Slovakia’s parliament has recently approved a new bill that aims to foster cryptocurrency adoption and investment and significantly change the taxation regime for Bitcoin ownership in the country.
The bill, passed on June 28, 2023, includes a notable reduction in personal income tax on gains from the sale of cryptocurrencies held for at least one year. Previously subject to a sliding scale of either 19% or 25%, these taxes will now be set at a flat rate of 7%, representing a substantial decrease. Additionally, the bill introduces a tax exemption for cryptocurrency payments up to 2400 euros (approximately $2,622.20).
In addition to the tax revisions, the recently passed bill also addresses health insurance contributions related to cryptocurrency revenue. It exempts cryptocurrency earnings from the 14% health insurance contribution, further enhancing the attractiveness of the tax environment for Bitcoin owners in Slovakia.
The Ministry of Finance in Slovakia estimates that these tax reductions will have an annual financial impact of approximately 30 million euros.
This move demonstrates the Slovakian government’s recognition of the growing importance of cryptocurrencies and its commitment to establishing a supportive regulatory framework. Just before it approved the tax changes, Slovakia’s parliament approved a constitutional amendment that guaranteed citizens the freedom to use cash as a means of payment. This development aligns with the ongoing discussions surrounding the potential introduction of a digital euro, further underscoring Slovakia’s dedication to financial innovation and technological progress.
As a member of the European Union (EU), Slovakia is part of a broader landscape of evolving cryptocurrency regulations. The EU Parliament passed the Markets in Crypto-Assets (MiCA) laws on April 20, 2023, and this move has positioned Europe as a hub for digital asset trading. The introduction of MiCA has been widely welcomed by companies operating in the sector, as it provides much-needed regulatory clarity and fosters a conducive environment for digital asset innovation and growth.
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