How much tax could you pay when selling shares, cryptocurrency or property in Latvia?
The Finorum Latvia Capital Gains Tax Calculator estimates the tax due on a private capital gain under Latvia’s 2026 rules. Enter the purchase price, sale price, eligible costs and other relevant details to calculate the estimated gain and potential tax liability.
Latvia generally applies a 25.5% personal income tax rate to taxable capital gains. Certain property sales may qualify for an exemption, while an additional 3% tax can affect individuals whose total annual income exceeds €200,000.
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How Capital Gains Are Taxed in Latvia
Capital gains are generally calculated by deducting the acquisition value and eligible investments made during the ownership period from the disposal price:
Capital gain = Sale proceeds − Acquisition value − Eligible investments and costs
Capital assets covered by these rules include:
- Real estate
- Shares and company interests
- Investment fund units
- Bonds and other financial instruments
- Businesses and intellectual property
- Investment gold and certain precious metals
- Cryptocurrency and other cryptoassets
Since 1 January 2025, Latvia has applied a 25.5% personal income tax rate to income from capital gains. The rate therefore also applies to qualifying gains realised during 2026.
The Latvian State Revenue Service provides the current rules on its official capital gains tax page.
Capital Gains on Shares and Securities
A private individual who sells shares, fund units, bonds or other financial instruments at a profit generally pays tax at 25.5% on the net capital gain.
Unlike some European countries, Latvia does not provide a general tax exemption simply because listed shares have been held for a particular number of years. A longer holding period does not by itself make an ordinary share disposal tax-free.
For example, if an investor purchases shares for €20,000 and later sells them for €27,000 while incurring €300 of eligible transaction costs, the estimated taxable gain is:
€27,000 − €20,000 − €300 = €6,700
At the standard capital gains rate, the estimated tax would be:
€6,700 × 25.5% = €1,708.50
The calculator treats brokerage fees and other directly connected eligible acquisition or disposal costs as adjustments where supported by documentation.
Dividends are not capital gains. They are subject to separate Latvian rules for income from capital and should not be entered as disposal proceeds in the calculator.
Investment Accounts
Latvia provides a special tax regime for qualifying investment accounts. Under this approach, taxation may be deferred while proceeds remain within the registered investment account and are reinvested.
Tax may become payable when the amount withdrawn from the account exceeds the amount contributed to it.
This means that individual sales made inside a qualifying investment account may not always create an immediate personal tax payment. The calculator’s standard disposal route assumes that the transaction is taxed under the normal capital gains rules and does not automatically reproduce the complete cash-flow history of an investment account.
Investors using this regime should compare their total deposits and withdrawals and confirm that the account has been properly registered or otherwise qualifies under Latvian law.
Cryptocurrency Tax in Latvia
Income earned by a private individual from selling cryptoassets is generally classified as income from capital gains and taxed at 25.5%.
The gain is calculated by subtracting the original acquisition value and eligible acquisition-related expenses from the disposal value:
Crypto gain = Disposal value − Acquisition value − Eligible acquisition expenses
If the taxpayer cannot establish the original acquisition value, the Latvian State Revenue Service may treat the acquisition value as zero. Maintaining exchange statements, wallet histories and payment records is therefore especially important.
For Latvian tax purposes, the income date generally arises when a person receives money by exchanging cryptoassets for official currency.
When one cryptoasset is exchanged directly for another without receiving money, goods or services, the Latvian authority explains that the income-recognition point is generally deferred until the acquired cryptoasset is later disposed of in exchange for money, goods or services.
This treatment differs from jurisdictions that tax every crypto-to-crypto exchange immediately.
Latvia · Cryptocurrency — Private cryptocurrency gains are generally taxable at 25.5%. There is no general long-term holding exemption. TAXABLE
Frequent or organised trading can potentially constitute an economic activity rather than passive private investment. Mining, business operations and compensation received in cryptoassets may also require a different calculation.
The State Revenue Service provides updated guidance on cryptoasset transactions by individuals.
Capital Gains on Property
A taxable gain from selling Latvian real estate is generally subject to the 25.5% capital gains rate.
The acquisition value may include the documented purchase price and certain eligible costs. Investments made in the property during ownership may also reduce the taxable gain where they meet the statutory conditions and can be supported by invoices or other evidence.
However, several important exemptions can make a property gain tax-free.
Five-Year Ownership and Declared Residence Exemption
Income from a property sale may be exempt when:
- The property has been owned for more than 60 months from its registration in the Land Register; and
- It served as the seller’s declared main residence for at least 12 consecutive months during the 60 months preceding the sale agreement.
The declared address must be the person’s main declared residence rather than an additional address.
Both conditions must be satisfied. Merely owning a property for five years is not sufficient under this particular exemption if the residence requirement is not met.
Latvia · Qualifying Declared Residence — A property owned for more than 60 months and used as the seller’s declared main residence for at least 12 consecutive months during the preceding 60 months may be sold tax-free. TAX FREE ✓
The ownership period is generally counted from the date the property was registered in the Land Register, making timely registration important.
