Latvia plans to allow residents to pay personal taxes using cryptocurrency as early as next year.
According to CoinDesk, Didzis Dejus, the Prime Minister's Advisor for Strategic Planning and New Economy, stated at the UN:BLOCK Fintech conference in Riga that Latvia could allow residents to pay personal taxes in cryptocurrency as early as next year. The Ministry of Finance has approved the plan, but technical integration with payment providers is still underway, and neither the names of the payment providers nor the specific cryptocurrencies available for tax payments have been disclosed. This initiative continues the cryptocurrency tax payment and asset tokenization scheme for real estate and other assets announced in May 2025.
Additionally, the Latvian Parliament passed a cryptocurrency tax reform bill on October 15. Taxation will now apply only when the withdrawal amount from a cryptocurrency investment account exceeds the deposit amount, replacing individual transaction taxes, and introducing a one-time declaration mechanism. Holders may submit declarations between April 1 and May 31, 2027, to settle past tax obligations at 10% of the declared market value of their assets as of the end of 2026, with taxes due by July 23. Dejus stated that this measure assists investors who acquired cryptocurrencies years ago but lack proof of their cost basis.