WorldTax Compareโ† All Comparisons

Bahamas vs Latvia
Tax Rate Comparison

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

๐Ÿ‡ง๐Ÿ‡ธ Bahamas
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
0%
No income tax maintained
No change
20โ€“31%
31% top; NATO spending affecting fiscal balance
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
10% VAT maintained
No change
12โ€“21%
21% standard maintained
No change
Corporate Tax Rate
Corporate Tax Rate
0%
No CIT; Pillar Two compliance via domestic top-up
No change
20%
20% distributed profits; Pillar Two active
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT
No change
20%
20% as income
No change
Social Security & Payroll
Social Security / Payroll
~9.8%
NIB; hurricane recovery spending affecting fiscal position
No change
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

๐Ÿ‡ง๐Ÿ‡ธ Bahamas โ€” Local Government Rates & Fees

The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax โ€” making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.

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.

Bahamas vs Latvia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฑ๐Ÿ‡ป Latvia has a higher top income tax rate (0% vs 20โ€“31%). ๐Ÿ‡ง๐Ÿ‡ธ Bahamas is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Latvia has a higher consumption tax (10% vs 12โ€“21%).

๐Ÿข Corporate Tax: ๐Ÿ‡ง๐Ÿ‡ธ Bahamas offers a lower corporate rate (0% vs 20%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ง๐Ÿ‡ธ Bahamas taxes investment gains at a lower rate (0% vs 20%), benefiting investors.

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