Latvia could allow residents to pay personal taxes with cryptocurrency as early as next year, extending a broader effort to attract crypto firms and investors. The Finance Ministry has agreed to the plan, while technical work with payment service providers continues. The government has not disclosed which companies would process the payments or which cryptocurrencies would be accepted. The timing could depend on the next government. The proposal builds on plans announced in May 2025 to enable crypto tax payments and tokenize assets such as real estate. Separately, parliament passed legislation on Oct. 15, 2026, changing how crypto investment income is taxed. Under the investment-account model, withdrawals are taxable only when they exceed deposits, rather than when individual trades occur. The law also creates a one-time declaration process for past tax obligations. Holders can declare assets at their market value at the end of 2026, pay 10% of that value, file from April 1 to May 31, 2027, and settle the tax by July 23. The measure is intended to help people who lack records of older purchases. Latvia’s approach follows earlier efforts to attract crypto businesses; Colorado has accepted crypto tax payments through PayPal since 2022, converting the funds into dollars.