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Andorra vs Latvia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra
vs
๐Ÿ‡ฑ๐Ÿ‡ป Latvia
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“10%
10% top; EU alignment reforms ongoing
No change
20โ€“31%
31% top; NATO spending affecting fiscal balance
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4.5%
4.5% IGI โ€” lowest in Europe
No change
12โ€“21%
21% standard maintained
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10% IS; EU Association Agreement compliance
No change
20%
20% distributed profits; Pillar Two active
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT โ€” key differentiator
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~21.5%
CASS stable; healthcare system well-funded
No change
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra โ€” Parish Taxes & Local Levies

Andorra's 7 parishes (parrรฒquies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.

๐Ÿ‡ฑ๐Ÿ‡ป Latvia โ€” Municipal Income Tax

Latvia's 119 municipalities levy a local income tax portion โ€” 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamฤ ฤซpaลกuma nodoklis) is set by municipalities at 0.2%โ€“3% of cadastral value. Latvia uses the progressive income tax system introduced in 2018 (replacing the flat 23%). Vehicle tax and business risk duty are national.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Andorra vs Latvia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฑ๐Ÿ‡ป Latvia has a higher top income tax rate (0โ€“10% vs 20โ€“31%). ๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Latvia has a higher consumption tax (4.5% vs 12โ€“21%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra offers a lower corporate rate (10% vs 20%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฆ๐Ÿ‡ฉ Andorra taxes investment gains at a lower rate (0% vs 20%), benefiting investors.

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