Slovenia Proposes 25% Flat Tax on Crypto and Derivatives Ahead of 2026 Launch

• Slovenia plans to tax crypto and derivatives at a flat 25% starting January 2026.
• The crypto tax applies only when converting to fiat or making purchases with digital assets.
• A simplified tax option lets users pay on 40% of holdings as of December 2025.

Slovenia’s Ministry of Finance has proposed two tax laws aimed at tightening regulation on crypto and derivatives. The public consultation period began on April 17 and will close on May 5.

The first bill introduces a 25% capital gains tax on profits from crypto sales. The law would apply to residents converting crypto into fiat or spending it on goods and services. However, crypto-to-crypto exchanges and wallet transfers between accounts owned by the same person remain tax-free.

The second bill revises existing laws for derivatives. It eliminates distinctions between short- and long-term holdings. All profits from derivative instruments will now be taxed at a flat rate of 25%.

Both bills are part of Slovenia’s 2023–2030 Capital Market Development Strategy. Authorities aim to bring transparency and international compliance to digital asset taxation.

Crypto Tax to Target Realized Profits Only

The crypto tax would only apply to realized profits. This includes any time crypto is sold for cash or used for purchases. It excludes transfers within wallets under the same ownership and crypto swaps.

Taxable profit will be calculated as the difference between total disposals and acquisitions in a calendar year. Residents must keep transaction records and provide them to tax authorities when requested.

A one-time simplified tax option is also included. It allows taxpayers to pay tax on 40% of their holdings’ value as of December 31, 2025. This option also includes disposals made since 2020. It is intended to ease the reporting burden.

If approved, the law will come into effect on January 1, 2026. This would give residents time to organize their records and prepare for compliance.

Derivatives Tax to Be Streamlined

The new derivative tax law removes complexity from the current system. It applies the same 25% rate to all gains, regardless of holding period. This change aims to reduce administrative costs and increase tax certainty.

Authorities say the move will simplify filing and improve alignment with global financial norms. The current framework distinguishes between long- and short-term holdings, which often leads to confusion and disputes.

Concerns Over Capital Flight and Innovation Risks

Critics argue that the high tax rate may drive crypto users and investors abroad. Some warn that the policy could hinder innovation and growth in Slovenia’s digital finance sector.

Currently, Slovenia taxes crypto withdrawals and payments at 10%. Trading crypto for entertainment remains untaxed. However, mining and staking income still falls under general income tax laws. The final law will depend on public feedback and parliamentary approval in the coming months.