ImportantLatvia Proposes Allowing Residents to Pay Taxes With Cryptocurrency as Early as 2027, Parliament Simultaneously Reforms Crypto Taxation Rules

Dizis Dejus, Strategic Planning Advisor to the Prime Minister of Latvia, stated at the UN:BLOCK fintech conference in Riga that the country plans to allow residents to pay personal income tax using cryptocurrency as early as 2027. The Ministry of Finance has given approval, though technical integration with payment service providers remains to be completed. This initiative builds on the crypto tax payment and asset tokenization plan announced in May 2025. The Latvian Parliament passed legislation on October 15, shifting the taxation framework to levy taxes on withdrawal amounts exceeding the initial deposit in cryptocurrency investment accounts, replacing the previous practice of taxing every individual transaction. A one-time declaration mechanism is also introduced: holders may settle all historical tax liabilities by paying a 10% tax based on the market value of declared assets by the end of 2026. The declaration period runs from April 1 to May 31, 2027, with the tax payment deadline set for July 23.

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