These amendments introduce a significant relief for non-residents — foreign taxpayers will be exempt from PIT on income from the disposal of publicly traded crypto assets.
Why are these changes important?
Until now, a 3% PIT was applied to non-residents in Latvia on income from crypto asset disposals. Reclaiming this tax required a complicated and lengthy refund process, which discouraged many foreign companies from operating in Latvia.
Now, with the new amendments, the regime becomes significantly more attractive — non-residents operating in accordance with EU regulatory requirements and holding the appropriate license will no longer have to pay PIT on income from crypto asset disposals in Latvia.
A strategic step to improve the business environment
This tax relief aims to:
Effective from January 1, 2025, to December 31, 2027
The PIT exemption will apply for a limited period — a three-year period from January 1, 2025, to December 31, 2027. This period will allow for an assessment of the relief's effectiveness and the further development of the policy in line with market evolution.
Comment from an LP Consulting professional:
From an accounting perspective, these amendments change the approach to taxing crypto-related income, facilitating cooperation with foreign partners and potentially introducing new dynamics in the export of financial services. Entrepreneurs and financial consultants are advised to monitor the implementation of this policy and utilize it when planning cooperation with EU-licensed crypto asset service providers.