Latvia Targets 2027 for Crypto Tax Payments as Parliament Passes Related Legislation

ChainCatcher report: Latvia may allow residents to pay personal taxes in cryptocurrency by 2027 to attract crypto businesses and investors. Didzis Dejus, Advisor on Strategic Planning and New Economy to the Prime Minister, told CoinDesk at the UN:BLOCK Fintech conference in Riga that he believes this arrangement will be implemented next year. The country’s Ministry of Finance has approved the plan, though technical integration with payment service providers is still pending. The initiative builds on a proposal announced in May 2025, when Latvia first proposed accepting cryptocurrency for tax payments and promoting tokenization of assets such as real estate. Dejus stated that Latvia is not afraid of being the fastest-moving country and aims to attract more crypto business beyond just licensing. He did not disclose specific payment service providers or which cryptocurrencies would be accepted for tax payments. Meanwhile, on October 15, Latvia’s parliament passed legislation to tax withdrawals from crypto investment accounts only if they exceed the amount deposited, rather than taxing each individual transaction. The law introduces a one-time reporting mechanism: holders can settle past tax obligations by declaring 10% of their asset value as of the end of 2026. The reporting period runs from April 1 to May 31, 2027, with taxes due by July 23. Dejus said this measure will assist individuals who purchased cryptocurrency years ago but lack cost basis records. The timeline for the tax payment plan may depend on the next government; the United List, led by Prime Minister Andris Kulbergs, won the parliamentary election on October 3 and is expected to be renominated, though it still requires coalition partners.