Composition Composition shape Composition shape Composition shape


1.2. Property taxesEstate tax1.5% of the cadastral value of real estate
 Taxes on motor vehiclesVehicle Operating Tax
Business passenger vehicle tax
2.2. Income taxesPersonal income tax20% income up to EUR 20 004
23% income EUR 20 004-62800
31% above EUR 62800
 Micro-enterprise taxwith 01.01.22 becoming the UIN payer
 Corporate Income Tax (UIN)20% of distributed profits
20% of expenditure equated to a notionally distributed profit
Withholding UIN max. for non-residents:
management and advisory services – 20%
Disposal of real estate – 3%
Renting or leasing of real estate – 5%
max. offshoring companies - 20% excluding the supply of goods to the EU and EEA public securities
 Gift and inheritance taxesNot implemented


2.1.Universal ConsumptionVAT21% - standard rate
reduced rate: 12%, 5%, 0%.
2.2.Special consumptionExcise dutiesExcise goods: alcoholic beverages, tobacco products, their substitute products, petroleum products, natural gas, coffee, non-alcoholic beverages
2.3. Customs dutiesImport duties
Import/Export duties
Export duties
Agricultural policy

3. SOCIAL TAXES - State Social Insurance Mandatory Contributions (VSAOI)

VSAOI - a mandatory payment to a special budget account is prescribed by law
The mandatory contribution rate of -34.09%, of which 23.59% is paid by the employer and 10.50% by the worker.
Minimum amount of mandatory contributions per quarter - EUR 1500.
Annual ceiling: EUR 62 800
The subject of mandatory contributions above the ceiling is the subject of a solidarity tax of 25%.


The following special economic zones (SEZ) and freeports exist in Latvia:
Liepāja SEZ; Rezekne SEZ; Riga Free Port; Ventspils Free Port; Latgale SEZ

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