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Latvia tax guide 2026
Latvia's system pivots on one number: EUR 105,300. Below it you pay 25.5% on earnings; above it 33%, plus a 25% solidarity tax replacing capped social contributions, plus a 3% surcharge once total income passes EUR 200,000. Investors do better — most dividends arrive exempt because the company already paid, and remote workers on Latvia's digital-nomad visa can lock in 15%.
- Rate range
- 25.5% / 33% (+3% over EUR 200,000); capital income 25.5%
- Key allowance
- EUR 6,600 a year for everyone (2026); EUR 12,000 for pensioners
- Tax year
- Calendar year
- Filing deadline
- 1 March – 1 June (from 1 April if income exceeds EUR 105,300)
Taxes covered
- Income tax33%
25.5% up to EUR 105,300 and 33% above, plus a 3% surcharge on total income over EUR 200,000 — with 10.5% social contributions running alongside.
- Dividend tax0% / 25.5%
Dividends from company-taxed post-2017 profits are exempt; everything else — old profits, low-tax-jurisdiction payers — bears 25.5%.
- Capital gains tax25.5%
One flat 25.5% on gains from shares, property, funds and crypto — with a 5-year-plus-residence exemption for your home.
- Crypto tax25.5%
Crypto assets are named capital assets — gains pay the flat 25.5%; non-residents' publicly circulated crypto gains are exempt through 2027 — the relief applies only to disposals through businesses licensed to provide crypto-asset services under the EU framework.
- Social security10.5%
Employees pay 10.5% up to the EUR 105,300 ceiling; beyond it a 25% combined solidarity tax keeps the burden going.
- Inheritance tax0%
No inheritance or gift tax — inheritances are exempt income, and gifts from close relatives are always tax-free.
- Withholding tax0% – 25.5%
Dividends mostly leave at 0%; interest and copyright royalties at 25.5% (5% special cases), other royalties at 5%, rents at 10% gross — with punitive rules for low-tax destinations.
Special regimes
- Remote-worker 15%
Digital-nomad visa holders working for an employer in another developed country can elect a flat 15% on that pay.
- Exempt dividends
Dividends from post-2017 profits that bore corporate tax reach you with 0% personal tax.
- Micro-enterprise tax
Small businesses can swap income tax and social contributions for a single 25% tax on turnover.
- No inheritance or gift tax
Estates pass tax-free, and gifts from close relatives are always exempt.
Recent changes
- 2026-01Personal allowance rises to EUR 550 a month (EUR 6,600 a year); minimum wage reaches EUR 780; the alternative 6%-dividend model opens for solely individual-owned companies.
- 2025-01Two-rate system arrives: 25.5% to EUR 105,300, 33% above, plus the 3% surcharge over EUR 200,000; capital income moves from 20% to 25.5%.
- 2025-04'Virtual currency' becomes 'crypto assets' in the capital-asset list; non-residents' publicly circulated crypto gains stay exempt through 2027 — the relief applies only to disposals through businesses licensed to provide crypto-asset services under the EU framework.