Key Takeaways
- • Latvia's Saeima adopted urgent amendments to the Law 'On Personal Income Tax' on October 15, 2026, creating a one-time crypto declaration window in 2027 at a flat 10% tax rate on declared holdings.
- • Residents may declare crypto assets held as of December 31, 2026, with the 10% rate applied to market value on that date, covering both EU-licensed CASP accounts and self-custodied wallets.
- • Key deadlines: declarations April 1 to May 31, 2027; one correction allowed until June 30, 2027; payment due July 23, 2027, into the unified tax account.
- • Individuals already facing tax proceedings tied to crypto income are excluded from the scheme.
- • The amendments also permit an investment-account model for crypto, where tax applies only to withdrawals exceeding the invested amount, available only through MiCA-licensed EU providers.
Summary
Latvia's parliament, the Saeima, adopted urgent amendments to the Law 'On Personal Income Tax' on October 15, 2026, overhauling how the country taxes crypto-assets, according to Crypto Briefing. The headline feature is a one-time declaration window in 2027 that allows individuals to declare crypto holdings as of December 31, 2026, at a flat 10% tax on the market value of those assets at that date. The scheme covers assets held with EU-licensed Crypto Asset Service Providers (CASPs) as well as coins held in self-custodied addresses.
The timeline is fixed: declarations run from April 1 to May 31, 2027, one correction may be filed until June 30, 2027, and payment is due July 23, 2027, into the unified tax account. Individuals already facing proceedings over tax issues tied to crypto income cannot use the provisions.
The second major change concerns future taxation. The amendments permit an investment-account model under which tax is triggered only when withdrawals exceed the amounts originally invested, with individual trades inside the account not taxed separately. These accounts will be offered through EU-licensed providers operating under the Markets in Crypto-Assets regulation (MiCA), the EU's licensing and supervisory framework for crypto firms.
The measures align with the EU's DAC8 directive on automatic exchange of tax information and follow Latvia's earlier move to attract foreign crypto businesses, including a waiver of a 3% levy for non-residents covering 2025 to 2027. The legislation is not yet fully operational; the Cabinet of Ministers is expected to issue implementing regulations by December 30, 2026.
For residents with undeclared crypto, a flat 10% on market value offers certainty, though the rate is applied to current value rather than historical cost, which may be less favorable for holders near a peak. Because the snapshot date is December 31, 2026, year-end price movements will directly determine the amount owed. For crypto firms, the MiCA linkage is the larger consequence, as the investment-account model can only be offered by EU-licensed providers.
The timeline is fixed: declarations run from April 1 to May 31, 2027, one correction may be filed until June 30, 2027, and payment is due July 23, 2027, into the unified tax account. Individuals already facing proceedings over tax issues tied to crypto income cannot use the provisions.
The second major change concerns future taxation. The amendments permit an investment-account model under which tax is triggered only when withdrawals exceed the amounts originally invested, with individual trades inside the account not taxed separately. These accounts will be offered through EU-licensed providers operating under the Markets in Crypto-Assets regulation (MiCA), the EU's licensing and supervisory framework for crypto firms.
The measures align with the EU's DAC8 directive on automatic exchange of tax information and follow Latvia's earlier move to attract foreign crypto businesses, including a waiver of a 3% levy for non-residents covering 2025 to 2027. The legislation is not yet fully operational; the Cabinet of Ministers is expected to issue implementing regulations by December 30, 2026.
For residents with undeclared crypto, a flat 10% on market value offers certainty, though the rate is applied to current value rather than historical cost, which may be less favorable for holders near a peak. Because the snapshot date is December 31, 2026, year-end price movements will directly determine the amount owed. For crypto firms, the MiCA linkage is the larger consequence, as the investment-account model can only be offered by EU-licensed providers.
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