• Slovakia Parliament voted on June 28th to reduce personal income tax for gains made from the sale of cryptocurrencies held for at least a year from 19% or 25% to 7%.
• Cryptocurrency payments up to 2400 euros, or roughly $2,622.20, won’t be taxed.
• Additionally, citizens are guaranteed the right to use cash as a form of payment and cryptocurrency income is exempt from health insurance contributions.
Slovakia Parliament Approves Lowering of Crypto Taxes
The Slovakian parliament voted on June 28th to approve an amendment that will lower personal income tax for gains made from the sale of cryptocurrencies held for at least a year. The taxes will be lowered from the current sliding scale of either 19% or 25%, down to 7%. Additionally, cryptocurrency payments up to 2400 euros (roughly $2,622.20) won’t be taxed.
Additional Tax Exempts
The voted-for bill also exempts cryptocurrency income from a 14% health insurance contribution. The Ministry of Finance believes this amendment will have an annual impact of about 30 million euros. Furthermore, another constitutional amendment was recently approved which codified the right of citizens to use cash as a form of payment in light of digital euro discussion.
Slovakia is one of the 27 member states which make up the European Union (EU). The EU has been actively working on cryptocurrency market regulation and passed its Markets in Crypto-Assets (MiCA) regulations on May 31st as reported here . MiCA was developed with the intention of turning Europe into a centre for trading digital assets and provides guidelines about token issuance, governance and operation processes within EU jurisdiction.
Crypto Adoption Growing in Europe
With these recent amendments approved by Slovakia’s parliament, it shows that crypto adoption is slowly growing within Europe as countries look for ways to encourage innovation and investment in their economies through new technologies like blockchain and cryptocurrencies.
The reduction in taxes could help motivate more people in Slovakia to invest in cryptocurrencies and may even attract foreign investors who are looking for better opportunities elsewhere now that MiCA regulations have been put into place across Europe. This could lead to increased economic growth across multiple industries within Slovakia and help propel them further into becoming a leader when it comes to crypto innovation throughout Europe.