Latvia’s parliament passed legislation on Oct. 15 to change how cryptocurrency is taxed, according to Techub News citing CoinDesk. Under the new framework, taxation will no longer be applied to every individual crypto transaction. Instead, tax will be charged on the portion of withdrawals from a crypto investment account that exceeds the amount originally deposited. The law also creates a one-time declaration process for holders who want to settle past tax obligations. They will be able to file between April 1 and May 31, 2027, and resolve prior liabilities at 10% of the market value of their assets at the end of 2026. Payment will be due by July 23. Latvian Finance Minister Dejus said the measure is intended to help holders who bought crypto years ago but cannot prove their original purchase records. Latvia also plans to allow taxes to be paid in cryptocurrency starting in 2027, though the payment provider and the list of eligible cryptocurrencies have not yet been disclosed.
Latvia’s parliament passed legislation on Oct. 15 to reform the way cryptocurrency is taxed, Techub News reported, citing CoinDesk.
Under the new rules, the country will stop taxing each individual transaction. Tax will instead apply to the portion of withdrawals from a crypto investment account that exceeds the amount deposited.
One-time declaration window
The law also introduces a one-time declaration process. Holders will be able to file between April 1 and May 31, 2027, and settle past tax obligations at 10% of the market value of their assets at the end of 2026. The tax must be paid by July 23.
Minister’s explanation and next step
Latvian Finance Minister Dejus said the measure is meant to help holders who bought cryptocurrency years ago but do not have records proving those purchases.
Latvia also plans to allow taxes to be paid in cryptocurrency starting in 2027. The payment provider and the types of cryptocurrencies that will qualify have not been announced.
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