How is crypto taxed in Latvia?

Crypto tax in Latvia works through the capital gains part of personal income tax. When an individual sells crypto, or spends it on goods or services, the gain is taxed at 25.5% from 2025, according to the State Revenue Service (VID). Crypto earned through a registered business is treated as business income instead, as of October 2026.

What is Latvia's capital gains tax on crypto?

VID's guidance, updated in May 2026, says the gain is the disposal price minus the acquisition cost, which can include related fees. If the original cost cannot be shown, it is treated as zero. PwC confirms that virtual currency counts as a capital asset, so it falls under the 25.5% rate for capital gains.

Some transactions straddle the rate change. VID says deals started in 2024 and completed in 2025 are taxed at 20%, with an information report due by June 1 of the following year. An additional 3% applies when total annual taxable income, plus certain dividends, exceeds 200,000 euros.

A few other rules matter:

• Swaps. Exchanging one crypto-asset for another does not create a gain if no money, goods or services are received. The gain is measured when the final asset is sold, against the original cost.
• Cost method. For partial sales, people may use first-in, first-out or weighted average cost, and must keep the chosen method for at least 10 years. See what is crypto cost basis.
• Losses. Crypto losses can offset only crypto gains, not gains on shares or other capital assets, according to VID's 2026 guidance. More on this in crypto losses and taxes.

How do you declare crypto in Latvia?

Gains go on the capital gains declaration, form DK. If capital income in a quarter exceeds 1,000 euros, the form is filed by the 15th of the month after that quarter. Otherwise it is filed once a year by January 15. Tax is paid by the 23rd of the month the declaration is due. An annual correction form, GD, lets losses from other quarters offset gains and is due by February 1. NJORD Law Firm advises keeping records such as payment confirmations for at least five years.

How is crypto taxed by country, and where does Latvia fit?

Latvia taxes gains on sale but not on swaps, which is more lenient than countries that tax every exchange. VID says crypto that a person generates themselves, such as through mining, is business income when sold, and the business must be registered first. Latvia regulates crypto firms under the EU's MiCA rules, as covered in is crypto legal in Latvia. For other countries, see crypto tax around the world.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.