Latvia vs Liechtenstein
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฑ๐ป 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%โ3% 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.
๐ฑ๐ฎ Liechtenstein โ Municipal Tax Supplements
Liechtenstein's 11 municipalities levy a municipal supplement on national income tax ranging from 150%โ250% of the base amount. Liechtenstein is a financial centre with very competitive corporate and income taxes. The Principality has a customs and currency union with Switzerland (using Swiss franc). It joined the EEA in 1995 and is noted for its foundation and trust law used for wealth structuring globally.
Latvia vs Liechtenstein: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐ป Latvia has a higher top income tax rate (20โ31% vs 2.5โ22.4%). ๐ฑ๐ฎ Liechtenstein is more favourable for high earners.
๐ VAT/Sales Tax: Latvia has a higher consumption tax (12โ21% vs 8.1%).
๐ข Corporate Tax: ๐ฑ๐ฎ Liechtenstein offers a lower corporate rate (12.5% vs 20%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐ฎ Liechtenstein taxes investment gains at a lower rate (0% vs 20%), benefiting investors.