Latvia passes crypto tax overhaul, weighs crypto tax payments

Latvia’s parliament approved a new crypto investment tax regime on Oct. 15, including a one-time declaration with a 10% tax on declared assets, while the government weighs accepting crypto for tax payments in 2027. The Saeima’s announcement confirms the law and its deadlines; the separate payment plan was reported by CoinDesk.

• 10% tax on declared assets’ market value at Dec. 31, 2026
• Declarations accepted April 1–May 31, 2027
• Tax payment due July 23, 2027

How will the new crypto investment tax work?

The new rules apply an investment account regime to crypto holdings. Under that system, tax becomes due when withdrawals from the account exceed the amount paid in, rather than after each individual trade. The account can be offered by a crypto-asset service provider licensed in the European Union.

That changes when investors calculate tax: buying and selling within the account does not itself trigger a tax bill under the new approach. The threshold is the amount withdrawn compared with the total invested. The law does not mean all crypto transactions are tax-free; tax is due once withdrawals exceed deposits.

The Cabinet of Ministers must issue rules by Dec. 30, 2026, setting requirements for crypto service providers that want to offer investment accounts. The Saeima said the amendments were adopted in their final reading after being treated as urgent.

Who can use the one-time declaration?

Individuals may declare crypto held on Dec. 31, 2026, either in accounts with EU-licensed service providers or at crypto addresses they control themselves. The tax is 10% of the declared assets’ market value on that date, and that value becomes their acquisition cost for future tax calculations.

Those who declare and pay will be treated as having met tax reporting and payment requirements for the declared assets and the income used to acquire or exchange them through Dec. 31, 2026. The option is unavailable to people already facing criminal proceedings, a tax audit, tax control or administrative offence proceedings related to crypto income.

Declarations go to Latvia’s State Revenue Service. A holder can amend a filing once, by June 30, 2027, after the initial filing window closes. The calculated tax must then be paid into the unified tax account by July 23.

Will Latvia accept crypto for tax bills in 2027?

That is a separate plan, and it has not been finalized. CoinDesk reported that Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy, said the Finance Ministry had agreed to the idea, but technical work with a payment provider remained. He said he believed the option would be available next year.

Dejus did not identify the provider or say which cryptocurrencies might qualify. CoinDesk said it had asked the Finance Ministry for comment but had not received a response when it published its report. The proposal’s timing could also depend on the next government.

The two changes would address different parts of crypto taxation: the enacted law sets how investment gains are taxed and lets holders settle past obligations, while the proposed payment option would let residents use crypto to pay tax bills. For now, only the tax overhaul has been passed; whether residents can make payments in crypto remains uncertain.

Sources and documents

• Saeima’s announcement — saeima.lv