Latvia Introduces One-Time 10% Crypto Tax Declaration Window for 2027

Latvia is taking significant steps to regulate cryptocurrency taxation with a new initiative that offers residents a one-time opportunity to declare their crypto assets. On October 15, 2026, the Saeima, Latvia's parliament, enacted urgent amendments to the Law 'On Personal Income Tax', introducing a flat 10% tax on declared holdings.

The declaration window will be open from April 1 to May 31, 2027, allowing individuals to report their crypto assets valued as of December 31, 2026. This initiative applies to assets held in accounts with EU-licensed Crypto Asset Service Providers (CASPs) as well as those in self-custodied addresses. A correction to declarations will be permitted until June 30, 2027, with tax payments due by July 23, 2027.

However, individuals currently facing tax proceedings related to crypto income will not be eligible for this new provision. Additionally, the amendments introduce an investment-account model for crypto-assets, where taxation occurs only upon withdrawals exceeding the original investment amount, rather than on each individual trade.

This legislative move aligns with the EU's DAC8 directive aimed at enhancing transparency and compliance in crypto taxation. It also reflects Latvia's ongoing efforts to attract foreign crypto businesses by waiving a 3% levy for non-residents from 2025 to 2027. Supporting regulations are expected to be issued by the Cabinet of Ministers by December 30, 2026, to facilitate implementation.