Latvia’s parliament, the Saeima, approved two crypto tax measures on Oct. 15, creating a one-time filing route for eligible holdings and deferring tax in qualifying investment accounts.
Under the declaration measure, individuals can report eligible crypto assets held on Dec. 31, 2026, and pay tax equal to 10% of their market value on that date. Filings may be made with the State Revenue Service between April 1 and May 31, 2027. The option covers assets held with a crypto-asset service provider licensed in the European Union or at an address controlled by the filer.
Payment establishes the declared year-end value as the assets’ acquisition value for future tax calculations. It also fulfills tax filing and payment obligations through Dec. 31, 2026, concerning those assets and income used to obtain or exchange them. People whose crypto-asset income is already the subject of criminal proceedings, a tax audit, tax-control procedures or administrative-offense proceedings cannot use the option.
The investment-account measure changes when tax is collected. Transactions within a qualifying account are not taxed individually; tax becomes due when an investor withdraws more than the amount invested in the account. EU-licensed crypto-asset service providers may offer the accounts under requirements Latvia’s Cabinet of Ministers must set.
The State Revenue Service lists a 25.5% personal income tax rate on gains from individual crypto-asset disposals, in effect since 2025. The 10% payment applies specifically to assets included in an eligible one-time declaration.
Aiva Vīksna, chair of the Saeima’s Budget and Finance (Taxation) Committee, said the amendments respond to changing forms of investment and give residents a way to address crypto-related tax obligations.
The Cabinet of Ministers must set the account-provider requirements by Dec. 30, 2026. A filer may correct a declaration once by June 30, 2027, and must pay the tax by July 23, 2027.
