Latvia may become one of the first countries in the world that will allow paying personal income tax in cryptocurrency. The initiative is in line with the strategy to attract crypto companies and investors. Latvia has adjusted its crypto tax rules, introducing a tax on withdrawal of crypto assets from exchange platforms that exceed the cost basis of the assets. In addition, the government allows a one-time crypto tax payment for existing obligations.
Source: x.com
According to Didzis Dejus, an economic development adviser to the Latvian Prime Minister, the government expects to enable crypto tax payments in the country by 2027. Dejus spoke at the United Nations Fintech conference in Riga, adding that the government had selected a crypto payment provider but did not disclose the details.
These include the list of accepted cryptocurrencies for tax payments. The decision builds upon the announcement in May 2025 of the acceptability of crypto payments for taxes and the idea of tokenize real assets to raise funds through the tokenization of real estate.
Dejus further noted that they are not afraid to take the lead and become the first country in the world to do so. On October 15, the Parliament of Latvia adopts a law that fundamentally changes the taxation of crypto assets. Instead of taxing each transaction, the number of transactions will be taxed when withdrawn from the account if they exceed the cost basis.
In addition, the law allows taxpayers who cannot provide documentation on the cost basis of crypto assets to choose another method of taxation. It is possible to pay a one-time tax of 10% of the value of the crypto assets on the books at the end of 2026. The declaration of this tax is available from April 1 to May 31, 2027, with the payment due by July 23.
The implementation of Latvia’s strategy is conditional upon forming a government in the near future. Indeed, it is not the first country to demonstrate tolerance toward cryptocurrencies. Thus, for example, in the United States, the state of Colorado began accepting crypto payments from taxpayers in 2022, with the possibility of using the services of PayPal, which transferred the money in the form of dollars.
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