Latvia updates crypto tax rules and declaration process

• Latvia’s parliament has approved changes to cryptocurrency taxation and introduced a one-time declaration mechanism.
• The changes update how income from crypto-asset transactions is taxed under Latvian law.
• The new rules clarify tax treatment for crypto holders and establish a process for declaring eligible assets.

Latvia’s parliament has approved new cryptocurrency tax rules, including a one-time declaration scheme and an investment-account option.

The investment-account regime will defer tax until withdrawals exceed the amount invested, rather than taxing each transaction individually.

“Tax regulation must be able to adapt to new forms of investment,” according to Budget and Finance (Taxation) Committee Chair Aiva Vīksna.

The one-time declaration scheme will apply a 10% tax to declared crypto-assets’ market value on 31 December 2026.

Eligible residents can submit declarations from 1 April to 31 May 2027 and amend them once by 30 June.

The declaration covers crypto-assets held with EU-licensed service providers or in wallet addresses controlled by individuals on 31 December 2026.

People already facing relevant criminal proceedings, tax audits, tax controls or administrative offence proceedings cannot use the declaration scheme.

The changes establish a route for declaring eligible crypto-assets and require the resulting tax to be paid by 23 July 2027.