Crypto tax in Latvia in 2026

7 min read · Published 6 October 2026 · Updated 7 October 2026

25.5% on gains from selling coins for money, while coin-to-coin swaps are not taxed. If gains exceed €1,000 in a quarter, a return is filed every quarter. How to calculate it and what to declare.

Item	In 2026
Rate for individuals	25.5% on gains
Coin-to-coin swaps	not taxed
Holding period relief	none
Quarterly return	if gains for a quarter exceed €1,000, ~$1,130
Losses	reduce gains of the same year
Residency	183 days in 12 months or a permanent home
Data exchange	EU platforms report to tax authorities

Data checked 2026-10-07

Latvia taxes individuals' gains from selling crypto as capital gains. Since 2025 the rate has been 25.5%. The Latvian tax service has expressly confirmed that swapping one coin for another is not taxed: tax arises when coins are sold for euros or other money or used to pay for goods and services.

There is no holding period relief: coins sold after a week or after five years are taxed the same. Gains and losses for the year are netted, and with small gains the return is filed once a year. The tax service has updated its guidance on sales of crypto-assets, making it more detailed.

Who pays crypto tax in Latvia

A Latvian tax resident is someone with a permanent home here or who spends 183 days or more in the country in any 12 months. A resident pays tax on worldwide income, including gains on foreign exchanges.

A non-resident pays tax in Latvia only on Latvian income. For newcomers the date residency begins matters: coins bought before the move keep their purchase price, but the gain is calculated on sale as a resident.

Latvia is an EU country, and for non-EU citizens residency is usually tied to a residence permit. When changing country it is important to exit your previous residency correctly, especially if that country taxes its residents on worldwide income.

More on salary rates, contributions and taxes for business owners on the Latvia taxes page.

How to calculate crypto income

Tax is calculated on the gain: sale price minus purchase price and transaction costs. The rate is 25.5%. If gains for a quarter exceed €1,000, about $1,130, the return is filed and tax paid by the 15th of the month after the quarter. Otherwise a return by 15 January of the following year is enough.

At year end gains and losses on assets of the same category are netted and tax is recalculated in the annual return. Coin-to-coin swaps create no tax, so it is important to keep the purchase price history of the original coins.

Records are kept per exchange and wallet: in an audit the tax office asks for trade statements and proof of purchase prices.

Situation	Calculation	Tax
Bought coins for $10,000, sold for $15,000	$5,000 × 25.5%	$1,275
Swapped bitcoin for ether with a $3,000 dollar gain	coin-to-coin swap	$0
A $8,000 gain and a $3,000 loss in one year	($8,000 - $3,000) × 25.5%	$1,275
A $900 gain in a quarter	return by 15 January	$230
Sold coins bought before the move for $4,000 at $6,000	$2,000 × 25.5%	$510

Amounts in US dollars at the European Central Bank rate on 6 October 2026; tax rounded to the dollar.

In Latvia 25.5% on gains and a quarterly return when gains are large

The usual mistakes are in three places: missing the quarterly return when gains for a quarter exceed €1,000, calculating tax on every coin-to-coin swap although it only arises on conversion to money, and not netting gains and losses for the year, so tax is overpaid. We collect trades from all exchanges, calculate gains under the tax office rules, file the quarterly and annual returns and prepare a package for the bank when cashing out.

The cost of support depends on the number of trades and platforms; a manager will calculate it in the chat.

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Mining and staking

Mining carried on regularly as an activity is taxed as business income on the income tax scale: 25.5%, and 33% on income above the threshold, with equipment and electricity costs deducted.

Staking rewards and other coins received without a purchase are assessed separately by the tax office, so it is important to record the date and value of each reward.

If a salary or fee is paid in crypto, that is employment income, and tax is withheld as on an ordinary salary.

Cashing out crypto and moving it to a bank

You can sell crypto for euros through platforms licensed in the EU and withdraw the money to a Latvian or other European account. The withdrawal itself is not taxed: tax is paid on the gain from the sale.

Latvian banks check the origin of money from exchanges strictly. Large inflows need trade statements, deposit history and proof of where the money for the first purchases came from.

If coins were bought long ago and the purchase price was not kept, it is harder to prove, so statements are best downloaded early while the exchange still stores them.

Crypto account data sharing

From 2026, under the EU directive on crypto-asset data exchange, providers in the EU collect data on clients and transactions, and EU tax authorities exchange it. Latvia also exchanges information on foreign bank accounts.

For holders this means trades on European exchanges and money in foreign accounts are visible to the Latvian tax office, and the amounts in the return must match them.

If gains were not declared in past years, it is safer to correct them yourself before the tax office sends a request.

Licences for crypto companies in Latvia

Since mid-2025 companies that hold, exchange or transfer clients' crypto-assets can operate in Latvia only under a licence under the EU regulation on markets in crypto-assets, issued by the Bank of Latvia. Such a licence allows serving clients across the EU.

A Latvian company pays 20% tax only on distributed profit, and profit kept in the business is not taxed. A comparison of countries for a licence is in our article on the crypto licence.

A project without EU clients usually finds a licence in another country more convenient.

Murblz sets up crypto companies and licences in these services: crypto licence: countries and costs, crypto licence in Estonia, BVI company with a virtual asset service provider licence.

This topic in other countries

Crypto tax in other countries:

Taxes, relocation and business in this country:

Where crypto is not taxed at all is covered in countries with no crypto tax.

FAQ

What is the crypto tax in Latvia in 2026?

25.5% on gains from selling coins for money. Coin-to-coin swaps are not taxed.

Are crypto-to-crypto swaps taxed in Latvia?

No, the tax service has confirmed that tax arises only on sale for money or payment for goods and services.

When is the crypto tax return filed in Latvia?

If gains for a quarter exceed €1,000, by the 15th of the following month; otherwise by 15 January of the following year. At year end gains are recalculated in the annual return.

Can crypto losses be deducted in Latvia?

Yes, losses reduce gains on assets of the same category in the same year.

Is there a holding period exemption for crypto in Latvia?

No, gains are taxed however long you held the coins.

How is mining taxed in Latvia?

Regular mining is business income taxed at 25.5% and 33%, with costs deducted.

Who is a Latvian tax resident?

Someone with a permanent home in Latvia or who spends 183 days or more in the country in 12 months.

Do crypto businesses in Latvia need a licence?

Yes, a Bank of Latvia licence under the EU regulation on markets in crypto-assets, valid across the EU.

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