Latvia Plans to Allow Residents to Pay Taxes with Cryptocurrency by 2027, Reforming Crypto Tax Rules

Latvia plans to allow residents to pay personal income tax using cryptocurrency as early as 2027, with the Ministry of Finance having agreed to the proposal, although technical integration with payment service providers is still pending. This move builds on the cryptocurrency tax payment and asset tokenization plan announced in May 2025. On October 15, the Latvian parliament passed legislation to tax only the portion of withdrawals from cryptocurrency investment accounts that exceeds the initial deposit amount, replacing the previous practice of taxing each transaction, and introducing a one-time reporting mechanism: holders can pay 10% of the declared asset value by the end of 2026 to settle historical tax liabilities, with the reporting period from April 1 to May 31, 2027, and the tax payment deadline set for July 23.

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