Latvia Passes Temporary Tax Break for Crypto Asset Transactions

Latvia will temporarily exempt non-residents from a 3% levy on the disposal of crypto assets in public circulation, under a personal income tax amendment passed by the parliamentThursday.

The exemption, applicable between Jan. 1, 2025, and Dec. 31, 2027, is designed to attract international crypto-asset service providers and foster innovation.

• It replaces a “cumbersome and unattractive” process of first paying the levy and then claiming it back, according to the amendment announcement.
• According to the ministry of economics, the levy discouraged non-resident crypto-asset service providers from obtaining an operating license in Latvia because it potentially subjected ...