Latvia Tax Simulator 2026: Calculate Your Taxes

How much would you save by forming an SIA in Latvia?

Annual revenue €200,000

Profit margin 30%

Director's pay (net annual) €40,000

🇫🇷 Tax & contributions (25% CIT jurisdiction)

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🇱🇻 Tax & contributions in Latvia

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Annual saving

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Monthly saving

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That's extra money for you and your business, every month.

See the calculation breakdown

🇫🇷 25% CIT jurisdiction (e.g. France, SASU)

Profit before pay—

Social contributions on pay (45%)—

Taxable profit (CIT)—

Corporate tax (25%)—

Flat tax on dividends (30%)—

Total net in your pocket—

🇱🇻 Latvia (SIA)

Profit before pay—

VSAOI social contributions (34.09%)—

Distributable profit—

CIT on distribution (20%)—

Dividend flat tax (0%, CIT already paid)€0

Total net in your pocket—

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Gross → net salary in Latvia

Monthly gross salary €1,500

Dependants 0

Pensioner status (higher allowance)

VSAOI (employee, 10.5%)

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IIN (25.5% / 33%)

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Net monthly salary

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Monthly employer cost

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See the calculation breakdown

Annual gross salary—

VSAOI employee (10.5%, cap €105,300/year)—

Neapliekamais minimums + atvieglojumi (allowances)—

IIN taxable base—

IIN due (annual)—

VSAOI employer (23.59%) + risk fee (€0.36/month)—

Self-employed (saimnieciskā darbība)

Annual income (revenue) €40,000

Justified expenses (general regime only) €5,000

General regime
IIN + VSAOI 31.07% Micro-business (MUN)
25% of revenue, flat

Contributions / tax

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Net annual income

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See the calculation breakdown

Taxable base (revenue − expenses)—

VSAOI (general regime) or MUN tax—

IIN on the balance (general regime only)—

Corporate tax and dividends (SIA)

Annual profit to distribute €50,000

Alternative 15% CIT + 6% IIN regime (individual shareholders only)

Total tax (CIT + IIN)

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Net for the shareholder

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Reminder: if profit stays within the company (undistributed), CIT remains at 0%, regardless of the regime.

See the calculation breakdown

Distributed profit—

CIT (20% standard, or 15% alternative regime)—

Additional IIN (6%, alternative regime only)—

Capital income, rental income, capital gains

Annual gain / income €10,000

Net after tax (25.5%)

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Standard rate 25.5%. Transitional rates of 10% or 20% exist for certain specific cases (e.g. disposal of a qualifying shareholding) — not modelled here, check case by case.

* Indicative simulation based on 2026 Latvian rates and thresholds in force (VID, Finanšu ministrija) and a standard assumption of ~45% social charges for a comparable foreign structure. Actual amounts depend on your individual situation (tax treaties, residency status, special cases). Consult a professional for a personalised review before making any decision.
2026 Latvia rules — sources: VID (vid.gov.lv), Finanšu ministrija (fm.gov.lv).

Latvia Tax Simulator

How much would you save by forming an SIA in Latvia?

Gross → net salary in Latvia

Self-employed (saimnieciskā darbība)

Corporate tax and dividends (SIA)

Capital income, rental income, capital gains

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