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Crypto tax in Latvia 2026
Crypto sits squarely in the capital-asset list (renamed from 'virtual currency' in April 2025): disposals bear the flat 25.5%, with same-year losses netted against gains.
The oddity is for outsiders — to grow its crypto industry, Latvia exempts non-residents' gains on publicly circulated crypto assets from 2025 through 2027 — the relief applies only to disposals through businesses licensed to provide crypto-asset services under the EU framework.
At a glance
- top rate
- 25.5% flat
- entry band
- 25.5% from the first euro of net gain
- tax year basis
- Quarterly returns above EUR 1,000 of gains
- filing deadline
- 15th of the month after the quarter
- residency basis
- Residents taxed on worldwide crypto gains
- regime flag
- Non-residents: publicly circulated crypto gains exempt 2025–2027 — the relief applies only to disposals through businesses licensed to provide crypto-asset services under the EU framework.
Rates
Crypto taxation for individuals (2026)
| Rate | Base | Applies to |
|---|---|---|
| 25.5% | Net gain (same-year losses offset) | Residents disposing of crypto assets |
| 0% | — | Non-residents' gains on crypto assets in public circulation, 1 January 2025 – 31 December 2027 |
| 25.5% / 33% scale | Profits | Business-scale trading and mining as self-employment |
Thresholds & allowances
- Loss nettingSame-year, crypto-to-capital
Crypto losses offset capital gains of the year; no carryforward
Residency
Residency trigger
Residents include crypto gains in the quarterly capital-gains cycle and toward the EUR 200,000 surcharge base.
Non-resident treatment
Non-residents' exchange-traded crypto gains are exempt through 2027 as a market-development incentive; the old 3% purchase withholding on buying crypto from non-residents ended in 2025 — the relief applies only to disposals through businesses licensed to provide crypto-asset services under the EU framework.
Notes
- The 25.5% applies to conversions and disposals; getting paid in crypto is ordinary income at market value.
- The non-resident exemption is time-limited and policy-driven — check its status when 2028 approaches.
- Latvia's rate matches its general capital rate — no holding-period discounts, unlike neighbouring Estonia's account deferral.
- Quarterly filing bites active traders once quarterly gains pass EUR 1,000.
- Business-scale mining classification is not pinned by official guidance — the self-employment reading is an inference; verify.
FAQ
How is crypto taxed in Latvia?
As a capital asset at the flat 25.5% on net gains, with quarterly reporting above EUR 1,000 of gains; losses offset only same-year gains.
Why do non-residents pay nothing on Latvian crypto trades?
A deliberate incentive: gains of non-residents on publicly circulated crypto assets are exempt for the 3 years through end-2027, a policy aimed at attracting the crypto industry — the relief applies only to disposals through businesses licensed to provide crypto-asset services under the EU framework.
Figures: tax year 2026, compiled from public sources. Not tax advice.