Tax in Latvia: VAT, income tax, company tax, capital gains
21%
Latvia charges 21% PVN on most goods and services. The rate is verified against Valsts ienemumu dienests (VID / State Revenue Service) / EU TEDB on 19 August 2026; the top personal income-tax rate is 36% (2026 tax year, Finanšu ministrija (Ministry of Finance of Latvia)), and the headline company tax rate is 20% (OECD Corporate Tax Statistics).
PVN in Latvia
Value-added: PVN is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 21%
- Local name
- PVN — Value Added Tax
- Type
- VAT
- Reduced rates
- 12%
- Filing
- Quarterly / Monthly / Annual
- Authority
- Valsts ienemumu dienests (VID / State Revenue Service) / EU TEDB
- Current rate since
- 1 January 2000
Income tax in Latvia
The top personal income-tax band is 36% for the 2026 tax year (shown as 33% (+3% above €200k) in the rates table, which includes levies).
Company tax in Latvia
The headline corporate income tax rate is 20%. In effect since 1 January 2026.
Indicative only: confirm with Latvia's national tax authority. OECD-only: 20% (Latvia taxes distributed profits; 20% of gross distribution = 20/80 of net). OECD's 'targeted at small business' series shows 25% for Latvia, which is higher than the general rate and probably reflects a separate small-business regime; not recorded as a reduced rate. National source (vid.gov.lv) unreachable. | Cross-check: OECD 2026: central statutory CIT 20%, combined (central+sub-central) 20%; small-business combined 25%
Capital gains tax in Latvia
- Shares
- Capital gains are taxed as income from capital gains at a flat 25.5% PIT rate (from 1 Jan 2025; 20% until 31 Dec 2024). Additional 3% PIT applies to the part of total annual income (including capital gains and capital income) exceeding EUR 200,000 (from 2025, self-assessed in the annual return).
- Property
- Flat 25.5% PIT on income from sale of real estate (treated as capital gain), from 1 Jan 2025 (20% before); 3% additional rate on total annual income above EUR 200,000.
- Holding period
- None identified for listed shares.
Ask your AI assistant about tax in Latvia
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the PVN rate in Latvia, and what is the source?”
- “Estimate income tax in Latvia on EUR 60,000 for 2026.”
- “What is the company tax rate in Latvia and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Latvia, answered
Questions about tax in Latvia
- What is the PVN rate in Latvia?
- The standard PVN (Value Added Tax) rate in Latvia is 21%, verified against Valsts ienemumu dienests (VID / State Revenue Service) / EU TEDB on 19 August 2026. A reduced rate of 12% applies to some categories. Value-added: PVN is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the top income tax rate in Latvia?
- The top personal income-tax band in Latvia is 36% for the 2026 tax year, verified against Finanšu ministrija (Ministry of Finance of Latvia) on 6 October 2026. The free income-tax calculator on this site works through the bands below it, and shows the rate table it used.
- What is the company tax rate in Latvia?
- The headline corporate income tax rate in Latvia is 20%, as published by OECD Corporate Tax Statistics (checked 6 October 2026, verification pending). Indicative only: confirm with Latvia's national tax authority. OECD-only: 20% (Latvia taxes distributed profits; 20% of gross distribution = 20/80 of net). OECD's 'targeted at small business' series shows 25% for Latvia, which is higher than the general rate and probably reflects a separate small-business regime; not recorded as a reduced rate. National source (vid.gov.lv) unreachable. | Cross-check: OECD 2026: central statutory CIT 20%, combined (central+sub-central) 20%; small-business combined 25%
- How is capital gains tax charged in Latvia?
- In Latvia, gains are taxed at their own rate, separate from income, verified against State Revenue Service (VID) - methodological material 'IIN no nekustamā īpašuma atsavināšanas ienākuma' (updated 12.05.2026) on 6 October 2026. On shares: Capital gains are taxed as income from capital gains at a flat 25.5% PIT rate (from 1 Jan 2025; 20% until 31 Dec 2024). Additional 3% PIT applies to the part of total annual income (including capital gains and capital income) exceeding EUR 200,000 (from 2025, self-assessed in the annual return). Holding period: None identified for listed shares.
- Can an AI assistant look up tax rates for Latvia?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the PVN rate, an income-tax estimate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
Sources
- Valsts ienemumu dienests (VID / State Revenue Service) / EU TEDB
- Finanšu ministrija (Ministry of Finance of Latvia)
- OECD Corporate Tax Statistics
- State Revenue Service (VID) - methodological material 'IIN no nekustamā īpašuma atsavināšanas ienākuma' (updated 12.05.2026)
Last checked 6 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
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