Slovenia plans to take a larger bite of encryption profits. After imposing a 10 % tax on encryption withdrawals in 2023, the country’s Ministry of Finance has now proposed a new law to add a 25 % tax on encryption trading gains. If the bill is passed, the law will begin on January 1, 2026.
Some experts warn that high taxes may scare investors, which may slow down the growth of encryption in Slovenia.
Who will be imposed taxes and how?
under A new bill25 % taxes on the Slovenian population will be imposed on the gains made from encryption trading when;
The proposed tax will be applied to anyone selling an encrypted currency for traditional funds such as the euro or dollars. In addition, if you use encryption to pay the price of goods or services, such as buying something via the Internet or in the store with the encrypted currency.
Finally, the tax can also be applied if you send Crypto regardless of your wallet to another person, either as a gift or a batch.
Who will not be taxed?
However, taxes will not be imposed on all encryption transactions. For example, if you have exchanged an encoded currency to another, such as Bitcoin trading for ethereum, taxes will not be imposed on it.
Likewise, if you transfer the encryption between your personal portfolio, no tax will be applied to these transfers.
Perhaps, the new rules also require individuals to report their encrypted profits every year and keep clear records of all their transactions.
The legislator warns of the negative impact
However, not everyone agrees with the new plan. Jernej VRTOVEC, a member of the new opposition party in Slovenia, Criticize the suggestion. He said that heavy taxes could harm the growing coding sector in Slovenia and expel young talents and investors outside the country.
He believes that the government should encourage innovation, not paying it away with high taxes.
At the same time, the Minister of Finance Kelkin Kiktghanishi said the target From the tax is not just collecting more money but to bring fairness to the system. He pointed out that Crypto is one of the most speculative financial assets and believes that it is just fair to apply the tax rules similar to those of other investments.
What is the size of the encryption market in Slovenia?
With the expectation of an estimated 98,000 encryption users in 2025 and an increasing market that is expected to get $ 2.8 million in revenue, the coding scene in Slovenia is still developing.
The government believes that this new tax can generate between 2.5 million euros to 25 million euros annually, depending on the extent of market activity.
