Lawmakers in Slovakia have adopted legislation that will reduce the tax burden for cryptocurrency holders in the country. Income derived from long-term investments in digital assets will also be relieved from healthcare taxes, the parliamentarians decided.
Investors in Slovakia to Pay 7% Tax on Income From Crypto Held More Than a Year
Members of the National Council of Slovakia, the country’s unicameral legislature, have approved an amendment that will reduce the taxation of cryptocurrencies, local media reported. Income from crypto assets sold more than a year after their purchase will be taxed at 7%.
Thus, the tax rate for long-term crypto holdings will be lower than the regular income tax rates. Slovaks pay personal income tax according to a progressive scale and the rate can be either 19% or 25%, for income exceeding a certain threshold.
The legislative proposal was submitted by the liberal Freedom and Solidarity party, the Democrats and the conservative Ordinary People and Independent Personalities party and backed by the We Are Family and Voice factions.
According to the updated law, gains from crypto investments will also be exempt from health taxes. Slovakia’s Ministry of Finance has estimated that the financial impact from the amendment will be around €30 million (almost $33 million) a year.
The tax exemptions come after earlier this month Slovak lawmakers sought to protect cash payments amid fears that the digital version of Europe’s common fiat currency, the euro, may eventually become the only means of payment across the eurozone.
The right to pay with cash for goods and services was enshrined in the country’s constitution through an amendment proposed by the right-wing and Euroskeptic We Are Family party. The latest legal changes will also exempt from taxation crypto payments for up to €2,400 ($2,600).
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