The Slovak parliament voted on June 28 to approve a change that will reduce personal income tax on profits made from the sale of cryptocurrencies that the user has owned for at least one year. Click here for more information on cryptocurrency trading.
Taxes will be cut from the current sliding scale of 19% or 25% to 7%, a significant reduction. Cryptocurrency payments of up to 2,400 euros, or about $2,622.20, will not be taxed.
More tax breaks for cryptocurrency users in Slovakia
Additionally, the bill that was voted on exempts cryptocurrency income from a 14% contribution to health insurance.
A local Slovak media reported that the Ministry of Finance believes that the amendment will have a financial impact of around 30 million euros per year. A few weeks ago, the parliament approved another constitutional amendment that codified the right of citizens to use cash as a form of payment in light of the discussion on a digital euro.
Slovakia is one of the 27 nations that make up the European Union, which has been actively working on regulating the cryptocurrency market. On May 31, the EU passed its landmark Markets in Crypto Assets (MiCA) regulations, as previously reported here. The rules were developed with the intention of making Europe a hub for trading digital assets.