WorldTax CompareAll Comparisons

Malta vs Latvia
Tax Rate Comparison

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

🇲🇹 Malta
vs
🇱🇻 Latvia
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
35% nominal; effective rates much lower via credits
No change
20–31%
31% top; NATO spending affecting fiscal balance
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5–18%
18% standard; EU VAT reform compliance
No change
12–21%
21% standard maintained
No change

Corporate Tax Rate

Corporate Tax Rate
35%
35% nominal; refund system adapted for Pillar Two
No change
20%
20% distributed profits; Pillar Two active
No change

Capital Gains Tax

Capital Gains Tax
0–12%
8%/12% maintained
No change
20%
20% as income
No change

Social Security & Payroll

Social Security / Payroll
~20%
20% combined; pension system review
No change
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

🇲🇹 MaltaLocal Council Taxes

Malta's 68 local councils (kunsilli lokali) have limited taxing powers — primarily fees for refuse collection, minor local services, and permits. Income tax, VAT, and company tax are all national. Malta is a significant EU financial services hub offering a full imputation dividend tax credit system that can reduce corporate effective tax rates to as low as 5% for non-resident shareholders. Malta has attracted gaming companies, crypto regulation pioneers, and financial services firms with its competitive holding company structures and refund system.

🇱🇻 LatviaMunicipal 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.

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

Malta vs Latvia: Key Tax Differences (2026)

💰 Income Tax: 🇲🇹 Malta has a higher top income tax rate (0–35% vs 20–31%). 🇱🇻 Latvia is more favourable for high earners.

🛒 VAT/Sales Tax: Latvia has a higher consumption tax (5–18% vs 12–21%).

🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 35%), which can influence business location decisions.

📈 Capital Gains: 🇲🇹 Malta taxes investment gains at a lower rate (12% vs 20%), benefiting investors.

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All 🇲🇹 Malta comparisons →All 🇱🇻 Latvia comparisons →