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Spain vs Latvia
Tax Rate Comparison

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

🇪🇸 Spain
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
19–47%
National rates stable; community variation continues
No change
20–31%
31% top; NATO spending affecting fiscal balance
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
4–21%
Basic food VAT returning toward normal rates
No change
12–21%
21% standard maintained
No change

Corporate Tax Rate

Corporate Tax Rate
25%
25% standard; digital services levy discussions
No change
20%
20% distributed profits; Pillar Two active
No change

Capital Gains Tax

Capital Gains Tax
19–28%
Progressive savings tax maintained
No change
20%
20% as income
No change

Social Security & Payroll

Social Security / Payroll
~37.2%
MEI surcharge continues gradual increase to 2032
+0.2pp vs 2025
~35.09%
Contribution rates stable; pension II pillar growing
No change
State, Regional & Local Taxes

🇪🇸 SpainAutonomous Community & Municipal Taxes

Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto económico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.

🇱🇻 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.

Spain vs Latvia: Key Tax Differences (2026)

💰 Income Tax: 🇪🇸 Spain has a higher top income tax rate (19–47% vs 20–31%). 🇱🇻 Latvia is more favourable for high earners.

🛒 VAT/Sales Tax: Both countries have comparable consumption tax rates (4–21% vs 12–21%).

🏢 Corporate Tax: 🇱🇻 Latvia offers a lower corporate rate (20% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇱🇻 Latvia taxes investment gains at a lower rate (20% vs 28%), benefiting investors.

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