Latvia Changes Crypto Tax Treatment And Opens A 2027 Declaration Window

Latvia has passed a change to how crypto investment-account gains are taxed, according to TradingView reporting. The reform, which passed parliament on October 15, 2026, moves the taxable event from individual trades to what an investor ultimately withdraws from an eligible account. Under the approach described in reporting on the law, moving between crypto assets inside the account no longer automatically creates the same tax event as withdrawing more value than the amount contributed. Investors will still need records establishing their deposits and withdrawals to support calculations.

The legislation also addresses a practical problem for holders who acquired digital assets years ago and cannot reconstruct their original cost basis. It creates a one-time declaration mechanism allowing eligible holders to regularize historical positions at a 10% charge calculated on their value at the end of 2026. Applications are scheduled for April 1 through May 31, 2027, with payment due by July 23, 2027.

The proposed ability to pay taxes with cryptocurrency is a separate matter. Officials have discussed it as a potential step for 2027, but the eligible currencies, payment provider and operational arrangements have not been announced, and it should not be confused with the tax law parliament has already adopted.

For the wider EU market, the reporting suggests Latvia's move reflects governments adapting established tax concepts to assets that can be exchanged continuously. The practical value of the change will depend on account eligibility rules and recordkeeping requirements, which the available coverage does not fully detail.