Latvia could let residents pay personal taxes with cryptocurrency as early as next year, according to Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy.
Speaking to CoinDesk at the UN:BLOCK Fintech conference in Riga, Dejus said the Finance Ministry has agreed to the plan, though technical work with a payment provider still needs to be completed. Asked whether Latvians would be able to pay taxes in crypto during the prime minister’s term, he said, 「I believe that will take place next year.」
CoinDesk said it had contacted Latvia’s Finance Ministry for comment and had not received a response by the time of publication.
Part of a broader push to attract crypto business
The proposal would give crypto holders a way to use their assets to settle tax bills. It also builds on plans announced in May 2025 to enable crypto tax payments and support the tokenization of other assets, including real estate.
Dejus said Latvia wants to attract crypto firms and investors and go beyond a strategy centered only on licensing. 「We are not afraid to be the fastest country,」 he said, describing the effort as part of a wider attempt to position Latvia as a fast-moving fintech hub.
Parliament changes the tax treatment of crypto investments
Latvia is also revising how it taxes crypto investment activity. On Oct. 15, parliament passed legislation that taxes withdrawals from crypto investment accounts once they exceed the amount deposited, instead of taxing each individual trade.
The law introduces a one-time declaration process as well. 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 must be paid by July 23.
Dejus said the measure would help people who bought crypto years ago but no longer have records showing what they originally paid.
Timing may depend on the next government
The rollout could still depend on the composition of the next government. Prime Minister Andris Kulbergs’ United List won the Oct. 3 parliamentary election and is expected to be nominated again, but it still needs coalition partners.
Not the first jurisdiction to accept crypto for taxes
If implemented, Latvia would not be the first government to accept cryptocurrency for tax payments. Colorado began allowing crypto tax payments through PayPal in 2022, with the funds converted into dollars.
Dejus did not identify the payment provider Latvia plans to use, and he did not say which cryptocurrencies would qualify for tax payments.
