Europe
Latvia: tax at a glance
A progressive income tax (25.5%/33%), an Estonian-style corporate tax charged only on distributed profits, and no recurring wealth or inheritance tax.
Ways to relocate to Latvia
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 33%
- Corporate income
- 20% on distributed profits, an effective 25% through the 20/80 gross-up. Retained or reinvested profits are taxed at 0%.
- Capital gains
- 25.5%, treated as capital income
- VAT / PVN (VAT)
- 21%
- Dividends (WHT)
- 0% if CIT or PIT has already been paid. Otherwise 25.5%, or 20% to low-tax jurisdictions.
- Interest (WHT)
- 0%, or 20% to low-tax jurisdictions
- Royalties (WHT)
- 0% (20% to low-tax jurisdictions)
- Social security (employee)
- 10.5%
- Social security (employer)
- 23.59%
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Real-estate tax runs 0.2-3% of cadastral value, set by the municipality
- Other
- A solidarity tax applies above the social-security cap, plus a 3% PIT surcharge above EUR 200k
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in Latvia?
The top marginal personal income tax rate in Latvia is 33%. Progressive. 25.5% up to EUR 105,300 and 33% above that, plus a 3% surcharge on income over EUR 200k.
What is the corporate tax rate in Latvia?
The headline corporate income tax rate is 20% on distributed profits, an effective 25% through the 20/80 gross-up. Retained or reinvested profits are taxed at 0%..
Does Latvia tax capital gains?
Capital gains for individuals: 25.5%, treated as capital income.