Latvia Wealth Tax Guide 2026

Overview — No Wealth Tax in Latvia

Latvia is one of the European countries that does not impose a wealth tax (bagātības nodoklis) on individuals or companies. The Latvian tax system relies primarily on income taxes (IIT, CIT), consumption taxes (VAT), property taxes (NIN), and social contributions. There is no annual tax on net worth, total assets, or any measure of personal or corporate wealth. This policy aligns Latvia with other Baltic and Nordic countries that have abolished wealth taxes, making it a competitive jurisdiction for wealth management and private clients.

Taxes Latvia Does Not Impose

• No annual net wealth tax: Latvia does not tax individuals or companies based on their net worth (assets minus liabilities). There is no Impôt sur la Fortune or similar tax.
• No real estate wealth tax: Latvia does not impose a wealth tax on real estate holdings. The annual real estate tax (NIN, 0.2–3% of cadastral value) is a property tax, not a wealth tax.
• No solidarity tax: There is no additional tax on high-income earners or high-net-worth individuals beyond standard IIT rates (20–31%).
• No luxury tax: Latvia does not impose luxury taxes on cars, yachts, private jets, jewellery, art, or other high-value personal assets.
• No wealth transfer tax: No inheritance tax or estate duty for close family members. No gift tax for direct line transfers.
• No bank account tax: No tax on bank deposits or cash holdings.
• No investment portfolio tax: No annual tax on investment portfolios, securities holdings, or mutual fund units.

Property Tax vs Wealth Tax

While Latvia does not have a wealth tax, it does impose an annual real estate tax (Nekustamā īpašuma nodoklis, NIN):

• Rate: 0.2% to 3% of cadastral value depending on property type and municipality
• Scope: Applies to land, buildings, and structures. Does not apply to financial assets, cash, or other personal property.
• Nature: NIN is a property tax (local tax), not a wealth tax. It is based on the value of specific immovable assets, not on the taxpayer's total net worth.

Comparison with Other European Countries

Latvia's absence of wealth tax distinguishes it from several European countries that still impose wealth taxes:

• France: IFI (Impôt sur la Fortune Immobilière) at 0.5–1.5% on real estate assets exceeding EUR 1.3 million
• Switzerland: Cantonal net wealth tax at 0.2–1.0% depending on canton
• Spain: Wealth tax at 0.2–3.5% on net assets exceeding EUR 700,000 (depending on region)
• Norway: Net wealth tax at 0.95% on assets exceeding NOK 1.7 million
• Netherlands: Deemed return on savings and investments at 30% (effective wealth tax on investment assets)
• Latvia: No wealth tax — no annual tax on personal or corporate net worth

Tax Implications for High-Net-Worth Individuals

The absence of wealth tax has several implications for high-net-worth individuals considering Latvia:

• Investment holding: No annual tax on investment portfolios, making Latvia attractive for passive investors
• Real estate holding: Only the low-rate NIN (0.2–3%) applies to multiple property holdings, not a wealth tax on total property value
• Corporate holding structures: No corporate wealth tax (unlike Luxembourg's NWT or other jurisdictions)
• Residency planning: Latvia offers favourable tax treatment for wealthy individuals, though income taxes (IIT up to 31%) still apply to Latvia-source income

FAQs

Does Latvia have any plans to introduce a wealth tax?

As of 2026, there are no official proposals to introduce a wealth tax in Latvia. The government has focused on income tax reform and improving the tax-to-GDP ratio through other measures. Wealth tax is not currently part of the political agenda.

If there is no wealth tax, what taxes apply to my assets?

While there is no wealth tax, you may still be subject to: property tax on real estate (NIN 0.2–3%), income tax on investment returns (20% on dividends, interest, and capital gains), capital gains tax on asset sales (20% or 0% after 12 months), and social contributions on Latvian-source employment income.

How does Latvia compare to other Baltic states on wealth taxation?

Latvia, Estonia, and Lithuania all do not impose wealth taxes. Among the three Baltic states, Latvia's tax system is generally considered competitive for investment and wealth holding, with no annual wealth tax, no inheritance/gift tax for direct line, and favourable capital gains treatment.

Disclaimer

This guide provides general information about Latvia wealth tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Latvian tax advisor (nodokļu konsultants) or VID directly for advice specific to your situation. InvestmentKit does not provide tax advice.