Key Takeaways
- • Latvia is seeking to let individuals pay taxes in virtual assets (cryptocurrencies) as early as 2027, according to Didzis Dejus, adviser to the Latvian prime minister, speaking at the UN:BLOCK fintech conference in Riga.
- • Latvia's parliament passed a bill on October 15, 2026 that shifts virtual-asset investment accounts to a framework taxing withdrawals only when they exceed the principal invested, replacing per-transaction taxation.
- • A one-time disclosure program lets investors settle past virtual-asset tax liabilities at a 10% rate on the market value of holdings as of end-2026, with filings from April 1 to May 31, 2027 and payment due by July 23, 2027.
- • Implementation timing could depend on the next government, as coalition talks remain pending following the October 3, 2026 general election.
Summary
The Latvian government is moving to allow individuals to pay taxes with virtual assets as early as next year, a step aimed at attracting cryptocurrency companies and investors. CoinDesk reported on October 18 that Didzis Dejus, an adviser to Prime Minister on strategic planning and the new economy, told the UN:BLOCK fintech conference in Riga that such payments could become available in 2027. Dejus said the Finance Ministry has agreed to the plan and that only technical preparations with payment service providers remain. He did not disclose a launch date, which virtual assets would be accepted, or which payment service providers would participate.
Latvia's parliament passed a bill on October 15 revising the tax framework for virtual-asset investments. Under the existing system, taxes are levied on individual transactions. The new framework instead taxes withdrawals from a virtual-asset investment account only when the amount withdrawn exceeds the original principal invested.
The legislation also introduces a one-time disclosure program to settle past tax liabilities tied to virtual-asset investments. Investors can clear those obligations by applying a 10% tax rate to the market value of assets held as of the end of 2026. The filing window runs from April 1, 2027, through May 31, 2027, and the tax must be paid by July 23, 2027.
The timing of the tax-payment system may depend on the formation of the next government. Latvia held a general election on October 3, and coalition talks remain pending. Dejus emphasized that Latvia intends to go beyond licensing virtual-asset operators and actively court the broader industry.
Latvia's parliament passed a bill on October 15 revising the tax framework for virtual-asset investments. Under the existing system, taxes are levied on individual transactions. The new framework instead taxes withdrawals from a virtual-asset investment account only when the amount withdrawn exceeds the original principal invested.
The legislation also introduces a one-time disclosure program to settle past tax liabilities tied to virtual-asset investments. Investors can clear those obligations by applying a 10% tax rate to the market value of assets held as of the end of 2026. The filing window runs from April 1, 2027, through May 31, 2027, and the tax must be paid by July 23, 2027.
The timing of the tax-payment system may depend on the formation of the next government. Latvia held a general election on October 3, and coalition talks remain pending. Dejus emphasized that Latvia intends to go beyond licensing virtual-asset operators and actively court the broader industry.
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