Expat Taxes in Latvia

[!WARNING] Latvia offers specific tax regimes for small businesses, but individual taxes are high.

The Micro-Enterprise Tax (MUN)

Latvia has a simplified tax regime for small entrepreneurs, though it has been restricted over the years.

• The Rate: If your revenue is under €25,000 per year, the tax rate is a flat 25% on your turnover. This covers income tax and social security.
• The Caveat: The 25% is calculated on your gross revenue, not profit. If you have significant business expenses, this regime is financially disastrous.

Standard Individual Taxation

If you live in Latvia on the Digital Nomad Visa and trigger tax residency (spending more than 183 days), you are subject to the standard progressive tax system.

• Income Tax: Progressive rates ranging from 20% up to 31% for higher earners.
• Social Contributions: These are the real killer. Mandatory state social insurance contributions (VSAOI) are roughly 34.09% (with the employer paying 23.59% and the employee 10.5%). If you are self-employed under the standard regime, you bear the brunt of this.