The Slovakian parliament voted on June 28 to pass a bill that lowers personal income tax for gains made from the sale of cryptocurrencies that have been held for at least a year. Tax rates will be reduced from the current sliding scale of either 19% or 25% to 7%. Furthermore, cryptocurrency payments up to 2400 euros, or roughly $2,622.20, won’t be taxed.
This amendment also exempts cryptocurrency income from a 14% health insurance contribution. The Ministry of Finance estimates that the amendment will have an annual financial impact of about 30 million euros.
The EU’s passage of its historic Markets in Crypto-Assets (MiCA) regulations a few weeks ago, alongside Slovakian parliament’s approval of another constitutional amendment that codifies the right of citizens to use cash as a form of payment, further demonstrates the trend of increasing cryptocurrency market regulation in Europe.
Slovakia is one of the 27 member states of the European Union and is making strides in the world of crypto. With this recent bill, cryptocurrency users in Slovakia can look forward to more tax exemptions.
