Slovenia’s Finance Ministry has proposed a 25% tax on capital gains from Cryptocurrency, which starts in 2026, according to a draft law aimed at closing a gap in the country’s tax system.

The tax applies to profits made when individuals sell crypto to Fiat currency or use it on goods and services. However, exchange a cryptocurrency for another will remain tax -free, and any gains obtained before 1 January 2026 are not taxed in accordance with the Ministry of Finance’s proposal.

The measure is intended to treat crypto more than other capital investments, such as shares or bonds already taxed.

According to the law, individuals calculate their profits as the difference between the value of acquisition and in sale, adjusted for transaction fees. Losses can be transferred to offset future gains. Taxpayers had to submit an annual return before March 31 and make payment within 15 days.

The tax could generate between € 2.5 million and € 25 million annually, according to preliminary government estimates. The country’s Ministry of Finance requests public feedback on the proposal that would come into force next year.

The proposal comes as data from the European Central Bank’s survey of consumer payment cords in the euro area ‘shows that Slovenia has the highest proportion of cryptocurrency owners in the euro area, where 15% of adults have digital currencies last year, up from 8% in 2022.

Disclaimer: Information collected for this article was translated with the use of artificial intelligence.