What are the income tax rates in Latvia?

In Latvia, the personal income tax ranges from 20% – 31%. Corporations pay a 20% corporate tax rate. Capital gains are taxed at 20%. VAT is 21%.

Is Latvia crypto-friendly?

Latvia has standard tax treatment for cryptocurrencies (crypto score 3/5). Gains are generally taxed as capital gains or ordinary income.

How can you get residency in Latvia?

Latvia offers the following residency options: residency by investment. A minimum presence of 183 days per year is required. The path to citizenship takes approximately 10 years.

What is the cost of living in Latvia?

The cost of living in Latvia is affordable (index 50) (reference: 100 = New York City). Safety index is 6.5/10. Average internet speed is 145 Mbps. Compared to Western Europe or the US, Latvia offers excellent value for expats.

Is Latvia a good destination for digital nomads?

Latvia does not have a specific digital nomad visa, though foreigners can explore residency options or tourist stays. Average internet speed is 145 Mbps — suitable for remote work.

What is healthcare like in Latvia?

Healthcare quality in Latvia is good (score 6.8/10). International private health insurance is recommended.

Is Latvia a good place for remote work?

Latvia presents some challenges for remote work. Advantages include: 145 Mbps internet.

Latvia — Tax Guide, Residency & Cost of Living for Expats

Europe · Northern EuropeUpdated 2026

Tax Score

50/100Worldwide

Tax Data

Income Tax20% – 31%

Corporate Tax20%

Capital Gains20%

VAT/GST21%

Wealth TaxNo

Inheritance TaxNo

Residency & Visas

Golden VisaNo

Digital Nomad VisaNo

Min. Residency CostUSD 60,000

Citizenship in10 years

Cost of Living & Quality of Life

Cost of Living Index50

Safety6.5/10

Internet145 Mbps

Healthcare6.8/10

Gasoline$2.12/L

Tax Overview

Latvia uses a worldwide tax system with moderate rates. While residents are taxed on global income, rates are competitive compared to many developed nations.

Personal Income Tax

Personal income tax in Latvia ranges from 20% – 31% progressively.

Corporate & Capital Gains

The corporate tax rate is 20%. Capital gains are taxed at 20%.

Indirect Taxes & Wealth

VAT/GST is 21%, high by international standards. There is no wealth tax. There is no inheritance tax.

Crypto & Digital Assets

Latvia takes a standard approach to crypto taxation (score 3/5). Gains are generally treated as capital gains or ordinary income.

Compare with other countries

Residency Guide

Relocating to Latvia is accessible with multiple options. The country offers several residency pathways for foreigners.

Visa Options

Residency by Investment: Available with a minimum investment of USD 60,000.

Investment Requirements

Residency by investment requires a minimum of USD 60,000.

Path to Citizenship

The path to citizenship in Latvia takes approximately 10 years — a lengthy timeline by international standards. A minimum presence of 183 days per year is required.

Practical Considerations

As a non-LATAM destination, applicants should consider potential language barriers and cultural differences. Working with a local immigration attorney and verifying apostille/legalization requirements for documents is recommended.

Also consider: Monaco, Vatican City, Andorra

Lifestyle

Latvia has a moderate cost of living, with good standards at a reasonable price.

Cost of Living

With an index of 50, Latvia offers a balance between quality and price. Expenses are lower than New York City (index 100), but quality of life is high.

Safety & Infrastructure

A safety score of 6.5/10 indicates a generally safe environment, with normal precautions recommended. Fast internet at 145 Mbps average — excellent for remote work and streaming.

Healthcare

A healthcare score of 6.8/10 indicates a decent healthcare system. Private health insurance is recommended to supplement public services.

Quality of Life

Latvia has a Human Development Index of 0.879 (classification: very high). This indicates excellent standards of education, health, and living standards.

Data: 2026 · Source: tax_foundation,pwc,manual

Pros & Cons

Pros

No wealth tax
No inheritance tax
Residency by investment
Affordable cost of living (index 50)
Very high human development (HDI 0.879)

Cons

Worldwide tax system — global income taxed
Private health insurance recommended (6.8/10)
Long path to citizenship (10 years)
High VAT rate (21%)
Physical presence requirement (183+ days/year)

Frequently Asked Questions

Latvia operates under a worldwide tax system: taxes residents on worldwide income, regardless of where it is earned. The top personal income tax rate is 31%.