Slovakia Lowers Bitcoin Capital Gains Tax Rate From 39% To 7%
Slovak parliament has accepted a new law lowering tax rate for the fiat profits from Bitcoin sales to just 7%. Until now the profits were taxed by a rate of 36-39% (together with variable health insurance fees).
- Bitcoin and other digital asset transactions will be taxed at a 7% rate after a year of holding or longer, per amendment approved by Slovak MEPs.
- In addition, the amendment states that Bitcoin and related payments amounting up to €2400 annually will not be taxed either.
- The new law comes into effect on January 1, 2024.
Reddit user Bocko_SVK laid out the country's rationale behind the tax increase and reduction:
"Basically no one was putting their crypto profits to taxes so this way people are motivated to acknowledge their gains. As a result the decrease in tax rate will probably increase the amount of tax collected significantly. The reason for the original high tax rate was the fact that cryptocurrencies were not defined properly and therefore it fall under some default bracket (so the tax was not intentionally high for crypto, it was just incompetence of our parliament)."
