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Inheritance tax in Latvia 2026
Latvia levies no inheritance tax: inheritances are simply exempt income for the heir, whatever the amount (inherited copyright royalties are the one taxable exception).
Gifts follow relationship lines — anything from close relatives or registered partners is exempt, while gifts from unrelated individuals are free only up to EUR 1,425 a year.
At a glance
- top rate
- 0% on inheritances; excess unrelated gifts join ordinary income
- entry band
- 0%
- tax year basis
- Gifts above the limits join the year's taxable income
- filing deadline
- Via the annual return where taxable
- residency basis
- Exemption applies whoever inherits
- regime flag
- Employer gifts exempt only to EUR 100 a year
Rates
Inheritances and gifts (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | All inheritances (except inherited copyright royalties, which are taxable income) |
| 0% | — | Gifts from spouses, close relatives and registered partners — unlimited |
| 0% | — | Gifts from other individuals up to EUR 1,425 a year |
| 25.5% / 33% scale | Excess value | Gifts above the limits, and employer gifts beyond EUR 100 a year |
Thresholds & allowances
- Unrelated-gift allowanceEUR 1,425 a year
Per recipient, for gifts from individuals outside the close family
- Employer childbirth giftEUR 500 per child
Exempt if paid within 6 months of birth
Residency
Residency trigger
The exemptions turn on the relationship and the gift's size, not on residence; heirs even inherit refund claims for the deceased's overpaid tax (3-year window).
Non-resident treatment
Foreign heirs of Latvian assets face no Latvian inheritance tax; taxable gifts from Latvian sources follow the ordinary income rules.
Notes
- There is no wealth tax; annual immovable-property tax applies locally, halved (up to EUR 500) for families with three or more children.
- Selling inherited property later uses the ordinary 25.5% capital-gains rules — the 60-month home exemption can apply if the heir lives there.
- Loans that function as disguised income can be recharacterized and taxed — informal family 'lending' has limits.
- Employer gifts are nearly always taxable — the exemption is a token EUR 100 a year.
FAQ
Does Latvia tax inheritances?
No — 0%; inheritances are exempt income for any heir, with only inherited copyright royalties remaining taxable.
Are gifts taxed?
Not from close relatives or registered partners — 0% without limit; gifts from unrelated individuals are exempt up to EUR 1,425 a year, with the excess taxed as ordinary income.
Figures: tax year 2026, compiled from public sources. Not tax advice.