Latvia is preparing changes that could let individuals pay taxes with virtual assets as early as next year, according to comments made at a fintech conference in Riga. The move comes as the country also rewrites how gains from virtual-asset investing are taxed, signaling a broader effort to make Latvia more attractive to crypto businesses and investors.

The latest details were reported after Didzis Dejus, an adviser to the Latvian prime minister on strategic planning and the new economy, said the Finance Ministry had agreed to the tax-payment plan. He said the remaining work is technical coordination with payment service providers, although key operational details have not yet been made public.

Government backs concept, but rollout details are still missing

Speaking at the UN:BLOCK conference in Riga, Dejus said tax payments using virtual assets could become available next year. According to his remarks, the Finance Ministry has signed off on the proposal and the next steps involve implementation work with payment service providers.

He did not specify when the system would launch, which virtual assets might be accepted, or which service providers would take part. That leaves the proposal at an announced-plans stage rather than a fully defined program, even as officials present it as a near-term initiative.

Parliament shifts crypto tax treatment from transactions to withdrawals

Alongside the payment proposal, Latvia's parliament passed a bill on October 15 that changes the tax framework for virtual-asset investment accounts. Under the current approach, taxation applies to individual transactions.

The new system instead focuses on money taken out of a virtual-asset investment account. Tax would be triggered only when withdrawals exceed the original principal invested, replacing the transaction-by-transaction model with an account-based approach.

One-time program will address earlier tax liabilities

The legislation also creates a one-off disclosure mechanism for past tax obligations tied to virtual-asset investments. Investors will be allowed to settle those liabilities by applying a 10% tax rate to the market value of assets they hold at the end of 2026.

The filing window is scheduled to open on April 1, 2027 and close on May 31, 2027. Payment under the program would then be due by July 23, 2027.

Political timing may affect the launch

Even with the Finance Ministry's support, the timetable for accepting tax payments in virtual assets may still depend on Latvia's next government. The country held a general election on October 3, and coalition negotiations to form a new administration were still underway at the time of the report.

Dejus said Latvia wants to do more than simply license virtual-asset operators. His comments framed the tax-payment plan and the revised tax rules as part of a wider attempt to attract a larger share of the crypto industry, though the next confirmed step is the completion of government formation and the technical preparations needed for any launch.

Source: en.bloomingbit.io