Latvia could allow residents to pay personal taxes with cryptocurrency as early as 2027, according to Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy. Speaking at the UN:BLOCK Fintech conference in Riga, Dejus said the Finance Ministry has agreed to the idea, although technical work with a payment provider still needs to be completed.

The planned payment option comes alongside a broader overhaul of Latvia’s crypto tax framework. Lawmakers have already approved changes that shift taxation away from individual trades and toward withdrawals from crypto investment accounts, while also creating a one-time declaration process for people seeking to settle past tax liabilities.

Government backing, but implementation still pending

Asked whether people in Latvia would be able to pay taxes in crypto during Prime Minister Andris Kulbergs’ term, Dejus said he believed it would happen next year. His remarks indicate political support for the measure, but not a fully finished rollout.

Dejus said the Finance Ministry has signed off on the plan. Even so, the government still has to complete technical arrangements with a payment provider before crypto can be used to settle personal tax bills.

He did not identify the provider involved and did not specify which cryptocurrencies might be accepted if the system goes live.

Part of a wider push to attract crypto activity

The proposal fits into Latvia’s wider effort to make itself more attractive to crypto companies and investors. Dejus described that push as going beyond licensing, and pointed to earlier government ambitions to move quickly in the sector.

In May 2025, Latvia announced plans to enable tax payments in crypto and to support tokenization of other assets, including real estate. Dejus said the country is prepared to move fast, framing the latest step as part of a broader policy direction rather than a standalone tax measure.

Parliament has already changed how crypto gains will be taxed

On Oct. 15, Latvia’s parliament passed legislation that changes the way crypto investment accounts are taxed. Instead of taxing each transaction, the new approach taxes withdrawals once they exceed the amount a user has deposited into the account.

The law also creates a one-time declaration scheme aimed at unresolved past obligations. Under that process, holders can settle earlier tax liabilities by paying 10% of the market value of their declared assets at the end of 2026.

Declarations under the scheme can be filed from April 1 to May 31, 2027, and the payment deadline is July 23. Dejus said this should help people who bought crypto years ago and no longer have records showing their original purchase prices.

Political timing and international precedent

The timeline for crypto tax payments may still depend on the shape of Latvia’s next government. Kulbergs’ United List won the parliamentary election on Oct. 3 and is expected to be nominated again, but it still needs coalition partners.

If Latvia proceeds, it would not be the first jurisdiction to accept taxes through digital assets. Colorado began allowing crypto tax payments through PayPal in 2022, with the funds converted into U.S. dollars before reaching the state.

For now, the clearest confirmed next steps are on the tax reform already passed: the one-time declaration window opens in 2027, while work on a crypto payment system continues separately with an unnamed provider.

Source: www.coindesk.com