Latvia eyes crypto tax payments in 2027 as parliament overhauls crypto taxation

The proposal comes as Latvia changes how it taxes crypto investments. On Oct. 15, the country’s parliament passed legislation to tax withdrawals from crypto investment accounts once they exceed the amount deposited, rather than taxing each trade.

The law also introduces a one-time declaration process. Holders can 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 people who bought crypto years ago but lack records to prove what they paid.

The payment plan’s timing could depend on the next government. Prime Minister Andris Kulbergs’ United List won the Oct. 3 parliamentary election, and is expected to be renominated, but still needs coalition partners.

Latvia would not be the first government to accept crypto for taxes. Colorado started allowing crypto tax payments through PayPal in 2022, with funds converted into dollars.

Dejus did not name Latvia’s payment provider or say which cryptocurrencies would qualify to pay taxes.