Slovenia to Tax Crypto Profits 25% from 2026

Slovenia's 25% Crypto Tax: A Closer Look

Slovenia is set to introduce a 25% tax on personal cryptocurrency profits, effective January 1, 2026. This follows a draft legislation released in April 2025, which is currently open for public feedback until May 2025. The proposed tax aims to bring Slovenia's tax system in line with international standards and is expected to generate between €2.5 million and €25 million in annual revenue.

Key Aspects of the Proposed Legislation

Tax applies to conversions: The tax will target transactions where cryptocurrency is converted into fiat currency or used to purchase goods and services.
Exemption for internal transfers: Cryptocurrency transfers between wallets owned by the same individual are exempt from taxation.
Simplified tax calculation: A simplified, optional method allows taxpayers to calculate their tax liability based on 40% of their cryptocurrency holdings as of December 31, 2025, considering disposals over the past five years.
Broader tax reform: The crypto tax proposal is part of a wider reform encompassing derivative financial instruments, also subject to a 25% flat tax rate.

The government's goal is to create a fairer and more transparent tax system for all financial assets, closing existing loopholes and promoting compliance. The proposed tax rate of 25% is intended to strike a balance between revenue generation and encouraging investment in the crypto space.

Impact and Implications

This move by Slovenia could set a precedent for other EU member states considering similar regulations. It reflects a growing global trend towards regulating the cryptocurrency market. The introduction of clear, standardized rules can promote trust and transparency in the crypto industry, attracting legitimate investors and businesses. At Codeum, we understand the importance of regulatory compliance and offer services to help navigate these complexities. Our expertise includes smart contract audits, KYC verification, and custom smart contract and DApp development ensuring your projects adhere to emerging standards and regulations.