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Latvia passes a crypto tax overhaul with a one-time 10% declaration, and an adviser says crypto tax payments could come in 2027
Summary
Latvia’s parliament, the Saeima, adopted urgent amendments to the personal income tax law in their final reading on Oct. 15 that extend the investment-account regime to crypto assets, so tax is due when withdrawals from the account exceed the amount put in rather than on each trade, according to the Saeima.
The law also lets residents declare crypto held on Dec. 31, 2026, at EU-licensed providers or in self-custody addresses and pay a one-time 10% tax on its market value that day, after which they are treated as compliant for the period through 2026, the Saeima said; declarations run from April 1 to May 31, 2027, with payment due by July 23, 2027.
Separately, Didzis Dejus, an adviser to the prime minister, told CoinDesk he believes residents will be able to pay personal taxes in crypto next year, saying the Finance Ministry has agreed to the plan but technical work with a payment provider remains.
CoinDesk said it had asked the Finance Ministry for comment without a reply at the time of writing, and that the payment plan’s timing could depend on the next government after the Oct. 3 parliamentary election.
Key facts
- The Saeima said that on Thursday, Oct. 15, it adopted in the final reading amendments to the law “On Personal Income Tax,” which had been designated urgent, to refine crypto-asset taxation and create a special declaration mechanism.
- Under the amendments, tax on crypto held in an investment account is due when the amount withdrawn exceeds the amount invested, not on each transaction, and investment-account services can be offered by crypto-asset service providers licensed in the EU, the Saeima said.
- Residents may declare crypto held on Dec. 31, 2026, in accounts at EU-licensed providers or in self-controlled addresses; a 10% rate applies to its market value on that date, and that value then becomes the acquisition cost for future tax calculations, according to the Saeima.
- The declaration option is not available to people already facing criminal proceedings, a tax audit, tax control or administrative proceedings over crypto income, the Saeima said.
- Declarations can be filed with the State Revenue Service from April 1 to May 31, 2027, corrected once until June 30, 2027, and the tax must be paid into the unified tax account by July 23, 2027; the Cabinet must issue rules for providers by Dec. 30, 2026, the Saeima said.
- CoinDesk quoted Didzis Dejus, adviser to the prime minister on strategic planning and the new economy, as saying “I believe that will take place next year” when asked whether Latvians could pay taxes in crypto during the prime minister’s term.
- CoinDesk reported that Dejus did not name the payment provider or say which cryptocurrencies would qualify, and that the plan builds on May 2025 proposals for crypto tax payments and tokenization of assets such as real estate.
- CoinDesk noted that Prime Minister Andris Kulbergs’ United List won the Oct. 3 parliamentary election and is expected to be renominated but still needs coalition partners.