Lifestyle
Latvia Eyes Crypto Tax Payments as Early as 2027 as Parliament Overhauls Crypto Taxation
According to CoinDesk, an adviser to Latvia's prime minister says residents could pay personal taxes in crypto as soon as next year. Parliament has also passed a law changing how crypto holdings are taxed, with a one-time declaration window in 2027. Key points and what they mean for crypto holders in Latvia.
About 5 min read
What Happened
According to CoinDesk, Latvia may allow residents to pay personal taxes in cryptocurrency as early as next year, one of the policies aimed at attracting crypto businesses and investors. CoinDesk quotes Didzis Dejus, an adviser to the prime minister, as saying the Ministry of Finance has agreed to the plan, but technical work with a payment provider remains to be done.
Dejus told CoinDesk at the UN:BLOCK Fintech conference in Riga: "I believe that will take place next year." CoinDesk says it asked the Ministry of Finance for comment but had not received a reply at the time of publication. These statements have so far been reported only by CoinDesk and have not been independently confirmed by any other source.
The New Tax Rules Passed by Parliament
CoinDesk reports that on October 15 the Latvian parliament passed a bill that taxes crypto investment accounts only when withdrawals exceed deposits, rather than taxing each transaction.
According to CoinDesk, the bill also introduces a one-time declaration procedure: holders may pay 10% of the end-2026 market value of the declared assets to settle past tax obligations. The declaration period runs from April 1 to May 31, 2027, and the tax must be paid by July 23. Dejus said this could help people who bought crypto years ago but lack records proving their cost at the time.
| Item | What CoinDesk reports |
|---|---|
| Paying taxes in crypto | As early as next year; Ministry of Finance has agreed, technical work pending |
| New tax method | Taxed when withdrawals exceed deposits, not per transaction |
| Date passed by parliament | October 15 |
| One-time declaration | Pay 10% of the end-2026 market value of declared assets |
| Declaration period | April 1 to May 31, 2027 |
| Tax payment deadline | By July 23 |
| Not yet announced | Payment provider and eligible cryptocurrencies |
What It Means for Ordinary Readers
If the plan goes ahead, residents who hold crypto would have an additional way to pay their taxes. However, CoinDesk notes that Dejus did not name the payment provider or say which cryptocurrencies would be accepted, so the details remain unclear.
The timeline is also uncertain: CoinDesk notes that it may depend on the next government. Prime Minister Andris Kulbergs' United List won the October 3 parliamentary election and is expected to be nominated again, but it will still need coalition partners.
Background and Approaches Elsewhere
CoinDesk notes that the idea follows a plan announced in May 2025 to allow tax payments in crypto and to promote the tokenization of other assets such as real estate (converting rights in an asset into digital tokens that can be recorded and transferred on a blockchain). Dejus said: "We are not afraid to be the fastest country," and described efforts to attract crypto firms beyond issuing licenses.
CoinDesk also notes that Latvia would not be the first government to accept crypto for taxes: the U.S. state of Colorado has allowed crypto tax payments through PayPal since 2022, with the funds converted into U.S. dollars.
Frequently asked questions
Can Latvian residents pay taxes in crypto right now?
Not yet certain. According to CoinDesk, an adviser to the prime minister says it could happen as early as next year, and technical work with a payment provider is still pending.
How does the new law calculate tax on crypto?
According to CoinDesk, the bill passed by parliament taxes crypto investment accounts when withdrawals exceed deposits, rather than taxing each transaction.
What are the timing and rate of the one-time declaration?
CoinDesk reports that holders may pay 10% of the end-2026 market value of declared assets; the declaration period is April 1 to May 31, 2027, and the tax must be paid by July 23.
Which cryptocurrencies can be used to pay taxes?
Not announced yet. CoinDesk notes that Dejus did not say which cryptocurrencies would qualify or name the payment provider.
Has this news been officially confirmed?
The information comes from a single source, CoinDesk. CoinDesk says it asked the Ministry of Finance but had received no reply at the time of publication.
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