility of implementing an income tax on cryptocurrency transactions.