Latvia vs Bhutan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇱🇻 Latvia — Municipal Income Tax
Latvia's 119 municipalities levy a local income tax portion — 80% of income tax goes to municipalities, 20% to the state. The effective split means municipalities directly benefit from local earnings. Property tax (nekustamā īpašuma nodoklis) is set by municipalities at 0.2%–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.
🇧🇹 Bhutan — Dzongkhag & Thromde Taxes
Bhutan's 20 dzongkhags (districts) and thromdes (municipalities) levy local land tax, cattle tax, and local fees. Bhutan is a constitutional monarchy pursuing Gross National Happiness over GDP. Corporate and business income taxes are primary revenue sources; personal income tax is minimal for most citizens given the country's structure. Bhutan has major hydropower export revenues from India and has become notable for state-enterprise cryptocurrency mining. The country is transitioning toward more market-oriented development with LDC graduation aspirations.
Latvia vs Bhutan: Key Tax Differences (2026)
💰 Income Tax: 🇱🇻 Latvia has a higher top income tax rate (20–31% vs 0–25%). 🇧🇹 Bhutan is more favourable for high earners.
🛒 VAT/Sales Tax: Latvia has a higher consumption tax (12–21% vs 0%).
🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 30%), which can influence business location decisions.
📈 Capital Gains: 🇧🇹 Bhutan taxes investment gains at a lower rate (0% vs 20%), benefiting investors.