Finance Ministry Draft Aims to Close Tax Loopholes
Slovenia’s Finance Ministry has proposed a 25% tax on profits from crypto transactions, part of a new draft bill now open for public consultation until May 5. The legislation, if passed, would take effect on January 1, 2026, and aims to align crypto taxation with the country’s broader tax code.
The proposed tax would apply when cryptocurrencies are converted into fiat or used to pay for goods and services. However, crypto-to-crypto trades and wallet transfers between addresses owned by the same user would remain exempt, according to an April 17 statement from the ministry.
Under the bill, Slovenian taxpayers would be required to track and report all crypto transactions in their annual filings. The tax base would be calculated using the capital gains model, with profits determined by subtracting the purchase price from the sale price.
Government: “It’s Illogical Not to Tax Speculative Assets”
Slovenian Finance Minister Klemen Boštjančič defended the proposal, arguing that crypto trading has gone untaxed for too long, despite being one of the most speculative financial activities.
“The goal of taxation is not to raise revenue, but it’s illogical and unreasonable that one of the most speculative financial instruments is not taxed at all,” Boštjančič told the Slovenia Times.
Currently, Slovenia imposes a 10% tax on crypto withdrawals and payments, introduced in 2023. However, occasional trading—as well as hobby-based activity—is not taxed. Mining and staking, which fall under business activity, are subject to income tax.
A previous bill in April 2022 proposed a 5% tax on profits exceeding €10,000 (~$11,372), but it failed to pass.
Opposition Warns of Talent and Capital Flight
The proposal has drawn criticism from some lawmakers. Jernej Vrtovec, a member of Slovenia’s National Assembly and part of the New Slovenia opposition party, warned that excessive crypto taxes could drive innovation and youth out of the country.
“Slovenia has the opportunity to become a crypto-friendly country, but with the government’s proposals, we will miss the train again,” Vrtovec wrote on X.
“Taxes should encourage, not stifle. Otherwise, young people and capital will flee abroad.”
Spet brez občutka! Slovenija ima priložnost postati kripto prijazna država, ampak z vladnimi predlogi bomo spet zamudili vlak.
S previsoko obdavčitvijo bomo spet gledali, kako mladi in kapital bežijo v tujino. Davki naj spodbujajo, ne dušijo! https://t.co/dN1fOEcSuU— Jernej Vrtovec (@JernejVrtovec) April 17, 2025
Industry advocates have long seen Slovenia as a potential hub for crypto activity in Central Europe, with a tech-savvy population and early experimentation with blockchain applications. However, critics fear that unclear or overly burdensome regulation could blunt that momentum.
Crypto’s Growing Role in Slovenia’s Economy
According to Statista, Slovenia is expected to have 98,000 crypto users by 2025—around 4.6% of the national population. The country’s crypto market is projected to generate $2.8 million in revenue that year.
In a notable blockchain milestone, Slovenia became the first European Union member to issue a digital sovereign bond in July 2023, worth €30 million (~$32.5 million) with a 3.65% coupon. The issuance was seen as a signal of the country’s willingness to embrace blockchain-based financial instruments.
Final Thoughts: Fair Tax or Missed Opportunity?
As crypto adoption rises globally, Slovenia’s proposed tax law illustrates the delicate balancing act governments face: how to regulate speculative markets without stifling innovation.
Supporters say the new rules would ensure fairness in the tax system, while critics argue they could deter investment and talent in an industry that’s still finding its footing in Europe.
With the bill still under consultation, stakeholders from across the political and tech sectors will be watching closely to see whether Slovenia becomes a crypto reformer—or a cautionary tale.
