Latvia targets crypto tax payments and real-estate tokenization

Latvia could let residents settle personal tax bills with cryptocurrency as early as next year, as part of a push to attract crypto firms and investors. The Finance Ministry has agreed to the plan, though technical work with a payment provider is still unfinished, said Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy.

Asked at the UN:BLOCK Fintech conference in Riga whether Latvians would be able to pay taxes in crypto during the prime minister’s term, Dejus told CoinDesk: “I believe that will take place next year.” He also said, “We are not afraid to be the fastest country,” describing efforts to draw crypto business beyond licensing. CoinDesk has contacted the Finance Ministry for comment and had not received a reply at the time of writing.

The option would give crypto holders a way to use their assets to meet tax bills. It builds on plans announced in May 2025 to enable crypto tax payments and the tokenization of other assets, including real estate. Dejus did not name the payment provider or say which cryptocurrencies would qualify.

Parliament is changing how crypto investments are taxed. On Oct. 15 it passed legislation that taxes withdrawals from crypto investment accounts once they exceed the amount deposited, rather than taxing each trade. The law also introduces a one-time declaration: holders can settle past tax obligations by paying 10% of their declared assets’ market value at the end of 2026. Declarations can be filed from April 1 to May 31, 2027, with the tax due by July 23. Dejus said the measure would help people who bought crypto years ago but lack records of what they paid.

The payment plan’s timing could depend on the next government. Prime Minister Andris Kulbergs’ United List won the Oct. 3 parliamentary election and is expected to be renominated, but it still needs coalition partners. Latvia would not be the first government to accept crypto for taxes. Colorado started allowing crypto tax payments through PayPal in 2022, with the funds converted into dollars.