Bitcoin Association of Slovenia: Slovenian Law on Taxation of Bitcoin

In year 2025 Slovenia got a proposal, called the Law on Taxation of Gains from Disposal of Crypto-Assets (ZDDOKS), prepared by the Ministry of Finance. The draft includes a %25 tax on digital asset gains, with no relief for long-term holding (HODL).

That proposal triggered a strong reaction from the bitcoin community. The Bitcoin Association Slovenia (BDS) with president Toni Čepon and Blockchain Alliance EU with Tanja Bivic Plankar took leading roles in opposing ZDDOKS.

Together with other members of community they pointed out flaws in the proposal and advocated for a more balanced law.

They wrote comments and proposals, organizing and attending meetings with decision-makers and organize a public campaign that got strong support both domestically and abroad.

In the comments (more than 80 pages) the Bitcoin Association of Slovenia highlighted several key deficiencies and dangers of the proposal.

One main argument was that the law equates all digital assets with derivatives and completely ignores their differences (Bitcoin vs crypto). For example, in comments they described bitcoin as a store of value, a means of payment, and a strategic reserve (similar to gold) not merely a speculative investment.

They proposed splitting “crypto-assets” into two or more categories: currencies (like bitcoin) and others that are more speculative. Another major criticism was the absence of a time of holding limit.

While derivative taxes decrease with holding time (to 10% after 15 years, with later exemption), there is no such provision for digital assets, which critics say incentivizes short-term speculation and discourages long-term investors.

They also pointed out a problematic part: the law promises simplification with a net cashflow model (taxing only fiat exits) but simultaneously requires recording of every payment transaction, even for non-taxable events. That is increasing the administrative burden but only for taxpayers.

The law would require self-declaration of digital asset holdings with detailed data (amount, type, storage method, etc.), which could endanger holders’ security because attacks on bitcoin owners in the EU are increasing day by day, and such a state-held database would become a large or excessive security risk for individuals.

Digital asset transfers lack intermediaries or protections like banking systems, so mandatory reporting would greatly raise risks.

Critics stressed that the law fails to achieve its goals; it does not reduce bureaucracy, does not align taxation with other investments, and does not contribute significantly to the budget, since a high tax rate makes digital asset payments uncompetitive and a protection against inflation completely unappealing.

As an alternative, they proposed a progressive tax model, tax exemption for assets similar to gold and cash, and alignment with European standards as in Germany, Croatia, Portugal, and similar countries.

Nevertheless, they judged that further June amendments to the draft were insufficient, as they preserve the core problem and indicate a lack of political will for serious dialogue.

BDS did not act alone. They closely cooperated with Blockchain Alliance Europe (BAE), led by Tanja Bivic Plankar.

Together they prepared extensive comments and attended several working meetings at the Ministry of Finance, including the one on June 30, 2025, where they presented a revised proposal.

At these meetings, they presented arguments to ministry representatives, but despite more than 300 comments received from the community, they did not achieve substantial changes.

Support also came from other sources. The Slovenian Business Club (SBC) agreed with the proposals of BDS and BAE; its president Toni Čepon described this as proof of the correctness and sensibility of their positions.

Many other organizations and initiatives were involved. Public support was expressed by individuals and supporters of the association from abroad, and there was significant backing via social networks.

The Bitcoin community shared its views on LinkedIn, Facebook, and YouTube, where Čepon and Bivic Plankar appeared on podcasts and debates, emphasizing that digital assets are tools for financial freedom and inflation protection.

These podcasts showed much public support, but decision-makers did not listen or consider any changes.

The rejection of ZDDOKS in its current form is a step in the right direction because it prevents the introduction of one of the strictest digital assets and bitcoin tax regimes in Europe, which could have hampered innovation and driven away investors.

Instead, it opens space for a more thoughtful law that considers expert arguments and encourages ecosystem development.

This is positive because it protects citizens’ privacy, reduces administrative burdens, and prevents high taxes from favoring speculators at the expense of long-term holders.

Slovenia and its citizens can gain more. The country has a rich Bitcoin history; from the oldest active exchange Bitstamp to Ljubljana being named the most Bitcoin-friendly city in the world in 2024.

With a balanced approach it could become a European digital asset hub, attract foreign investment, and encourage domestic entrepreneurship in new technologies.

That would create new jobs, increase economic growth, and improve financial literacy. Citizens would enjoy greater financial freedom, protection against inflation (bitcoin as “digital gold” and sound money), and access to innovative payment methods without unnecessary barriers.

Ultimately this would strengthen Slovenia as an advanced digital economy rather than lagging behind countries such as Italy, France, Denmark, Norway, or other EU members.

Current taxation of digital assets and bitcoin for individuals in Slovenia is based on the Personal Income Tax Act (ZDoh-2).

Under applicable rules (status January 2026), gains from occasional trading or disposal of digital assets (e.g., selling bitcoin for fiat, crypto-to-crypto exchange, or using digital assets for payment) by individuals who do this occasionally and not as a regular activity are not taxed under income tax.

This means:

The Financial Administration of the Republic of Slovenia (FURS), in its explanations and guidelines from past years, clearly states that occasional investment activity in digital assets does not fall under taxable capital gains according to ZDoh-2 (unlike shares or real estate), because digital assets are not treated as movable property in the sense of capital gains with reliefs.

Therefore, Slovenia has remained (and at least in early 2026, given the failure/temporary blocking of ZDDOKS) relatively Bitcoin-friendly for holders, without automatic taxation of gains for occasional investors.

Note on ZDDOKS: The proposed law with a 25% tax on gains from disposal of digital assets (which would have changed this situation and introduced flat taxation even for occasional cases) was not adopted in its current form or its procedure was at least temporarily suspended or postponed.

If adopted in the future, rules would change from the date of entry into force onward (likely not retroactively for past gains). Until then, the ZDoh-2 rules described above apply.

For specific personal situations, check with FURS or a tax advisor, as the assessment of “activity vs. occasional” may vary in individual cases.