Taxation of income from cryptoassets in Slovakia and foreign structuring

Taxation of income from crypto assets is one of the most talked about regulatory topics in the crypto space. For Slovak taxpayers, the challenge is not only taxation at the level of individuals, but also at the level of legal entities. Thus, we advise clients on tax optimization options, challenges in using foreign jurisdictions as well as on the practicalities of setting up payment accounts, tax audits and the overall AML and KYC setup. Our role is thus to highlight all relevant legal, tax and practical considerations so that the client is able to make an informed decision.

Taxation of income from cryptoassets abroad

We try to point out to our clients the specifics of the legal and tax regimes in the selected countries. In situations where the client has a certain Slovak presence, our effort is to point out the limitations and challenges that this presence creates in connection with the search for and implementation of foreign tax and legal solutions. At the same time, in several situations, our great added value is to draw a line after crossing which the client is already exposed to the criminal consequences of its actions.

Thus, in relation to the taxation of crypt income and potential foreign structuring, we advise clients in the following areas:

• Tax optimization for income from crypto assets (hodler, but also trader);
• Foreign structuring (i.e., changes of residence, use of foreign companies);
• Taxation of specific income from staking, liquidity mining or yield farming;
• Setting up an ESOP structure at Airdrops from a tax perspective;
• When do I commit a tax offence when optimising taxation at the crypt and what is the practice?

Use of cryptoassets in business

Following the legislative changes effective from 2025 in the area of the use of crypto-assets in commercial transactions, of which we have been a long-standing advocate , there is more scope for the use of crypto-assets in commercial transactions. It can be assumed that the FTT will further strengthen this use in the long term. We have long assisted clients with the correct accounting and tax reporting (including VAT) for the use of crypto-assets in standard business transactions as a means of payment or utility asset, as this is still a relatively unknown area for accountants and tax advisers.