Slovenia Eyes 25% Crypto Tax—Will It Kill Growth?

Slovenia’s Finance Ministry is considering a major overhaul of its crypto taxation and is proposing a 25% tax on crypto profits.

The draft law is open for public consultation until May 5, 2025 but has already sparked controversy among crypto enthusiasts and opposition lawmakers. Here’s what this means for the country’s growing crypto market.

Crypto Tax Proposal

The proposed law will tax profits from crypto trading when converted into fiat or used for goods and services. Crypto-to-crypto transactions and transfers between wallets owned by the same person will be tax-free. This is in line with other financial assets in Slovenia where residents must keep records of their transactions for annual tax returns.

The tax will be calculated by subtracting the purchase price from the sale price of the crypto asset. Finance Minister Klemen Boštjančič says that crypto should be taxed as it’s a speculative instrument and shouldn’t remain untaxed. The tax is not meant to generate big revenue but to align crypto with traditional financial instruments.

Opposition: Stifling Crypto Growth

Jernej Vrtovec, a member of the opposition New Slovenia party, criticized the proposal saying that the tax will undermine Slovenia’s position as a crypto-friendly country. He warned that high taxes will push young investors and capital out of the country and harm Slovenia’s future in the global crypto market.

Vrtovec’s social media post raised concerns about the long term effects of the new tax saying that Slovenia will lose the opportunity to build a crypto-friendly ecosystem. He said that tax policies should encourage growth not stifle innovation and investment.

Crypto in Slovenia: Current State and Projections

Slovenia has a small but growing crypto market. The country has 98,000 crypto users by 2025 and 4.6% crypto penetration rate among 2.12 million population. Despite the new tax the crypto market in Slovenia will generate $2.8 million by 2025.

Slovenia had some regulatory changes in 2023 with 10% tax on crypto withdrawals and payments but capital gains from occasional crypto trading were not taxed. If this proposal is passed it will be a big change in Slovenia’s regulatory approach.

Key Points:

• Tax: 25% on profits converted to fiat or spent on goods/services.

• Exemptions: Crypto-to-crypto transactions and wallet transfers.

• Consultation: Until May 5, implementation in 2026.

• Market: Capital outflow, especially among young investors.