At a glance

  • Latvia’s parliament, the Saeima, passed amendments to the personal income tax law on Thursday 15 Oct that let residents declare crypto they hold on 31 Dec 2026 and pay 10% of its market value, the Saeima’s press service said. Declarations open on 1 April 2027 and the tax is due by 23 July 2027.
  • The same law brings crypto into Latvia’s investment-account regime, under which tax falls due when the amount withdrawn from the account exceeds the amount paid in, not on each trade.

The amendments were adopted in the final reading under the urgent procedure, by 70 votes to 2 with 5 abstentions, according to the vote record compiled by TavsDeputats.

What the law says

Investment accounts for crypto can be offered by crypto-asset service providers licensed in the European Union, the Saeima said. That points to firms authorised under MiCA, the EU’s crypto rulebook (what MiCA is). The Cabinet of Ministers must issue rules for those providers by 30 Dec 2026.

The one-off declaration covers crypto held on 31 Dec 2026 either with an EU-licensed provider or in addresses the holder controls. The declared value at that date becomes the asset’s acquisition cost for future tax calculations.

People who declare and pay are treated as having met their declaration and tax obligations for the declared assets, and for the income used to buy or swap them, for periods up to 31 Dec 2026, according to the Saeima. The option is closed to anyone already facing criminal proceedings, a tax audit, a tax inspection or administrative-offence proceedings over crypto income.

Declarations go to the State Revenue Service between 1 April and 31 May 2027. Each can be corrected once, by 30 June 2027.

What its backers say

“Financial markets are developing fast, so tax rules must also be able to adapt to new types of investment,” said Aiva Vīksna, who chairs the Saeima’s budget and finance (taxation) committee, in remarks published with the vote (our translation).

The bill was tabled by seven deputies, including Vīksna and Evika Siliņa, according to TavsDeputats.

Didzis Dejus, an adviser to the prime minister, told CoinDesk the declaration is meant for long-time holders who no longer have proof of their purchase prices. He also said residents could be able to pay personal taxes in crypto from next year, though he named no payment provider or eligible coins, CoinDesk reported. That plan is not part of this law, and its timing could depend on the government formed after the 3 Oct election, CoinDesk noted.

What is still open

The Saeima’s summary does not say when the investment-account rules take effect for crypto, and much depends on the Cabinet’s rules for providers. It is also not yet clear which EU-licensed firms will offer such accounts to Latvian residents.

Latvia is the latest EU state to rework crypto taxation this autumn. France’s National Assembly voted on 16 Oct to tax swaps into MiCA stablecoins from 2027 (France’s stablecoin-swap tax vote), and Greece has drafted a 10% tax on crypto gains (Greece’s draft 10% crypto gains tax).

What happens next

A law passed by the Saeima takes effect only after the President proclaims it and it is published in the official gazette, Latvijas Vēstnesis. We had not found it published as of Monday morning. After that, the next dates are the Cabinet’s provider rules by 30 Dec 2026, the 31 Dec 2026 valuation date and the filing window that opens on 1 April 2027.

This is a news report on legislation, not tax advice.

This article is for information only and is not investment advice.