Key Takeaways
- • Latvia could allow residents to pay personal taxes in cryptocurrency as early as 2027, according to Didzis Dejus, an adviser to Prime Minister Andris Kulbergs on strategic planning and the new economy.
- • Parliament passed a law on October 15, 2026 taxing net withdrawals from crypto investment accounts above deposits, rather than taxing each individual trade.
- • The law includes a one-time declaration process: holders can settle past obligations by paying 10% of declared assets' market value at end-2026, with declarations filed April 1 to May 31, 2027 and tax due by July 23.
- • The Finance Ministry has agreed to the crypto tax payment plan, but technical work with a payment provider is still pending and the provider has not been named.
- • The timing depends on the next government, as the United List won the October 3 election but still needs coalition partners.
Summary
Latvia could allow residents to pay personal taxes with cryptocurrency as early as next year, as part of a broader push to attract crypto firms and investors. Didzis Dejus, an adviser to Prime Minister Andris Kulbergs on strategic planning and the new economy, told CoinDesk at the UN:BLOCK Fintech conference in Riga that he believes the measure will take place next year. According to Dejus, the Finance Ministry has agreed to the plan, though technical work with a payment provider remains. CoinDesk said it had contacted the Finance Ministry for comment but had not received a response at the time of writing.
The proposal coincides with a change in how Latvia taxes crypto investments. On October 15, parliament passed legislation taxing withdrawals from crypto investment accounts once they exceed the amount deposited, replacing a per-trade approach. The law also introduces a one-time declaration process allowing holders to 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 the tax due by July 23. Dejus said the measure would help individuals who bought crypto years ago but lack records to prove their original cost basis.
The crypto tax payment initiative builds on plans announced in May 2025 to enable crypto tax payments and the tokenization of other assets such as real estate. Dejus said the government aims to attract crypto business beyond licensing, stating, "We are not afraid to be the fastest country." The initiative is intended to support asset tokenization and position Latvia as a fast-moving fintech hub.
The timing of the payment plan could depend on the next government. Prime Minister Kulbergs' United List won the October 3 parliamentary election and is expected to be renominated, but it still needs coalition partners. Dejus did not name the payment provider or specify which cryptocurrencies would qualify for tax payments.
Latvia would not be the first government to accept crypto for taxes. Colorado began allowing crypto tax payments through PayPal in 2022, with funds converted into U.S. dollars.
The proposal coincides with a change in how Latvia taxes crypto investments. On October 15, parliament passed legislation taxing withdrawals from crypto investment accounts once they exceed the amount deposited, replacing a per-trade approach. The law also introduces a one-time declaration process allowing holders to 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 the tax due by July 23. Dejus said the measure would help individuals who bought crypto years ago but lack records to prove their original cost basis.
The crypto tax payment initiative builds on plans announced in May 2025 to enable crypto tax payments and the tokenization of other assets such as real estate. Dejus said the government aims to attract crypto business beyond licensing, stating, "We are not afraid to be the fastest country." The initiative is intended to support asset tokenization and position Latvia as a fast-moving fintech hub.
The timing of the payment plan could depend on the next government. Prime Minister Kulbergs' United List won the October 3 parliamentary election and is expected to be renominated, but it still needs coalition partners. Dejus did not name the payment provider or specify which cryptocurrencies would qualify for tax payments.
Latvia would not be the first government to accept crypto for taxes. Colorado began allowing crypto tax payments through PayPal in 2022, with funds converted into U.S. dollars.
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