Latvia expat tax guide
Europe · how a foreigner who moves to Latvia is taxed · 2026 · High-tax for movers
If you move to Latvia, you become a tax resident when 183+ days in any 12-month period, or a declared place of residence in Latvia. As a resident you are taxed on a worldwide basis — Latvian tax residents are liable to PIT on worldwide income; non-residents only on Latvian-source income. The top personal income tax rate is 33%. A foreign pension is treated as: Taxed as ordinary income at 25.5%; pensioners get a raised allowance (about EUR 12,000/yr) so only the excess is taxed. Latvia has no special expat or retiree tax regime, so movers are taxed under the ordinary rules. It has a US tax treaty and lacks a US totalization agreement. Overall it reads as high-tax for movers for an inbound mover. General information, not tax advice — verify with Latvia's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Latvia expat tax at a glance
| Question | Latvia (2026) |
|---|---|
| When you become tax resident | 183+ days in any 12-month period, or a declared place of residence in Latvia |
| Residency day-count trigger | 183 days |
| How residents are taxed | Worldwide — Latvian tax residents are liable to PIT on worldwide income; non-residents only on Latvian-source income. |
| Top personal income tax rate | 33% |
| Foreign pension treatment | Taxed as ordinary income at 25.5%; pensioners get a raised allowance (about EUR 12,000/yr) so only the excess is taxed |
| Foreign capital gains / dividends | Flat 25.5% on capital gains and capital income; dividends already taxed at the corporate level are effectively 0% PIT, otherwise 25.5% |
| Special expat / non-dom / retiree regime | None |
| US income tax treaty | Yes |
| US social-security totalization | No |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for Latvia, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to Latvia
The first thing that matters is tax residency: 183+ days in any 12-month period, or a declared place of residence in Latvia. The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, Latvia taxes your worldwide income, so income earned abroad is in scope unless a treaty or special regime says otherwise. The top 33% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Taxed as ordinary income at 25.5%; pensioners get a raised allowance (about EUR 12,000/yr) so only the excess is taxed. Foreign capital gains and dividends: Flat 25.5% on capital gains and capital income; dividends already taxed at the corporate level are effectively 0% PIT, otherwise 25.5%. These outcomes can be overridden by a double-tax treaty, which decides whether the source country or Latvia taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
US citizens and social security in Latvia
| Question | Latvia |
|---|---|
| US income tax treaty? | Yes |
| US social-security totalization agreement? | No |
| Tax basis for residents | Worldwide |
| Top personal income tax | 33% |
A US tax treaty with Latvia helps reassign taxing rights and reduce withholding, and US citizens lean on the Foreign Earned Income Exclusion and Foreign Tax Credit to avoid double income tax. With no totalization agreement, you can be exposed to social-security-type charges in both the US and Latvia. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to Latvia
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| Latvia (this country) | Worldwide | 33% | None |
| Portugal | Worldwide | 48% | IFICI (NHR successor) |
| Spain | Worldwide | 47% | Beckham Law (regimen de impatriados) |
| France | Worldwide | 45% | Regime des impatries (Art. 155 B CGI) |
| Netherlands | Worldwide | 49.5% | 30% ruling (moving to 27%) |
| Belgium | Worldwide | 50% | Inbound taxpayers regime (STRIT) |
Frequently asked questions
When do you become a tax resident of Latvia?
183+ days in any 12-month period, or a declared place of residence in Latvia. The headline trigger is 183 days. Once resident, Latvia taxes you on your worldwide income. This is general information for 2026, not tax advice — verify with the official authority.
How does Latvia tax a foreign pension?
Taxed as ordinary income at 25.5%; pensioners get a raised allowance (about EUR 12,000/yr) so only the excess is taxed. Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
Does Latvia have a special expat tax regime?
No. Latvia has no dedicated expat, non-dom or retiree income-tax regime in our dataset — a mover is taxed under the ordinary rules (worldwide basis, top rate 33%).
Is Latvia good for US citizens or retirees?
Latvia has a US income tax treaty and does not have a US social-security totalization agreement. Without a totalization agreement, you can owe social-security-type contributions in both the US and here. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for Latvia compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. PIT reformed from 2025: brackets 25.5% (up to EUR 105,300) and 33% (above), plus a 3% solidarity-type levy over EUR 200,000. US treaty in force since 2000. No US totalization agreement. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with Latvia's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21