For a Latvian individual, the euro value assigned to a crypto transaction directly changes the capital gain reported to the State Revenue Service (VID). A higher euro disposal value increases the gain and tax; a lower documented value reduces it. For crypto-asset disposals from 2025, VID applies a 25.5% personal income-tax rate to the gain, replacing the former 20% rate.
The practical task is to identify the taxable event, convert the relevant amounts into euros using a documented and consistently applied method, allocate acquisition cost correctly when selling part of a holding, and retain evidence for at least five years. VID guidance requires euro valuation but does not prescribe one universal exchange, ECB, or provider rate for every individual non-euro transaction.
As an Amazon Associate I earn from qualifying purchases.
The calculation that the exchange rate changes
VID treats an individual’s income from selling crypto-assets (also called virtual currency in Latvian guidance) as income from capital gains. The basic calculation is:
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteCapital gain = disposal price − acquisition value − acquisition-related expenses
All amounts used in that formula must be expressed in euros. If the crypto was bought or sold in another currency, the conversion method affects the disposal price, and therefore the gain on which tax is calculated.
For transactions from 2025 onward, the applicable personal income-tax rate on crypto-asset capital gains is 25.5%. VID states that the rate was 20% previously, so the transaction date and the tax year matter when comparing older records with current calculations.
| Euro proceeds for the same disposal | Allocated acquisition value | Capital gain | Tax at 25.5% |
|---|---|---|---|
| €900 | €370 | €530 | €135.15 |
| €1,000 | €370 | €630 | €160.65 |
| €1,100 | €370 | €730 | €186.15 |
This table is an arithmetic illustration, not a market-rate quotation. The acquisition value is held constant; only the documented euro disposal value changes. The resulting difference is why a rate source, timestamp, and transaction record should be kept with every calculation.
Recommended Free Tools
When a crypto transaction becomes taxable income
Selling crypto for euros or another official currency
VID says the income date for a crypto sale is the day the person receives money by exchanging the crypto for official currency. Use that date for the disposal record and for determining the relevant filing period.
The rate should therefore represent the transaction when the official-currency proceeds were received, rather than a later month-end price or a rate selected after the result is known. If settlement and order execution occur at different times, preserve the exchange confirmation showing which time and amount produced the proceeds.
Swapping one crypto-asset for another
For a crypto-to-crypto exchange with no other consideration, VID places the income date when the received crypto-asset is later disposed of for money, goods, or services. The initial swap is still important evidence: keep the quantities, execution time, wallet or exchange identifiers, and any euro valuation used in your records.
When the received asset is eventually disposed of, the later transaction must be calculated using its documented acquisition information. A swap record that lacks the quantity, date, or value can make it difficult to establish the acquisition value needed for the later gain calculation.
Quick wins for a faster PC:
Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Repair Windows errors before they cause bigger problemsFix Now →Using crypto to obtain goods or services
VID’s description of the later-disposal rule includes receiving money, goods, or services. Treat the date on which the crypto is used for that consideration as the relevant disposal event, and retain the invoice, receipt, or other transaction evidence showing what was received and when.
How to choose and document a euro conversion rate
The available VID material requires euro valuation but does not name one mandatory exchange, ECB, or commercial-provider rate and timestamp for every individual non-euro crypto transaction. That unresolved point means a defensible method is more important than claiming that one particular source is universally required.
| Approach | Transaction-time accuracy | Consistency | Audit trail | Best use |
|---|---|---|---|---|
| Rate shown on the execution record | Usually strongest because it is tied to the fill or settlement | Must be applied consistently across comparable transactions | Keep the trade confirmation, timestamp, currency pair, and fees | Exchange trades where the platform supplies a complete statement |
| Independent market-price source at the transaction time | Can be precise if the timestamp and price basis are clear | Use the same source and methodology throughout the tax records | Save a dated export or contemporaneous record identifying the source | Wallet transfers, decentralized trades, or transactions without a usable fiat statement |
| Daily or monthly average | Less precise for a volatile asset | Potentially consistent, but only if the same rule is used for all relevant transactions | Document the averaging interval, source, and reason for using it | Only where transaction-time evidence is unavailable and the method can be supported |
| ECB reference rate | Not automatically a crypto-market execution price | Not established by the retrieved VID pages as a universal personal-crypto rule | Would require evidence that the rate is appropriate to the transaction | Do not assume it is mandatory for every individual crypto disposal |
For each conversion, record the source name, exact timestamp and time zone, crypto and fiat amounts, currency pair, spread or fee treatment, and the transaction or ledger identifier. A consistent method means applying the same decision rule across the year, not choosing whichever rate produces the smallest gain.
What Cabinet Regulation No. 751 does and does not establish
Cabinet Regulation No. 751 states that a reportable payment above USD 50,000 is tested using a euro equivalent based on the European Central Bank’s published euro reference rate. It also states that reportable market value is valued at the time of each transaction using a method the provider applies consistently.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
Those provisions do not, by themselves, create a complete personal-income-tax conversion rule for every Latvian individual’s crypto sale. Do not present Regulation No. 751 as proof that every personal disposal must use the ECB rate. Instead, keep evidence for the rate actually used and be prepared to explain why it reflects the transaction.
Calculating a full or partial disposal
- Identify the disposal. Record whether the asset was sold for official currency, exchanged for another crypto-asset, or used to obtain goods or services.
- Fix the income date. For a fiat sale, use the date money was received. For a crypto-to-crypto swap without other consideration, use the later disposal date identified by VID’s rule.
- Convert the disposal proceeds to euros. Apply the documented rate for the transaction time and retain the source and timestamp.
