Crypto tax in Latvia and DAC8

Short answer: in Latvia, income from disposing of crypto-assets is subject to personal income tax as a capital gain. Since 2025 the rate is 25.5%.^c-1 If your income from capital assets exceeds 1,000 euros in a quarter, you file the DK declaration for that period; otherwise once a year by 15 January of the following year.^c-2 Since 2026 exchanges collect data about their customers and transactions and will report it to tax authorities (DAC8).^c-5

This page gives general information. For your own situation, ask the State Revenue Service (VID) or a tax adviser.

When taxable income arises

• When you sell crypto-assets for euros or other money.^c-3
• When you pay for goods or services with crypto-assets. The income is the value of what you receive.^c-3
• Exchanging one crypto-asset for another creates no income at the moment of the swap. The gain is taxed when the crypto-assets you received are later disposed of for money, goods or services.^c-3
• VID treats the sale of crypto-assets you produced (generated) yourself, including NFTs, as business activity. Whether that also applies to mined crypto-assets, ask VID.^c-3
• VID's guidance does not cover staking or airdrops. In those cases ask VID.

How the gain is calculated

• Gain = disposal price minus acquisition value. The acquisition value includes commissions and similar documented costs.^c-4
• If the acquisition value cannot be determined, it is taken as 0.^c-4
• The acquisition value can be determined by FIFO or by weighted average. Once chosen, the method must be used for at least 10 years.^c-4
• Losses on crypto-assets can only be offset against gains on crypto-assets. Losses on other capital assets may be offset against crypto gains.^c-4
• Disposals started in 2024 and completed in 2025 are taxed at 20%.^c-1

How and when to declare

• You declare with the capital gains declaration DK in VID's Electronic Declaration System (EDS).^c-2
• If total income from transactions with capital assets exceeds 1,000 euros in a quarter, the DK is due by the 15th of the month after the income was received. Check the exact deadline in EDS.^c-2
• If it does not, one DK for the whole year is due by 15 January of the following year. For 2026 that is 15 January 2027.^c-2
• If one quarter shows a gain and another a loss, file the annual capital gains correction declaration (GD) by 1 February of the following year.^c-2
• Pay the tax by the 23rd of the month in which the DK is due.^c-2
• If your annual income exceeds 200,000 euros, an additional 3% applies, calculated in the annual income declaration.^c-1

New: one-time crypto declaration in 2027

On 15 October 2026 the Saeima adopted amendments to the Law on Personal Income Tax in final reading.^c-6

• Crypto-assets held on 31 December 2026 in accounts at crypto-asset service providers licensed in the EU, or at self-controlled addresses, can be declared once by paying 10% of their market value on 31 December 2026.^c-6
• The declaration can be filed from 1 April to 31 May 2027 and corrected once by 30 June. The tax is due by 23 July 2027.^c-6
• The declared market value becomes the new acquisition value.^c-6
• Whoever pays is treated as having met the declaration and payment requirements for the period up to 31 December 2026 for the declared assets.^c-6
• The option is not available to people already facing criminal proceedings, a tax audit, tax control or administrative offence proceedings related to crypto income.^c-6
• An investment-account regime for crypto-assets is also introduced: tax becomes due when the amount withdrawn from the account exceeds the amount invested. The Cabinet of Ministers must adopt the rules by 30 December 2026.^c-6

We are following the law's promulgation and VID's guidance and will update this section.

DAC8: what exchanges will report

• Since 1 January 2026, EU Directive 2023/2226 (DAC8) requires crypto-asset service providers to collect and report data about their customers and their transactions.^c-5
• For each customer: name, address, country of residence, tax identification number, and for individuals also date and place of birth. The customer self-certifies their tax residence and number.^c-5
• For transactions: totals of acquisitions and disposals against money and against other crypto-assets, retail payments and transfers, including transfers to self-hosted addresses.^c-5
• Countries exchange the data within 9 months after the end of the calendar year. For 2026 that is by 30 September 2027.^c-5
• Latvia transposed the directive with amendments to the Law on Taxes and Duties and Cabinet regulations that took effect on 1 January 2026.^c-7

Tools

You can also calculate your transaction history and gains with crypto tax software. Koinly and Blockpit (checked 2026-10-24) do not offer a report tailored to Latvia's VID, so they are useful for the calculation only.^c-8

What to do now

1. Keep the full transaction history from every exchange (export CSV) and your purchase records.
2. Choose FIFO or weighted average and stick with it.
3. If your income exceeds 1,000 euros in a quarter, file the DK for that period.
4. Consider the one-time declaration in spring 2027, once VID has published its guidance.
5. In complex cases (staking, a long transaction history, moving to another country) ask VID or a tax adviser.

Claims

This page is not investment or tax advice.