Europe · EUR
Latvia
Reviewed 2026-06-21
Top income tax
33%
Self-employed SS
Yes
VAT
21%
Capital gains
25.5%
Exit tax
No
Nomad visa
Yes
61
/ 100
Tax efficiency36
Ease to enter92
Ease to exit65
Cost of living76
Internet43
English100
Latvia taxes residents on worldwide income through a progressive system with a 25.5 percent entry rate and a 33 percent top rate, while companies pay tax only when profits are distributed under a 20 percent distribution model with a 25 percent effective rate. There is no wealth tax and no individual exit tax, but mandatory social contributions are high for the self employed at over 31 percent. A government remote work visa exists for OECD based employees and freelancers earning at least about 4,200 euros per month, and the country offers fast broadband and strong business English.
Personal income tax
Income tax structureProgressive
Top income tax rate33%
Entry income tax rate25.5%
Top rate threshold$113,700
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate10.5%
Employer SS rate23.59%
Indirect & other taxes
VAT standard rate21%
Capital gains rate25.5%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate33%
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate20%
WHT on dividends0%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$4,560
Entrepreneur visaYes
Ease of setup5 / 5
Lifestyle
Cost of living index50
Internet speed191 Mbps
English proficiencyHigh
Civil liberties87
Sources
- PwC Worldwide Tax Summaries — Latvia Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Latvia Individual: Other taxes (social security, VAT, gift tax)
- PwC Worldwide Tax Summaries — Latvia Corporate: Taxes on corporate income
- PMLP (Latvia Office of Citizenship and Migration Affairs) — Obtaining a long-stay visa for remote work
- EF English Proficiency Index — Latvia
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.