- Establish the acquisition value. Use purchase records and documented acquisition-related expenses. If the original acquisition value cannot be established, VID says it is treated as zero.
- Allocate the cost when only part is sold. Use the proportion of the holding disposed of rather than assigning the entire purchase price to one partial sale.
- Subtract the allocated cost and qualifying acquisition-related expenses. The result is the capital gain for that disposal.
- Apply the rate for the relevant period. For disposals from 2025, use 25.5% on the resulting positive gain.
VID’s partial-Bitcoin example
VID gives this example: a person buys 0.1 Bitcoin for €3,700 and later sells one tenth of the holding for €1,000. One tenth of the acquisition value is €370. The disposal income is therefore €1,000 − €370 = €630.
At the 25.5% rate applicable from 2025, €630 would produce €160.65 of tax before considering the taxpayer’s overall capital-income position and any other applicable calculations. The €160.65 figure is a mathematical application of the current rate; VID’s example itself establishes the €630 income amount.
If the sale price equals or is below the proportionally allocated acquisition value, VID says no disposal income arises and the transaction need not be declared. Keep the calculation and supporting records anyway, especially when the transaction forms part of a larger wallet or exchange history.
When the original acquisition value is missing
If you cannot establish what the crypto originally cost, VID says the acquisition value is treated as zero. A €1,000 documented disposal would then produce €1,000 of gain before the 25.5% rate, or €255 in a simple calculation. This is why purchase confirmations, deposits, wallet transfers, and other evidence should be preserved even when the sale itself is fully documented.
Filing deadlines and the €1,000 quarterly threshold
VID’s 2026 guidance uses the amount of capital-asset income in a quarter to determine when the capital-gains declaration (DK) is filed.
| Quarterly capital-asset income | DK filing deadline | Payment deadline |
|---|---|---|
| More than €1,000 | By the 15th day of the following month | By the 23rd day of the following month |
| €1,000 or less | By 15 January of the following year | By 23 January of the following year |
The threshold is based on the quarterly capital-asset income covered by the guidance, not on the gross value of every crypto transfer. Your worksheet should therefore distinguish disposal proceeds, allocated acquisition value, and the resulting income so that you can determine which filing timetable applies.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Records to retain for VID
VID guidance says to keep purchase and sale receipts for at least five years. The receipts do not have to be attached to the DK return, but they should be available if VID asks how the return was calculated.
The Tool Desk
Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →- Purchase confirmations showing the asset, quantity, price, currency, date, and transaction identifier.
- Sale or settlement records showing when official-currency money was received.
- Crypto-to-crypto swap records, including both assets, quantities, execution time, and wallet or platform references.
- Invoices or receipts for goods and services obtained with crypto.
- The euro-rate source, exact timestamp, time zone, and saved statement or export supporting each conversion.
- Fee records and a note explaining which amounts were treated as acquisition-related expenses.
- Wallet-transfer records linking an asset to its original purchase, especially when coins move between platforms.
- A calculation sheet showing proportional allocation for every partial disposal.
- Copies of submitted DK returns and payment confirmations.
Keep the evidence in a form that remains readable for the entire retention period. If a platform offers downloadable statements, save them rather than relying only on a live account page that may later change.
Common mistakes and how to correct them
Using the wrong date
A monthly average or the date an exchange statement was downloaded may not be the income date. Anchor the calculation to the date money was received, or to the later disposal date for a crypto-to-crypto exchange covered by VID’s rule.
Switching rate sources to reduce tax
Using one provider for purchases, another for sales, and a third only when prices move favorably undermines consistency. Select a method in advance, document it, and apply it to comparable transactions.
Treating the ECB rate as automatically mandatory
The ECB reference-rate language in Regulation No. 751 concerns specified reportable payments and does not establish a universal rate for every individual crypto-tax event. Keep transaction-specific evidence instead of assuming that regulation resolves the personal-tax question.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minutePC Slower Than It Used to Be?
A free scan shows the junk files, broken settings and background clutter dragging Windows down - then fixes them in one click.Free scan · Windows 10 & 11Assigning the whole purchase cost to a partial sale
For a partial disposal, allocate the acquisition value in proportion to the amount sold. Assigning the entire cost to the first small sale can understate later gains and produce an inconsistent holding history.
Ignoring the filing threshold
Calculate quarterly capital-asset income as transactions occur. Waiting until year-end can cause a taxpayer whose quarterly income exceeded €1,000 to miss the earlier DK and payment deadlines.
Keeping only the final euro number
A spreadsheet cell containing “€1,000 proceeds” is not enough to recreate the result. Preserve the original amount, conversion source, timestamp, fees, and transaction identifier alongside the euro figure.
A practical workflow for each transaction
- Export the exchange, wallet, or payment record immediately after the transaction.
- Classify the event as a fiat sale, crypto-to-crypto exchange, or payment for goods or services.
- Enter the income date specified by VID’s rules.
- Convert the proceeds and relevant acquisition amounts into euros using the chosen documented method.
- For a partial sale, calculate the proportional acquisition value before determining the gain.
- Store the rate evidence with the transaction record, not in a separate folder with no cross-reference.
- Update the quarterly total of capital-asset income and check whether it exceeds €1,000.
- Prepare the DK filing by the applicable deadline and retain the return and payment confirmation for at least five years.
The central control is traceability: another person should be able to start with the receipt, identify the rate and timestamp, reproduce the euro amount, and follow the acquisition-cost allocation to the declared gain.
Free tools Windows power users keep installed
One-click scans. No signup required.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
