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.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

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.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

Sponsored

WalletConnect Certified is not just a recognition program, it’s a movement to improve how users onboard, transact, and engage across the onchain ecosystem

article-image

In crypto investing, quantity has a quality all its own.

article-image

REX and Osprey prep to launch their Solana staking ETF

article-image

A 40% allocation to crypto today is safer than a 1% allocation was in 2021, Ric Edelman argues

article-image

The wallet doesn’t have enough memory for more apps and features but should still function, the company says

article-image

The proof-of-work L1 is betting on parallel-chain scaling, low fees, and a $50 million grant program to lure Solidity developers and tokenized RWA issuers