Slovakia lowers taxes on crypto profits

The bill will reduce taxes on the sale of cryptocurrencies held for at least 12 months from as much as 25% down to 7%

article-image

Slovakian President Zuzana Čaputová | Alexandros Michailidis/Shutterstock modified by Blockworks

share

Slovakia overwhelmingly passed a bill amending its income tax laws to have a far more favorable rate for those trading cryptocurrencies. 

Slovaks will now be taxed 7% for whatever profits they make selling crypto they have held for at least a year. Previously, the rate was either 19% or 25%. 

This is similar to how capital gains taxes work, but this only pertains to crypto. The idea of taxing crypto like a stock or any other security naturally brings up questions about how the asset should be defined. The SEC, for example, is solidly in the “most crypto assets are securities” camp. However, if nations regarded crypto assets as being more akin to fiat currencies (i.e. commodities), the tax policies could be far different.

The bill will exempt crypto income from a 14% health insurance tax — as long as it isn’t marked as the business property of an investor, according to the bill

The Slovak National Council issued a statement explaining that the bill’s goal is to “to reduce the tax burden in connection with the sale of virtual currencies, thereby simplifying their use in everyday life.”

The bill was passed 112-2, though 144 lawmakers voted present, essentially declining to make their voice heard on the matter.

With the passage of the bill, Slovakia could become another desired European destination for those eager to trade crypto. This is particularly noteworthy considering that Portugal, previously recognized as a crypto tax haven, has recently opted to adjust its approach in this regard.

The country’s 2023 budget, which was passed last November, allows the government to levy a 28% tax on income from digital assets that are held for under a year. Past the 365-day mark, citizens can profit off of crypto tax free, still making Portugal a desirable place for long-term holders.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates.jpg

Research

The L2 ecosystem has evolved into a complex landscape, with over $17B in market value and $50B in secured assets. While traditionally seen as high-beta plays on Ethereum, no L2 token achieved a beta higher than 1.0 relative to ETH in 2024. Furthermore, token dilution significantly impacted the sector, with a 1% increase in circulating supply corresponding to a 1.4% decrease in returns.

Key figures including Vitalik Buterin struggle to communicate the network’s core mission in an era of memecoin-minimized attention spans

article-image

World Liberty Financial has been busy buying crypto ahead of its launch

article-image

Trump’s token is setting the “tone” for crypto, Empire co-host Santiago Santos said

article-image

A pair of fundraises by Tapestry and Oh both came with expansive ideas about the future of AI and the role of humans in it

article-image

The Calamos Bitcoin Structured Alt Protection ETF — January is set to offer “systematic risk management” across its roughly one-year outcome period

article-image

Crypto industry elites (and a journalist or two) donned black tie at the Crypto Ball Friday night