Netherlands vs Latvia
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
🇳🇱 Netherlands — Municipal & Water Board Taxes
The Netherlands is a unitary state — income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.
🇱🇻 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.
Netherlands vs Latvia: Key Tax Differences (2026)
💰 Income Tax: 🇳🇱 Netherlands has a higher top income tax rate (9.32–49.5% vs 20–31%). 🇱🇻 Latvia is more favourable for high earners.
🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (9–21% vs 12–21%).
🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 25.8%), which can influence business location decisions.
📈 Capital Gains: 🇱🇻 Latvia taxes investment gains at a lower rate (20% vs 38%), benefiting investors.