Latvia is set to let residents pay their personal taxes in cryptocurrency as early as 2027, after the country's Finance Ministry agreed to the plan. A new law passed by parliament on October 15 also changes how crypto profits are taxed — and offers long-time holders a one-time 10% deal to settle their past.
Key points:
- Crypto tax payments: Latvia's Finance Ministry has agreed to let residents pay personal taxes in crypto from 2027; the payment provider is still being set up.
- Simpler tax rule: the October 15 law taxes withdrawals from crypto investment accounts only once they pass the amount deposited — not every single trade.
- One-time 10% deal: holders can declare old crypto and pay 10% of its value at the end of 2026; declarations run April 1 to May 31, 2027, with tax due by July 23.
The payment plan was confirmed by Didzis Dejus, an adviser to the prime minister, at the UN:BLOCK fintech conference in Riga. Asked if people would be able to pay taxes in crypto during the prime minister's term, he said he believes it will happen next year. The idea builds on plans first announced in May 2025, which also covered tokenizing assets such as real estate, and it is part of a push to attract crypto firms and investors — Dejus said Latvia is not afraid to be the fastest country. Which cryptocurrencies will qualify, and which payment provider will handle the conversions, have not been named yet.
The tax change itself is already law. Until now, working out crypto tax in Latvia meant tracking trades; under the new system, tax applies when money taken out of an investment account goes above what was put in. The one-time declaration is aimed at people who bought crypto years ago and no longer have records to prove what they paid — they can declare what they hold, pay 10% of its market value at the end of 2026, and start clean.
Read also: South Korea's 22% Crypto Tax Faces New Fight — Exchanges Meet Tuesday?
What happens next?
One question is political timing. Prime Minister Andris Kulbergs and his United List party won the October 3 parliamentary election and he is expected to be renominated, but he still needs coalition partners — so the speed of the crypto payment rollout could depend on the next government. Latvia would not be the first to try this: the US state of Colorado has accepted crypto for tax payments since 2022 through PayPal, with the money converted into dollars.
For traders, the bigger signal is direction. A European Union country simplifying crypto tax and preparing to accept crypto at the tax office gives holders a legal way to use their coins for real bills, and it puts pressure on neighbouring states competing for crypto business. The next things to watch are the named payment provider, the list of accepted coins, and whether the 2027 start date survives the coalition talks.
— Crypto News Daily News Desk
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: CoinDesk
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