Latvia could allow residents to pay personal taxes using cryptocurrency as early as 2027, as the country pursues policies aimed at attracting crypto businesses and investors. The Finance Ministry has agreed to the proposal, although technical arrangements with a payment provider still need to be completed, 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 expressed confidence that the initiative would move forward next year. Asked whether residents could pay taxes in cryptocurrency during the prime minister's term, he said, “I believe that will take place next year.”
Latvia's Finance Ministry had not responded to CoinDesk's request for comment at the time of writing. Dejus did not identify the payment provider involved or specify which cryptocurrencies would be eligible for tax payments.
Latvia Moves to Change Crypto Taxation
The proposed payment option comes as Latvia revises its approach to taxing cryptocurrency investments. On October 15, parliament passed legislation that changes when tax becomes applicable to withdrawals from crypto investment accounts. Under the new rules, withdrawals would be taxed when they exceed the amount originally deposited, rather than taxing every individual trade.
The legislation also establishes a one-time declaration process for holders seeking to settle previous tax obligations. Eligible taxpayers can declare their assets and pay 10% of their market value as of the end of 2026 to resolve past liabilities under the scheme.
The declaration window runs from April 1 through May 31, 2027, while the resulting tax payment must be made by July 23, 2027.
Dejus said the measure could benefit people who purchased cryptocurrency years ago but no longer have records showing their original acquisition costs. The declaration process is intended to provide a way for those holders to address their outstanding tax obligations.
Government Seeks to Attract Crypto Investment
Latvia's plans extend beyond changes to tax payments. The country announced initiatives in May 2025 to enable cryptocurrency tax payments and explore the tokenization of other assets, including real estate.
Dejus said Latvia was willing to move quickly to establish itself as a destination for crypto-related businesses. “We are not afraid to be the fastest country,” he said, describing efforts to attract the industry beyond licensing arrangements.
However, the implementation timeline could depend on the formation of Latvia's next government. Prime Minister Andris Kulbergs' United List won the parliamentary election on October 3 and is expected to be renominated, but it still needs to secure coalition partners.
Colorado Already Accepts Cryptocurrency for Taxes
Latvia would not be the first government to introduce cryptocurrency tax payments. Colorado began allowing residents to pay taxes using cryptocurrency through PayPal in 2022, with the digital assets converted into U.S. dollars.
Latvia's proposed system remains dependent on completing the technical arrangements with its payment provider. Details about supported cryptocurrencies and the provider itself have not yet been disclosed.
source: coindesk
Writer: Ethan Collins
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