Income tax on capital gains
Capital gains are determined by deducting the acquisition value and the value of the investments made in the capital asset during the holding of the capital asset from the disposal price of the capital asset.
Capital gains from virtual currency are determined by subtracting the initial acquisition value from the disposal price of the capital asset.
Capital assets are:
- real estate (including the right to acquire real estate)
- shares, capital shares, equities, investments in a partnership and other financial instruments referred to in the Financial Instrument Market Law
- investment fund certificates and other transferable securities evidencing an interest in investment funds or comparable collective investment undertakings
- debt instruments (promissory notes, certificates of deposit, short-term debt instruments issued by commercial companies) and other cash instruments traded on the money markets
- an enterprise within the meaning of the Commercial Law
- objects of intellectual property
- investment gold and other precious metals, objects of transactions on a currency trading exchange or commodity exchange
- virtual currency within the meaning of the Law on the Prevention of Money Laundering and Terrorist Financing
The personal income tax rate on income from capital gains is 20 %.
Submission of the declaration
The deadline for submitting the declaration depends on the amount of income received in the quarter:
- if the total income of a person (resident of Latvia) from transactions with capital assets in a quarter exceeds EUR 1000, the declaration of income from capital for the income obtained shall be submitted to the SRS once a quarter before the 15th day of the month following the quarter. The amount of tax calculated shall be paid into the single tax account by the 23rd day of the month in which the declaration on income from capital is submitted;
- if a person's total income from transactions with capital assets in a quarter does not exceed EUR 1000, then the declaration must be submitted by January 15 of the following year, and the amount of the calculated tax is paid into the unified tax account by January 23.
Cabinet Regulation No. 662 of 30 October 2018 "Regulations on personal income tax returns and the procedure for filling them out" is available in the section "Taxes/Personal income tax/Legislation".
We invite you to submit the declaration electronically – in the Electronic Declaration System (EDS).
The declaration can also be submitted in person at any SRS Customer Service Department. The declaration form on income from capital gains is available in the section "Taxes/Personal income tax/Forms and applications"
Reporting period statement of income from capital gain
Annual capital gain income clarification declaration
Information on transactions started but not completed in one taxation year