Latvia cryptocurrency tax guide

What this guide covers

This guide covers Latvia's individual crypto tax rules for 2025 under the VID's June 2025 methodological clarification. vid.gov.lv itself wasn't directly fetched. This is educational information, not individualized tax advice.

Tax treatment of cryptocurrency

Latvia taxes your crypto-asset sale gains at 25.5%, a rate that rose from an older figure in 2025. The VID's June 2025 methodological material clarifies that income from crypto-asset sales constitutes capital gains, subject to personal income tax at 25.5% from 2025 onward — up from an older 20% rate that some stale secondary guides still cite. Tax applies when you sell crypto and receive fiat currency in return. One vendor guide claims the VID has confirmed crypto-to-crypto exchanges aren't a taxable event, but this guide doesn't treat that specific claim as independently confirmed against the VID's own methodological material.

Common taxable events

• Selling or exchanging crypto for fiat and receiving a profit — taxed as a capital gain at 25.5%.

Potentially non-taxable events

• Crypto-to-crypto exchanges — reported by one vendor guide as not a taxable event, though this guide doesn't independently confirm this against the VID's own text.
• Simply buying and holding crypto isn't a taxable event.

Tax rates and thresholds

A 25.5% rate applies to capital gains from crypto-asset sales, effective from 2025, confirmed via the VID's own June 2025 methodological material. This guide doesn't identify a specific exemption threshold.

Cost basis and calculation

This guide doesn't independently confirm a mandated cost-basis identification method for Latvian crypto gains.

Reporting and compliance

• If your quarterly income from capital-asset transactions exceeds €1,000, you file a quarterly declaration by the 15th of the following month, with tax paid by the 23rd.
• Otherwise, an annual declaration is due by January 15 of the following year, with tax paid by January 23.
• Investment income is declared electronically using the VID's EDS (Elektroniskā deklarēšanas sistēma) system.

Residency and cross-border issues

Your Latvian tax residency generally governs whether your worldwide crypto gains fall within this regime. This guide doesn't cover non-resident rules in depth.

Example

This example is hypothetical, for illustration only. Ieva sells crypto for a €3,000 gain in a single quarter, her only capital-asset transaction that quarter. Since this is under the €1,000-per-quarter quarterly-filing trigger threshold description, this guide doesn't resolve which filing track applies without further quarterly context — but the tax itself is calculated at 25.5%, or €765.

Official resources

• Valsts ieņēmumu dienests (VID): https://www.vid.gov.lv/

Limitations and review information

Tax year covered: 2025. Last verified: October 11, 2026. Known gap: vid.gov.lv's own methodological material wasn't directly fetched in full, though its substance, rate, and date are confirmed via a direct Bloomberg Tax report. The crypto-to-crypto exchange exemption claim wasn't independently confirmed. This is educational information only, not individualized tax advice — confirm current specifics directly with the VID or a qualified Latvian tax professional.