Latvia Plans Crypto Tax Payments in 2027 and Overhauls Crypto Taxation

Latvia could let residents pay personal taxes with cryptocurrency as early as next year, as part of a push to attract crypto firms and investors. Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy, said the Finance Ministry has agreed to the plan, though technical work with a payment provider remains. Speaking at the UN BLOCK Fintech conference in Riga, he said he believes it will happen next year. He did not name the provider or say which cryptocurrencies would qualify. The timing could depend on the next government, since Prime Minister Andris Kulbergs’ United List won the Oct. 3 election but still needs coalition partners.

New Crypto Tax Law and One-Time Declaration

On Oct. 15, parliament passed a law that taxes withdrawals from crypto investment accounts once they exceed the amount deposited, instead of taxing each trade. The law also adds a one-time declaration process. Holders can settle past tax obligations by paying 10% of their declared assets’ market value at the end of 2026. Declarations can be filed from April 1 to May 31, 2027, with payment due by July 23. Dejus said this will help people who bought crypto years ago but lack records of what they paid.

Other Governments Accepting Crypto Taxes

Latvia would not be the first to try this. Colorado began allowing crypto tax payments through PayPal in 2022, with funds converted into dollars.