Deputies in Slovakia voted 112 to 2 to pass a bill that approved new legislation aimed at reducing crypto taxes. The bill also gave holders of crypto-related assets access to lower taxes after the sale of their cryptocurrencies. With the new law, people who hold their digital currencies will be able to sell them and pay 7% tax on the profit they make from their assets. This rate is lower than the usual income tax rate in the country. 

Another incentive the legislation gives cryptocurrency holders in the country is that returns up to 2,400 euros are exempt from taxes.

Amendment impact of 30 million euros

A report by the Slovak news site, Dennikn said that the bill was proposed by SaS, Democrats, and OĽaNO, with Sme Rodina and Hlas  backing them. It said that the Finance Ministry has estimated that the impact of the legislation will be up to 30 million euros a year.

In addition to being exempt from health tax, the report said,

“The maximum amount of funds that can be invested in long-term investment savings in one calendar year will be doubled. The amount will increase from the current 3,000 euros to 6,000 euros.”

Incentives for Circle of Investors

The approval said that the circle of investors is allowed to invest in alternative funds. It also increased the participation of qualified investors by 10%. This means that this category of investors can invest up to 30% of their funds instead of the current 20%. The amendment sponsored by Jana Žitňanská also gave reprieve to charities by raising the threshold of their tax exemption to 30,000 euros.