Latvia Wants to Allow Crypto Tax Payments in 2027
Latvia is tying the rollout of crypto tax payments to stricter tax rules and DAC8 reporting for service providers. The country wants to attract both more transparency and more crypto activity.
Key Takeaways
- Latvia may let residents pay taxes with crypto as soon as next year, after the Finance Ministry agreed to the plan.
- Parliament passed new rules on October 15 that tax crypto investments differently from individual trades.
- Crypto service providers have had to report transactions under DAC8 since January 1, 2026, while Latvia is positioning itself as a crypto-friendly country.
Latvia wants residents to be able to pay taxes with crypto as soon as next year, while the country is also tightening its crypto tax rules. The government sees that as part of a broader effort to attract crypto companies and investors.
Crypto Payments in Sight
According to Didzis Dejus, the prime minister’s adviser on strategic planning and the new economy, the Finance Ministry has agreed to the plan. Some technical work still needs to be done with a payment provider. When asked whether Latvians could pay taxes in crypto during the prime minister’s current term, Dejus said in Riga that he thinks it could happen next year.
Dejus did not name a provider and did not say which cryptos would qualify. Still, the plan fits into an earlier government line, which in May 2025 already talked about crypto payments for taxes and tokenization of other assets, such as real estate.
New Crypto Tax Rules
The timing lines up with a major change in the tax approach. On October 15, parliament passed legislation that taxes crypto investments differently than before. Instead of taxing every individual trade, the new system looks at withdrawals from crypto investment accounts once they are larger than the deposits.
There is also a one-time filing. Anyone who wants to settle old obligations can do so by paying 10% on the market value of the declared assets at the end of 2026. The filing can be submitted from April 1 through May 31, 2027, after which the tax is due by July 23 at the latest. Dejus said this could especially help people who bought crypto before sale years ago but no longer have proper records.
Why This Matters
For European crypto watchers, Latvia is interesting because the country is trying to combine tax transparency and crypto adoption at the same time. Since January 1, 2026, crypto service providers in Latvia have also had to report transactions to the tax authority under the DAC8 rules, which further tightens oversight of crypto income. That makes the move toward paying taxes in crypto even more notable, especially as Latvia clearly wants to position itself as a country that rolls out new crypto rules quickly.
