Latvia could allow residents to pay personal taxes with cryptocurrency as early as next year, as part of a push to attract crypto firms and investors.

The country’s Finance Ministry has agreed to the plan, though technical work with a payment provider remains, said Didzis Dejus, an adviser to the prime minister on strategic planning and the new economy.

Asked whether Latvians would be able to pay taxes in crypto during the prime minister’s term, Dejus told CoinDesk at the UN:BLOCK Fintech conference in Riga that “I believe that will take place next year.”

CoinDesk has reached out to Latvia’s Finance Ministry for comment but hasn’t heard back at the time of writing.

The move would give crypto holders a way to use their assets to meet tax bills. It also builds on plans announced in May 2025 to enable crypto tax payments and the tokenization of other assets like real estate.

“We are not afraid to be the fastest country,” Dejus said, describing efforts to attract crypto business beyond licensing.

The proposal comes as Latvia changes how it taxes crypto investments. On Oct. 15, the country’s parliament passed legislation to tax withdrawals from crypto investment accounts once they exceed the amount deposited, rather than taxing each trade.

The law also introduces a one-time declaration process. Holders can settle past tax obligations by paying 10% of their declared assets’ market value at the end of 2026. Declarations can be filed from April 1 to May 31, 2027, with the tax due by July 23.

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