Slovenia, which had been one of the most crypto-friendly nations in Europe, is suddenly taking a dramatic shift in policy. Its Ministry of Finance has introduced legislation, which, if passed, would levy a 25% tax on profits made by individuals from cryptocurrency activity, such as exchanging digital currency for traditional money, spending it, or sending it to someone else. If enacted, these taxations would become operational on January 1, 2026.

New Rules Could Reshape Slovenia’s Crypto Market

Slovenia’s Finance Ministry has tabled a draft bill that aims to bring cryptocurrency tax in line with traditional financial vehicles like equities and derivatives. The strategy, now on public consultation, calls for capital gains tax at 25% on crypto asset sales by private investors. This method tries to balance a discrepancy in existing taxation, wherein conventional assets get taxed but personal cryptocurrency gains go often untaxed. 

Under the proposed regulation, all profits earned from exchanging cryptocurrencies for fiat money, like euros, or from paying with cryptocurrency would be subject to taxation. It also aims to align digital asset taxation with traditional financial instruments, treating net capital gains from crypto similarly to those from stocks or derivatives. The draft law offers a simplified tax option, allowing taxpayers to pay tax on 40% of their crypto holdings’ value as of December 31, 2025, plus the value of any transactions since 2020.

Finance Minister Klemen Boštjančič said it is no longer equitable for one of the most speculative investment categories to remain tax-free. The step aims to close a loophole benefiting individual crypto traders relative to other investors and could raise an estimated €25 million annually. He said in a statement (translated from Slovenian):

“The goal of taxation of crypto assets is not to generate tax revenue, but we find it illogical and unreasonable that one of the most speculative financial instruments is not taxed at all.” 

To promote transparency and proper enforcement, the law would compel individuals to file an annual crypto tax return by March 31, beginning in 2027, for income earned in the 2026 tax year. Merchants that receive over €500 in cryptocurrency will be required to report the transactions. The legislation leaves out some digital assets, such as central bank digital currencies, e-money, NFTs, and security tokens. The legislation adheres to the EU’s MiCA and the OECD’s CARF guidelines. 

What’s Taxed—and What Isn’t

As per the draft plan, crypto-to-crypto trades and wallet transfers within the same user’s ownership would continue to be tax-free. Any fiat conversion or spend on real-world goods would, however, attract the 25% fee, computed based on the net gain from the asset purchase value.

The government anticipates this move to generate €20 to €25 million in yearly revenue, a modest but symbolic amount as part of its broader budget measures. The new law will also tax Slovenian residents 25% on net crypto gains when they sell crypto for fiat currency, use crypto to purchase goods or services, and transfer crypto to another person’s wallet (excluding transfers between personal wallets), whether as a gift or payment.

Conclusion

Slovenia is at a crossroads, with users of bitcoin likely to number 98,000 by 2025.  The action of the country has the potential to set a precedent for other EU nations grappling with how to balance digital innovation and taxation. The move is being watched intently across Europe.  Whether or not this tax would encourage equality or stifle innovation, the debate is already having an impact on Slovenia’s view of the tangible worth of digital assets.