Is Slovakia on the way to becoming a land of welcome for cryptocurrency enthusiasts? Following a bill adopted almost unanimously, income from the sale of cryptocurrencies held for at least 1 year will only be taxed at 7%. In addition, cryptocurrency payments up to 2,400 euros are now tax-free.
Slovakia passes crypto-friendly law
Under this new legislation which has already entered into force, the tax rate that applies to profits from the sale of cryptocurrencies is reduced to 7%. This represents a considerable reduction compared to at current declining tax rates of 19% or 25%.
However, to benefit from this reduced tax rate, it will be necessary to keep said cryptocurrencies for at least 1 year. The most active traders will therefore not be able to take advantage of it.
Besides, this law includes a provision that exempts cryptocurrency payments up to 2,400 euros from tax. A particularly surprising measure that will certainly delight businesses that have already adopted cryptocurrency.
A political group of the Slovak National Council has claimed that this law aims to “reduce the tax burden associated with the sale of digital assets, thus simplifying their use in daily life”. The Slovak Ministry of Finance predicts that this will have a financial impact of around 30 million euros per year.
This bill, which was moreover jointly tabled by the country’s two main political parties, was adopted almost unanimously by the Slovak deputies (112 votes for, 2 votes against).
In the long term, this initiative could likely prove beneficial for the country, which already hosts an impressive number of startups with a link to the blockchain industry. Either way, Slovakia is setting a significant milestone on the way to normalizing the use of crypto-assets in everyday life.
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Source: National Council of the Slovak Republic
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