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Capital gains tax in Latvia 2026
All capital gains — shares, funds, real estate, precious metals, crypto — share one flat 25.5% rate, reported quarterly once gains top EUR 1,000.
Your home escapes if you owned it at least 60 months and it was your registered principal residence for 12 consecutive months before the sale.
At a glance
- top rate
- 25.5% flat (was 20% before 2025)
- entry band
- 25.5% from the first euro of gain
- tax year basis
- Quarterly returns above EUR 1,000 of gains; annual otherwise
- filing deadline
- 15th of the month after the quarter
- residency basis
- Residents: worldwide gains; non-residents: Latvian property and non-listed assets
- regime flag
- EEA government bonds: gains exempt
Rates
Capital gains treatment (2026)
| Rate | Base | Applies to |
|---|---|---|
| 25.5% | Gain | Shares, securities, fund certificates, debt instruments, enterprises, intellectual property, precious metals and crypto assets |
| 25.5% | Gain | Real estate — unless exempt |
| 0% | — | Your home: owned 60+ months and your registered principal abode for 12 consecutive months before sale |
| 0% | — | Latvian and other European Economic Area (EEA) government and municipal bonds |
Thresholds & allowances
- Loss reliefSame-year only
Capital losses offset the year's capital gains; no carryforward and no offset against other income
- Quarterly filing triggerEUR 1,000 of gains
Above it, returns are due by the 15th after the quarter; smaller gains report annually by 15 January
Residency
Residency trigger
Residents report worldwide gains at the flat rate; the gains also count toward the EUR 200,000 surcharge base.
Non-resident treatment
Non-residents are taxed on Latvian real estate (with a 3% withholding on proceeds when sold to Latvian businesses, or net 25.5% by return), property-rich entities (over 50% Latvian real estate) and non-listed capital assets — publicly traded financial instruments are exempt.
Notes
- The rate climbed from 20% to 25.5% in 2025 — Latvia now taxes capital and labour income at the same entry rate.
- Gains from trading as a business fall into ordinary income instead.
- The home exemption's 12-month registered-residence test sits inside the 60-month window — registration matters, not just occupancy.
- Sales of inherited copyright royalties are taxable even though inheritances themselves are exempt.
FAQ
What is Latvia's capital gains rate?
A flat 25.5% on shares, property, crypto and other capital assets — up from 20% before 2025, with quarterly reporting once gains exceed EUR 1,000.
When is my home sale tax-free?
After 60 months of ownership, provided the property was your registered principal residence for at least 12 consecutive months within that period.
Figures: tax year 2026, compiled from public sources. Not tax advice.