Latvia changes how it taxes crypto; adviser says crypto tax payments could start next year

Latvia’s parliament, the Saeima, passed amendments to the personal income tax law in their final reading on 15 October that bring crypto investments into the country’s “investment account” system, the parliament’s press service said.

Under the change, tax becomes due when the amount withdrawn from an investment account exceeds the amount put in, rather than on each individual trade. Crypto-asset service providers licensed in the European Union will be able to offer the accounts.

The law also creates a one-time declaration. Residents can declare crypto they hold on 31 December 2026, with EU-licensed providers or in addresses they control themselves, and pay tax of 10% of its market value on that date. Those who do so will be treated as having met their declaration and tax obligations on those assets for the period up to the end of 2026, the Saeima said. The option is not open to people already facing criminal proceedings, tax audits or administrative proceedings connected with crypto income.

Declarations can be filed with the State Revenue Service from 1 April to 31 May 2027, and the tax is due by 23 July 2027.

Separately, Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy, told CoinDesk at the UN:BLOCK fintech conference in Riga that he believed residents would be able to pay personal taxes in cryptocurrency next year. He said the Finance Ministry had agreed, but technical work with a payment provider was unfinished. He did not name the provider or say which cryptocurrencies would qualify. CoinDesk said the ministry had not responded to its request for comment.

Dejus said the timing could depend on the next government. The United List party, which led the 3 October parliamentary election, still needs coalition partners, CoinDesk reported.