Latvia is preparing to let residents pay personal taxes with cryptocurrency as early as 2027, combining the proposed payment system with a broader overhaul of how crypto investments are taxed. The plan is part of an effort to attract digital-asset companies and investors, while supporting the country’s ambitions in fintech and asset tokenization.
Didzis Dejus, an adviser to the Latvian prime minister on strategic planning and the new economy, said the Finance Ministry had agreed to the idea. Technical discussions with a payment provider are still required, however, and the provider and eligible cryptocurrencies have not been identified.
Asked at the UN:BLOCK Fintech conference in Riga whether crypto tax payments would be available during the prime minister’s current term, Dejus said he believed that would happen next year. The comments were reported by CoinDesk. Latvia’s Finance Ministry had not responded to CoinDesk’s request for comment at the time of publication.
Proposed crypto tax payments
If implemented, the initiative would allow crypto holders to use digital assets to settle personal tax bills. A payment provider would presumably be involved in processing the transaction, although the government has not yet disclosed which company would handle the service or whether payments would be accepted in one cryptocurrency or several.
The proposal follows plans announced in May 2025 to enable tax payments in crypto and to encourage the tokenization of assets, including real estate. Tokenization generally refers to representing ownership or rights connected to an asset through digital tokens recorded on a blockchain. Latvia’s government is presenting the initiative as part of a wider attempt to move beyond licensing crypto companies and establish the country as a fast-moving fintech center.
Dejus said Latvia was not afraid of being the fastest country in this area. The timing of the payment system could still be affected by political developments. Prime Minister Andris Kulbergs’ United List won the parliamentary election on Oct. 3 and is expected to be renominated, but it must still secure coalition partners.
Latvia would not be the first government to provide a crypto tax payment option. Colorado began allowing such payments through PayPal in 2022, with the cryptocurrency converted into U.S. dollars.
Parliament changes how crypto is taxed
The payment proposal comes alongside a major change to Latvia’s tax treatment of crypto investments. Parliament passed the relevant legislation on Oct. 15.
Under the new approach, taxation would focus on withdrawals from crypto investment accounts when those withdrawals exceed the amount deposited. This differs from taxing individual trades. The model is intended to address the amount extracted from an account rather than requiring every transaction to be assessed separately.
The legislation also includes a one-time declaration mechanism for people seeking to resolve earlier tax obligations. Holders may declare their assets at market value at the end of 2026 and settle the related obligation by paying 10% of that declared value.
Declarations are scheduled to be submitted from April 1 through May 31, 2027. Any tax due under the mechanism must be paid by July 23, 2027.
Dejus said the measure could help people who bought crypto several years ago but no longer have documentation showing the original purchase price. Without records of acquisition costs, calculating taxable gains can be difficult. The one-time process gives those holders a defined route to declare assets under the new system, according to the adviser.
Current market picture
Moneyiar market data at 22:08 on Oct. 19, 2026, showed mixed performance among the listed digital assets:
- Aethir (ATH) was priced at $0.0054007771, up 1.65% over 24 hours but down 11.89% over seven days.
- Walrus (WAL) stood at $0.0381890028, down 1.43% in 24 hours and up 7.16% over seven days.
- ONEchain (ONE) traded at $0.1019686632, rising 2.15% over 24 hours while falling 18.57% over the week.
- DEAPcoin (DEP) was $0.0009897724, down 0.07% over 24 hours and 0.42% over seven days.
These prices and percentage changes are Moneyiar data recorded at the stated time and are separate from Latvia’s tax-policy announcement.
What remains unresolved
The government’s stated target is an introduction as early as next year, but several practical details remain open. Latvia has not named the payment provider, specified the cryptocurrencies that would qualify, or provided a final launch date. The technical work needed to connect the tax system with a provider also remains unfinished.
The next government’s formation could influence the schedule. Although the United List is expected to be asked to form or lead the government after its election victory, coalition negotiations are still necessary. Until those issues are settled, the plan remains a proposed framework rather than an operating tax-payment service.
