Latvia income tax

Latvia tax calculator

Enter your income to estimate what you would pay in Latvia, as an employee or running your own company, and see the best-value cities. Get the full breakdown plus a vetted advisor by email.

How much is income tax in Latvia?

Latvia taxes personal income at rates up to 36%. Residents are taxed on worldwide income at the 25.5% PIT rate.

Compiled by MyNomadWorld for Latvia and currently being re-verified against primary sources. Confirm with a local adviser before relying on it.

Latvia digital nomad visa

Long-stay (D) visa for remote work (Digital Nomad Visa)

• Income requirement: 2.5x the prior year's average gross monthly wage; officially listed as €4,213 (recalculated annually). Employer/self-employment must be registered in an OECD country
• Initial length: 12 months · renewable
• Max stay: Up to 1 year, renewable for 1 more year (max 2 years). After 2 cumulative years must switch to a residence permit or stay abroad >=6 months before reapplying. No right to local employment
• Tax on nomad income: Tax residency via 183-day rule; foreign remote income otherwise taxed abroad
• Family / dependents: Yes

Official source: Long-stay (D) visa for remote work (Digital Nomad Visa) · as of 2026

Latvia expat & digital-nomad tax regime

Under the Tipo general PIT 25,5% regime, a qualifying new resident or foreign-income remote worker pays an effective rate of about 25.5% instead of the 36% headline.

Official source: PwC Latvia

Capital gains, wealth & property tax

• Capital gains: 25.5% (aligned with the 2025 PIT reform)
• Wealth tax: Latvia has no net wealth tax.

Inheritance & gift tax in Latvia

Latvia has no inheritance tax and no estate tax. No tax. Gifts between spouses and relatives up to the third degree are fully exempt.

Corporate tax & VAT

The standard corporate profits tax is 20%.

How to become a tax resident of Latvia

Residente si permanece 183+ dias en un periodo de 12 meses, tiene residencia declarada en Letonia o su centro de intereses economicos esta en el pais.

Cost of living & lifestyle

Cost of living is about 57% of the US level, with average purchasing power near $46k (PPP). Pick a city below to see its monthly climate and cost.

Banking in Latvia

You will want a local or multi-currency account for rent, bills and getting paid. See our guide to the best banks in Latvia.

For receiving income and moving money the day you arrive, Wise lets you hold and convert 40+ currencies and get paid like a local. Open a free Wise account →

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Climate & cost by city

Average monthly temperature (°C) and rainfall. Climate: Open-Meteo ERA5; cost of living: World Bank PPP (same-year pairing), omitted where unavailable.

Latvia tax treaties

Latvia maintains around 63 double taxation treaties in force. They generally follow the OECD Model Convention and reduce withholding tax on cross-border dividends, interest and royalties, so the same income is not taxed twice when you move, invest or earn across borders. That is a broad network, useful for internationally mobile earners and investors.

Major treaty partners

Chips with a link open the full withholding-tax detail for that treaty pair.

Approximate size of the DTA network; confirm the specific treaty and its terms before relying on it.

Latvia tax treaty guides

Detailed double-tax-treaty guides (withholding rates on dividends, interest and royalties) are available for 16 of Latvia's partners:

Albania · Armenia · Azerbaijan · China · Georgia · India · Kyrgyzstan · Mexico · Moldova · Morocco · North Macedonia · Tajikistan · Turkmenistan · Ukraine · Uzbekistan · Vietnam