Latvia is moving forward with plans to allow residents to pay personal taxes using cryptocurrency as early as next year. The initiative, announced by PM adviser Didzis Dejus, aims to position Latvia as a leading fintech hub and attract crypto businesses. While the Finance Ministry has agreed to the plan, technical work with a payment provider is still pending.
The move builds on Latvia's broader strategy to embrace crypto, including plans announced in May 2025 to enable crypto tax payments and the tokenization of assets like real estate. Dejus emphasized Latvia's willingness to be a fast-moving player in the crypto space, going beyond just licensing.
Latvia's parliament recently passed legislation to tax crypto withdrawals that exceed deposits, rather than taxing individual trades. The new law also introduces a one-time declaration process, allowing holders to 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.
The timing of the crypto tax payment plan could depend on the next government, as Prime Minister Andris Kulbergs' United List won the Oct. 3 parliamentary election but still needs coalition partners. Latvia would not be the first country to accept crypto for taxes, following Colorado's 2022 initiative.