Latvia has updated its approach to taxing gains from crypto investment accounts, shifting the focus from individual trades to withdrawals. The new legislation, passed on October 15, 2026, means that moving between crypto assets within an eligible account no longer triggers a tax event. Instead, taxes apply only when an investor withdraws more value than they originally deposited. Investors must maintain records to verify their deposits and withdrawals.
The reform also addresses a common issue for long-term crypto holders who lack records of their original cost basis. A one-time declaration process will allow eligible holders to regularize historical positions by paying a 10% charge based on the value of their holdings at the end of 2026. Applications for this process will be accepted from April 1 through May 31, 2027, with payment due by July 23.
Separately, Latvian officials are considering the possibility of allowing crypto tax payments, but no details have been finalized. This proposal should not be confused with the tax law that has already been adopted. The new legislation reflects broader EU efforts to adapt traditional tax frameworks to the continuous exchange nature of digital assets.