Latvia overhauls crypto tax, eyes crypto tax payments in 2027

Latvia's parliament passed legislation on Oct. 15 changing how crypto investments are taxed: withdrawals from crypto investment accounts are now taxed once they exceed the amount deposited, rather than taxing each trade. The law also introduces a one-time declaration — holders can settle past tax obligations by paying 10% of their declared assets' market value at end-2026, with declarations accepted from April 1 to May 31, 2027 and tax due by July 23.

Separately, the Finance Ministry has agreed to a plan to let residents pay personal taxes in cryptocurrency as early as next year, per Prime Minister adviser Didzis Dejus, who said Latvia is not afraid to be "the fastest country" in attracting crypto business and supporting asset tokenization. The payment provider and which cryptocurrencies would qualify were not disclosed; the rollout could depend on the next government's coalition.