Latvia plans one-time 10% crypto tax declaration window in 2027

On October 15, 2026, Latvia's parliament adopted tax amendments establishing a one-time 10% crypto declaration window in 2027 for assets held as of December 31, 2026. The legislation introduces an investment-account model under EU MiCA rules, taxing gains only when withdrawals exceed deposits rather than on individual trades. Aligning with the EU DAC8 transparency directive, Latvia also aims to permit tax payments in crypto by 2027.

One-time 2027 crypto tax declaration window

• ▪Latvia's 2027 crypto declaration window accepts filings from April 1 to May 31, 2027, allows one correction until June 30, 2027, and requires tax payment into the unified account by July 23, 2027
• ▪Prime ministerial adviser Didzis Dejus stated that Latvia's 2027 crypto declaration window assists early crypto buyers who lack historical purchase records
• ▪Latvian residents can declare crypto assets held as of December 31, 2026, paying a flat 10% tax rate on their market value at that date
• ▪Latvia's 2027 crypto declaration window applies to self-custodied crypto addresses and accounts with EU-licensed providers, but excludes individuals already facing crypto-related tax proceedings
• ▪On October 15, 2026, Latvia's parliament, the Saeima, adopted amendments to the Law 'On Personal Income Tax' establishing a one-time crypto declaration window in 2027

Crypto investment-account tax model

• ▪Latvia's Cabinet of Ministers is scheduled to issue supporting implementation regulations for Latvia's crypto investment-account model by December 30, 2026
• ▪Under Latvia's new crypto investment-account model, personal income tax is incurred only when total account withdrawals exceed deposited amounts rather than on individual trades
• ▪Latvia's October 15, 2026 legislation permits an investment-account model for crypto-assets provided by EU-licensed entities operating under the Markets in Crypto-Assets (MiCA) regulation