Country overview

#58

Slovenia

Country stats

Rating Points

175

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

1.1%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

140

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

23 100

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

51.3

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

Legally allowed

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Safe place

The overall level of security in a given country based on open data.

Crypto Salaries

No info

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

Good

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

Basic

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Wallet/Custody

This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.

Good

Medium

Bad

intro

According to the Wikipedia guide (1), Slovenia is ranked 88th in the world by GDP. That’s why local government needs to attract investments in the country. According to Advantage Austria (2), Slovenia has the lowest level of bureaucracy and taxation in the EU.

Security level

According to our rating, Slovenia has a safe place security level, with 75.8 points (from 100) for safety level in Numbeo's crime rating (3). The homicide level (4) is 0.4 per 100,000 inhabitants a year, and the firearm-related death level (5) is 1.91 per 100,000 inhabitants a year.

Crypto Payments

In Slovenia, there is an act regulating virtual currencies - Payment Services, Services of Issuing Electronic Money, and Payment Systems Act (6). This act doesn’t define crypto as a legal tender or money. However, according to the new tax law (7), paying in cryptocurrencies for goods and services in Slovenia is legal.

The Euro Introduction Act (7¹)(ZUE) defines banknotes and coins denominated in euros as legal tender in Slovenia (which points of sale are required to accept), and supervision of the implementation of this provision of the ZUE is conducted by the Market Inspectorate of the Republic of Slovenia. The cited provision of the ZUE does not place any constraints on merchants and points of sale in deciding to accept other means of payment, be they regulated (e.g., payment instruments, electronic money, foreign currencies) or unregulated (barter, new means of payment such as crypto-assets, etc.). It is, therefore, not illegal to accept crypto-assets as a means of payment in Slovenia (and in the EU).

Crypto Salaries

We haven’t found an exact legal act regulating crypto salaries in Slovenia. However, according to this thread (8) on Reddit, getting feedback from local Tax Authorities - FURS about taxation procedures is essential. Also, for local crypto community members, Getting a payment on your personal/business account on the centralized crypto exchange and then withdrawing it into fiat to the bank is legal. Also, we think that in some cases, it may be considered a barter exchange or payment by financial assets.

Legal

In May 2020, Slovenian legislators approved (9) AML legislation for crypto assets in the form of the Prevention of Money Laundering and Terrorist Financing Act (the ZPPDFT-1B). A list of VASPs should be published on the official government website (10). If you're interested in details of VASP regulation, you can check out Article 5 of the AML law (11).

According to the law, the Financial Administration of Slovenia (FURS) is the primary crypto regulator in the country.

Taxation

Tax name	Index
PIT tax Min	16
PIT tax Max	50
Corporate tax (CIT)	19
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	25
Wealth tax Min	0
Wealth tax Max	0

You may find a detailed overview of crypto taxation in the following documents:

-Full FURS Crypto Tax Guide in English (12)

-FURS official statement about crypto taxation (13)

PIT

According to Freemanlaw (14), PIT is applied for crypto income in the case of employment income or profits derived from a permanent business activity. Mining is also subject to the individual’s income tax.

According to rue.ee overview (15), in the case of applying PIT to crypto income, it has the following rates:

-If the taxable income doesn’t exceed 8,755 EUR – 16%

-If the taxable income is between 8,755 EUR and 25,750 EUR – 26%

-If the taxable income is between 25,750 EUR and 51,500 EUR – 33%

-If the taxable income is between 51,500 EUR and 74,160 EUR – 39%

-If the taxable income exceeds 74,160 EUR – 50%

CGT

CGT tax is applied in the case of conversion from crypto to fiat. The primary cause for it is the crypto trading income or crypto holding. CGT rate is 25% for holding crypto from 0 to 5 years – 25 %. The minimal CGT rate is 0% for 15+ years holders.

CIT

Based on Freeman's law overview for corporations, crypto taxation rules are also unclear based on FURS's statement that accounting treatment depends on “circumstances in the specific case.” Corporations must pay 19% CIT for capital gains.

According to local lawyer Mateja Babic (16), the government had 2022 a regulation proposal to apply a 10% flat tax to “any exchange of virtual currency for Fiat currency or purchase of goods or services with virtual currency.” Unfortunately, this proposal was rejected. Here is a detailed overview of the law on the Slovenska language that was denied in the local press.

Links

1)Wikipedia. List of countries by GDP (nominal)

2)Slovenia remains an attractive destination for Austrian investors. PDF-file

3)Crime Index by Country 2023 Mid-Year

4)List of countries by intentional homicide rate

5)List of countries by firearm-related death rate

6) Payment Services, Services of Issuing Electronic Money and Payment Systems Act

7)Golobovi ustavili kritpozakon in davčni postopek – 181. Doves stop crypto law and tax procedure - 181. Article

7¹) Zakon o uvedbi eura (ZUE)

8)Reddit. Being paid in crypto

9)New AML obligations for the crypto industry. Article

10)Official government website

11)Article 5 of the AML law

12)Full FURS Crypto Tax Guide in English

13)FURS official statement about crypto taxation

14)Freemanlaw. Slovenia and Cryptocurrency. Article

15)SLOVENIA CRYPTO TAX. Article

16)Slovenia: Change in taxation of gains from cryptocurrencies. Article

Interview with the Head of the Local Tax Office

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Latin America: Crypto Regulation Review and Recent Updates

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intro

Security level

Crypto Payments

Crypto Salaries

Legal

According to the law, the Financial Administration of Slovenia (FURS) is the primary crypto regulator in the country.

Taxation

Tax name	Index
PIT tax Min	16
PIT tax Max	50
Corporate tax (CIT)	19
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	25
Wealth tax Min	0
Wealth tax Max	0