Facing pressure for financial transparency, Slovenia is proposing a 25% flat tax on profits earned from crypto assets and derivatives. This new legislation, designed for implementation in early 2026, seeks to align the country’s digital asset taxation with global standards and increase clarity within the market. The measure will target realized profits, applied only when converting crypto to fiat currency or purchasing goods and services with digital assets. Notably, transfers between wallets belonging to the same individual remain tax-exempt, while exchanges and transactions within accounts remain unaffected. 25% flat rates on capital gains from crypto sales will apply. A simplified option for taxpayers allows them to pay a reduced 40% of their holdings’ value as of December 31st, 2025. This simplification aims to ease the reporting burden. Similarly, the proposed derivative tax law streamlines regulations by applying the same 25% rate across all gains, regardless of holding period. This change is aimed at reducing administrative costs and bolstering alignment with international financial norms. However, critics raise concerns about potential capital flight from the country due to a high tax rate. The final legislation will be subject to public feedback and parliamentary approval over the coming months.