Latvia plans to let residents pay taxes with crypto by 2027
Latvia may let residents pay their personal taxes with cryptocurrency as early as 2027, according to Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy. He said the Finance Ministry has agreed to the plan, though technical work with a payment provider is still needed.
The announcement came as Latvia's parliament approved a separate change to how crypto gains are taxed. The two moves together form part of a wider effort to attract crypto companies and investors to the country.
What the adviser told CoinDesk
Speaking to CoinDesk at the UN:BLOCK Fintech conference in Riga, Dejus was asked whether Latvians would be able to pay taxes in crypto during the prime minister's term. "I believe that will take place next year," he said.
The idea is not new. Latvia first announced plans in May 2025 to accept crypto for tax payments and to tokenize other assets, such as real estate. Tokenization means turning a real-world asset into a digital token that can be traded on a blockchain, a shared digital record.
"We are not afraid to be the fastest country," Dejus said, describing efforts to attract crypto business beyond simply issuing licences.
How the new tax law works
On October 15, Latvia's parliament passed legislation that changes when crypto gains become taxable. Under the new rules, tax applies to withdrawals from crypto investment accounts once those withdrawals exceed the amount deposited, rather than to each individual trade. In plain terms, people would be taxed when they take out more than they put in, instead of paying tax on every buy or sell.
The law also creates a one-time declaration process. Holders can settle past tax obligations by paying 10% of the market value of their declared assets at the end of 2026. Declarations can be filed from April 1 to May 31, 2027, and the tax is due by July 23.
Dejus said the measure would help people who bought crypto years ago but do not have records of what they paid.
What is still unclear
Several details remain open. Dejus did not name the payment provider or say which cryptocurrencies would be accepted for tax payments. CoinDesk said it reached out to Latvia's Finance Ministry for comment but had not heard back at the time of writing.
Timing could also depend on the next government. Prime Minister Andris Kulbergs' United List won the October 3 parliamentary election and is expected to be renominated, but it still needs coalition partners.
Why this matters
The plan would give crypto holders a direct way to use their assets to meet tax bills, without first selling them for cash. The initiative is also intended to help position Latvia as a fast-moving fintech hub by attracting crypto firms and investors.
Latvia would not be the first government to accept crypto for taxes. The US state of Colorado began allowing crypto tax payments through PayPal in 2022, with the funds converted into dollars.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.