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Latvia

Northern Europe · LV · 63 treaties

What are the main tax rates in Latvia?

Latvia has a 20% corporate tax rate, a top personal income tax rate of 31.4%, and a standard VAT of 21%.

Tax profile

Corporate income tax 20%
Withholding — dividends 0%
Withholding — interest 0%
Withholding — royalties 0%
VAT / GST (standard) 21%
Personal income (top rate) 31.4%
Capital gains 25.5%
Tax system Worldwide
Residency threshold 183 days
Exit / departure tax Yes
CFC rules Yes
Transfer pricing Oecd Aligned
Digital nomad visa Remote Work Visa (Long‑stay visa for employment with foreign employer)
Digital services tax none
Global minimum tax (Pillar 2) None

Common questions

How long does it take to become a tax resident in Latvia?
You can become a tax resident in Latvia after residing there for 183 days.
Does Latvia have a digital nomad visa?
Yes, Latvia offers a visa for digital nomads.
What is Latvia's capital gains tax rate?
Capital gains in Latvia are taxed at 25.5%.

Tax residency

Moderate

What makes you a tax resident — and how hard it is to stop being one.

Latvia does not use citizenship or domicile as the core residency test; the main triggers are a registered address and a 183-day rule. Leaving is usually manageable, but a registered residence must be undone and day-count/ties need to be aligned so the person no longer meets the statutory tests.

Source: PwC Worldwide Tax Summaries

Tax treaty network (66)

In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.

PartnerDivIntRoy
Argentina
Armenia
Austria
Azerbaijan
Belarus
Belgium
Bulgaria
Canada
China
Croatia
Cyprus
Czechia
Denmark
Egypt
Estonia
Finland
France
Georgia
Germany
Greece
Hungary
Iceland
India
Ireland
Israel
Italy
Japan
Kazakhstan
Kyrgyzstan
South Korea
Kuwait
Lithuania
Luxembourg
Malta
Moldova
Netherlands
Norway
Poland
Portugal
Romania
Russia
Saudi Arabia
Republic of Serbia
Singapore
Slovakia
Slovenia
Spain
Sweden
Switzerland
Tajikistan
Thailand
Turkey
Turkmenistan
Ukraine
United Arab Emirates
United Kingdom
United States of America
Uzbekistan
Vietnam
American Samoa
Anguilla
Guam
Palau
Panama
Turks and Caicos Islands
Vanuatu