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

      Latvia's parliament, the Saeima, has approved significant amendments to the Law 'On Personal Income Tax' that will allow residents to declare their cryptocurrency holdings at a flat tax rate of 10%. This one-time declaration window is set to open from April 1 to May 31, 2027, enabling individuals to report their crypto assets as of December 31, 2026, based on their market value at that date.

      The new tax framework includes provisions for assets held in accounts with EU-licensed Crypto Asset Service Providers (CASPs) as well as those in self-custodied wallets. However, individuals currently involved in tax proceedings related to crypto income will not be eligible for this declaration window. Additionally, the amendments introduce an investment-account model for crypto-assets, where taxes will only apply when withdrawals exceed the original investment amount, rather than on individual trades.

      These changes align with the European Union's DAC8 directive, which aims to enhance transparency and compliance in cryptocurrency taxation. The Latvian government is expected to finalize supporting regulations by December 30, 2026, to facilitate the implementation of these new tax measures.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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