Exemption for the Seller’s Only Property
A separate exemption may apply where the real estate:
- Has been owned for more than 60 months; and
- Was the seller’s only property registered in the Land Register during the preceding 60 months.
This route can be relevant even if the declared-residence conditions are not met, provided the statutory only-property requirements are satisfied.
The facts should be checked carefully where the taxpayer owns land, another apartment, a share in another property or property abroad.
Reinvestment of Proceeds from the Only Property
Another exemption may apply when the property sold is the taxpayer’s only real estate registered in the Land Register and the proceeds are reinvested in a functionally similar property.
The reinvestment generally needs to occur within the period beginning 12 months before and ending 12 months after the sale.
For full relief, the amount reinvested must generally be at least equal to the difference between the sale price and the acquisition value. If a smaller amount is reinvested, only part of the income may qualify for relief.
Latvia · Only Property Reinvestment — Income from the sale of the taxpayer’s only registered property may qualify for an exemption when it is reinvested in a functionally similar property within the prescribed 12-month period. POTENTIALLY TAX FREE ✓
The State Revenue Service describes these exemptions on its official Latvian capital gains guidance.
Treatment of Capital Losses
A disposal that produces a loss does not create capital gains tax. A transaction consisting solely of a loss generally does not need to be included in the standard capital gains declaration.
Losses from capital asset transactions may be used against eligible capital gains realised during the same tax year. An annual capital gains adjustment declaration can be submitted where losses arising in one quarter were not fully matched against gains reported in another quarter.
Special restrictions apply to cryptoasset losses. These should not automatically be treated as interchangeable with gains from every other category of capital assets.
Maintain separate records for:
- Shares and financial instruments
- Cryptoassets
- Real estate
- Acquisition and disposal costs
- Property improvements
- Foreign taxes paid
Latvia’s annual adjustment procedure is explained by the State Revenue Service.
Additional 3% Tax on High Annual Income
Latvia applies an additional 3% personal income tax to the part of an individual’s total annual income exceeding €200,000.
Capital income can affect this annual calculation. Consequently, a large property, securities or cryptocurrency gain may create an additional liability beyond the standard 25.5% capital gains estimate.
The additional tax is calculated through the annual income tax return. Because it depends on the taxpayer’s other income, the calculator may display it separately or exclude it from the standard result unless the relevant annual-income option is selected.
Current personal income tax rates are published by the Latvian State Revenue Service.
Declaration and Payment Deadlines
The reporting deadline depends on the amount of income—not only profit—received from capital asset transactions during a quarter.
For a Latvian resident:
- If total quarterly income from capital asset transactions exceeds €1,000, the capital gains declaration must generally be submitted by the 15th day of the month following the quarter.
- If quarterly income does not exceed €1,000, the declaration is generally submitted by 15 January of the following year.
- The calculated tax is normally payable by the 23rd day of the relevant filing month.
The €1,000 amount determines the reporting frequency. It is not a tax-free capital gains allowance.
Declarations can be submitted through the State Revenue Service Electronic Declaration System.
Residents, Non-Residents and Foreign Assets
Latvian tax residents may be required to consider gains from Latvian and foreign assets. Foreign tax paid may be relevant under Latvian law or an applicable double taxation agreement.
Non-residents can remain liable for tax on certain Latvian-source gains, particularly income from Latvian real estate. Their declaration deadlines may also differ from those applying to residents.
The calculator estimates the domestic treatment for an individual Latvian resident. It does not automatically determine treaty residence, foreign tax credits, permanent establishment issues or whether trading qualifies as an economic activity.
Calculation Assumptions
Unless another option is selected, the calculator assumes that the user:
- Is a Latvian tax-resident individual
- Holds the asset as part of private wealth
- Is not carrying on a professional trading business
- Realises the gain during 2026
- Can document the acquisition value
- Has entered eligible costs correctly
- Does not use a qualifying investment-account deferral
- Does not qualify for an unselected property exemption
- Has total annual income below the €200,000 additional-tax threshold
The final tax can differ when assets were inherited, received as a gift, acquired before marriage, transferred through a company or sold under an instalment agreement.
Important Notice
The Finorum Latvia Capital Gains Tax Calculator provides an estimate for informational purposes only. It does not constitute personalised tax, legal or investment advice.
Property exemptions depend on Land Register records, ownership history, declared residence and reinvestment conditions. The treatment of investment accounts, cryptoassets, inherited property, foreign assets and business trading may also require an individual assessment.
Before completing a substantial transaction, consult the Latvian State Revenue Service or a qualified Latvian tax adviser.
Latvia capital gains tax calculator
Matias Buće has a formal background in administrative law and more than ten years of experience studying global markets, forex trading, and personal finance. His legal training shapes his approach to investing — with a focus on regulation, structure, and risk management. At Finorum, he writes about a broad range of financial topics, from European ETFs to practical personal finance strategies for everyday investors.