Latvia could allow residents to pay personal taxes with cryptocurrency as early as next year, in 2027. The initiative aims to attract crypto firms and investors, support asset tokenization and position Latvia as a fast-moving financial technology hub. Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy, said the Finance Ministry has agreed to the plan. Dejus said technical work with a payment provider remains.
Dejus spoke at the UN:BLOCK Fintech conference in Riga. Asked whether residents would be able to pay taxes in crypto during the prime minister's term, Dejus said he believed that would happen next year. The Finance Ministry did not respond to a request for comment by the time of publication. Dejus did not name Latvia's payment provider or specify which cryptocurrencies would qualify for tax payments.
The proposal would let crypto holders use crypto assets to meet tax bills. The proposal builds on plans announced in May 2025 to enable crypto tax payments and tokenize other assets, including real estate. Dejus said Latvia was not afraid to be the fastest country, describing efforts to attract crypto businesses beyond licensing.
Latvia's parliament passed legislation on Oct. 15 to tax withdrawals from crypto investment accounts once withdrawals exceed deposits, rather than taxing each trade. The law also introduces a one-time declaration process. Holders can settle past tax obligations by paying 10% of declared assets' market value at the end of 2026. Holders can file declarations from April 1 to May 31, 2027. The tax is due by July 23. Dejus said the measure would help people who bought crypto years ago but lack records proving the purchase price.
The payment plan's timing could depend on the next government. Prime Minister Andris Kulbergs' United List won the Oct. 3 parliamentary election but still needs coalition partners. Latvia would not be the first government to accept crypto for taxes. Colorado began allowing crypto tax payments through PayPal in 2022, with funds converted into dollars.