# Latvia Adopts Crypto Tax Rules With 2027 Declaration Window

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/34908
Published: 2026-10-19T17:05:00.000Z
Updated: 2026-10-19T17:05:00.000Z
Section: Regulation

> Eligible investors can declare certain holdings at 10% of their year-end 2026 market value. Qualifying investment accounts will defer tax until withdrawals exceed deposits.

Latvia’s parliament adopted crypto tax amendments in a final reading on Oct. 15, allowing tax deferral in qualifying investment accounts and creating a one-time 10% declaration option for certain holdings.

Under the investment-account model, tax becomes due when withdrawals exceed the amount invested in the account. Investors would not be taxed on each transaction within it. Crypto-asset service providers licensed in the European Union may offer the accounts, subject to rules Latvia’s Cabinet of Ministers must issue by Dec. 30, 2026.

The separate declaration option covers crypto assets held on Dec. 31, 2026, either in an account with an EU-licensed provider or at an address controlled by the person declaring them. Those who use the option must pay 10% of the market value of the eligible assets they declare, measured on that date. The declared value then becomes the assets’ acquisition value for future tax calculations.

That charge applies only to assets declared through the one-time process. Latvia’s general personal income tax rate on gains from individual crypto sales is 25.5%. The investment-account rules address when tax is due.

For eligible filers who pay, the process satisfies tax filing and payment duties through Dec. 31, 2026, involving both the disclosed crypto and income used to obtain or exchange it. People already involved in criminal, tax-audit, tax-control or administrative-offense proceedings concerning crypto-asset income cannot use the option.

The two measures address different stages of an investor’s activity. The account rules govern transactions made within a qualifying account, while the declaration gives eligible holders a one-time way to establish a value for assets they hold at the end of 2026.

Declarations can be submitted to Latvia’s tax authority, the State Revenue Service, from April 1 through May 31, 2027. A declaration may be corrected once by June 30, 2027. The tax payment is due by July 23, 2027.