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.
Worldwide (residence-based)
Last verified
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%Progressive. 25.5% up to EUR 105,300 and 33% above that, plus a 3% surcharge on income over EUR 200k.
- 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
A special regime for new arrivals
Corporate tax: 0% on retained and reinvested earnings, with 20% due only on distribution. This is Latvia's genuine structural advantage. There is no special personal regime for investors.
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.