Cryptocurrency in Latvia: 25.5% tax and quarterly filing
In short. Crypto is legal in Latvia. Latvijas Banka licenses providers under MiCA, and it gave earlier providers only until 30 June 2025 to apply, a year ahead of the EU-wide deadline. Gains meet the 25.5% capital gains tax that Latvia introduced for 2025. You may also have to file every quarter: once a quarter's gains pass 1,000 euros, the declaration is due by the 15th of the next month.
- TAX RATE
- 25.5%on capital gains from 2025
- RATE UNTIL 2024
- 20%before the 2025 change
- QUARTERLY FILING
- Over 1,000 eurosdeclare by the 15th of the next month
- HIGH INCOME
- +3%on total income above 200,000 euros a year
- SUPERVISOR
- Latvijas Bankaunder MiCA
The 2025 rate
Latvian law treats crypto as a capital asset, so a gain on a sale falls under the general capital gains rules. Latvia raised that rate from 20% to 25.5% from 2025. A separate 3% applies to the part of your total annual income above 200,000 euros.
You can set losses against crypto gains of the same year. Keep the documents for every purchase and sale, since the State Revenue Service asks you to support both values.
Quarterly or yearly
Latvia sets the filing rhythm by size. If your gains from capital assets in a quarter exceed 1,000 euros, you file by the 15th of the following month and pay by the 23rd. Smaller amounts go into one declaration by 15 January of the next year, with payment by 23 January.
Supervision
Since 2023 Latvijas Banka has carried out the work of the former Financial and Capital Market Commission, including crypto supervision. It began accepting MiCA applications on 2 January 2025.
Latvia gave providers that operated before MiCA a short window. They could work under the old anti-money-laundering rules until 30 June 2025, and those that had applied by then could keep operating while the bank reviewed the file. Since 1 July 2026 every provider serving Latvian clients needs a MiCA licence from Latvijas Banka or another EU state.
Allowed
- Buy, hold and sell crypto
- Set crypto losses against gains of the same year
- Use a provider licensed anywhere in the EU
Restricted
- Crypto gains meet 25.5% capital gains tax
- Gains above 1,000 euros in a quarter require a quarterly declaration
- Total income above 200,000 euros a year adds 3%
How the rules took shape
Latvijas Banka takes over the work of the Financial and Capital Market Commission.
The capital gains rate rises to 25.5%, and Latvijas Banka starts accepting MiCA applications.
Latvia's own transitional period for earlier providers ends.
The MiCA transition ends across the EU.
Common questions
Is crypto legal in Latvia?
Yes. Latvijas Banka licenses providers under MiCA, and you may buy, hold and sell crypto.
How much tax do I pay on crypto in Latvia?
25.5% on gains from 2025, as capital gains. Total income above 200,000 euros a year adds 3%.
How often do I have to declare crypto gains?
Every quarter if a quarter's gains pass 1,000 euros, by the 15th of the next month. Otherwise once a year, by 15 January.
Can I offset crypto losses?
Yes, against gains of the same tax year.
Who supervises crypto exchanges in Latvia?
Latvijas Banka, the central bank, which absorbed the Financial and Capital Market Commission in 2023.
Sources
Other countries
Updated 02.11.2026 · this is reference material, not investment or tax advice