DoubleTaxationTaxes on salary: Latvia preliminary data
How much income tax and social contributions are paid on a salary in Latvia, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | €60,001 |
|---|---|
| Income tax | €12,011 |
| Employee contributions | €6,300 |
| Take-home pay | €41,690 |
| Employer contributions and payroll taxes | €14,154 |
| Employer's labour cost | €74,155 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 | €60,000 | €120,000 |
|---|---|---|---|
| Sole proprietor | €8,683 32.2 % | €17,579 32.6 % | €35,373 32.8 % |
| Company | €5,400 20.0 % | €10,800 20.0 % | €21,600 20.0 % |
| Sole proprietor · Mikrouzņēmumu nodoklis (micro-enterprise tax) | €7,500 27.8 % | above the regime's limit | above the regime's limit |
Special tax regimes
Jaunuzņēmumu atbalsta programma — fiksētais maksājums (start-up fixed payment)
For employees
Who: Employees of start-ups admitted to the state start-up support programme (innovative capital companies meeting the law's age, investment and activity conditions), for the support period.
Start-up pays social insurance for an employee only on a fixed base of two minimum monthly wages, and the employee pays no personal income tax on that salary (but loses the non-taxable minimum); the employee must add pension contributions of at least 10% of the difference between gross pay and the fixed base.
Legal basis: Jaunuzņēmumu darbības atbalsta likums, 6. un 8. pants
Tax residence
The tax residence check does not cover Latvia yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1.000012 EUR (ECB euro reference rate, 2026-01-02) ↗
Sources
- Likumi.lv (official legal database) — Law on Personal Income Tax, arts. 12, 15, 15.1, transitional provision 197
- Likumi.lv — Law on State Social Insurance, arts. 14(5), 18
- Likumi.lv — Corporate Income Tax Law, arts. 3, 4, 4.2
- Likumi.lv — Micro-enterprise Tax Law, art. 6
- OECD Tax Database — Social security contributions, self-employed rates (2025)
- OECD Tax Database — Corporate income tax and dividend tax rates, 2026
- Likumi.lv — Jaunuzņēmumu darbības atbalsta likums (Law on Aid for Start-up Companies), arts. 6-8
- Likumi.lv — Pievienotās vērtības nodokļa likums, art. 59 (registration threshold EUR 50,000)
- Cabinet Regulation on the minimum monthly wage (EUR 780 from 2026, MK 19.11.2025 No. 680)
Data checked: 2026-11-08. An indicative calculation for a typical case. Not tax advice.