Latvia capital gains tax calculator

An individual's capital gains are taxed at a flat capital-income rate: 25.5% from the 2025 tax year, and 20% for 2021 to 2024. The same rate covers shares, fund certificates, unlisted stakes, crypto, property and other capital assets. Transactions initiated by 31 December 2024 but not completed then, and declared as initiated but not completed, keep the 20% rate through 2027.

If your total capital-asset income in a quarter is over EUR 1,000 you file the capital-income declaration quarterly, by the 15th of the following month, and pay by the 23rd of that month. If no quarter exceeds EUR 1,000, the annual declaration is due by 15 January of the following year, with payment by 23 January. The VID pre-fills the DK declaration from Latvian brokers' reporting.

No. A loss on one capital asset can be covered by a gain on another in the same tax year, but a negative annual capital gain cannot be set against later years or against other income (Section 11.9(10)). Crypto losses are further restricted: they can only be covered by gains on the same type of asset (Section 11.9(9.2)).

An individual's capital gains are taxed at 25.5%. The 25.5% rate applies from 1 January 2025 (amendment of 4 December 2024, in force 11 December 2024) and replaced the 20% rate that applied through 2024. The gain is the disposal price less the acquisition value and the documented investments made in the asset during ownership (Section 11.9(1)); for crypto assets the gain is the disposal price less the initial acquisition value, and where the initial acquisition value cannot be established it is taken as zero (Section 11.9(1.1)). Sources: https://likumi.lv/ta/id/56880 and https://www.vid.gov.lv/en/income-tax-capital-gains

Capital assets are defined in Section 11.9(2): shares, capital shares, stakes, partnership investments and other Financial Instrument Market Law instruments; investment fund certificates and other transferable securities evidencing a holding in investment funds; debt instruments and money-market instruments; immovable property including the right to acquire it; an enterprise under the Commercial Law; intellectual-property objects; investment gold, other precious metals and objects traded on a currency or commodity exchange; and crypto assets. Source: https://likumi.lv/ta/id/56880

Three immovable-property exemptions, with the statute's exact edges (Section 9(1)): (33) the property has been in the taxpayer's ownership (from the day it was registered in the Land Register) for MORE THAN 60 MONTHS and for at least 12 consecutive months within that 60-month period up to the day the disposal contract is concluded it was the person's declared place of residence (not declared as an additional address); (33.1) it has been owned for more than 60 months and for the last 60 months up to the disposal day it has been the taxpayer's ONLY immovable property; (34.2) it is registered in the Land Register as the taxpayer's only immovable property and the income is reinvested in a functionally similar immovable property within 12 months after the disposal or before it. A property held exactly 60 months does not meet the more-than-60-months wording. Source: https://likumi.lv/ta/id/56880

Acquisition value (Section 11.9(5)): acquisition-related expenses including state duties for the transaction, inheritance or land-register registration and commission and similar costs; documented interest on a loan taken to acquire the asset; and securities acquisition and holding expenses. Documented improvement and restoration expenses on immovable property made after 31 December 1993 are investments during ownership (Section 11.9(5.1)). Notional values: where immovable property was acquired before 31 December 2000 and no documents prove the acquisition value, the acquisition value is the current cadastral value in the year of disposal divided by the consumer price index for the last ten years before the disposal (Section 11.9(7.1)); self-built housing handed over from 1 January 2001 with no expense documents uses the cadastral value of the year of hand-over (11.9(7.2)); a gift from a close relative sold within 60 months uses the donor's acquisition value or the cadastral-value rules of 11.9(7.3). Inherited assets take the value stated in the inheritance mass and gifts the value stated in the gift contract capped at the disposal price (11.9(4)); shares acquired by exercising purchase rights take the market value on the exercise date (11.9(4.1)). Source: https://likumi.lv/ta/id/56880

Losses: the year's capital gains on all disposals are added together (Section 11.9(8)) and a loss on one capital asset may be covered by the positive capital gain on another in the same tax year (11.9(9)). Crypto-asset losses may be covered ONLY by a positive capital gain from disposing the same type of capital asset (11.9(9.2)); a gift-contract loss where the stated gift value exceeds the disposal value is disregarded (11.9(9.1)). If the year's capital gain is negative, the loss cannot be covered from later tax years' capital gains or from other kinds of income of the tax year (11.9(10)): there is no carryforward. Source: https://likumi.lv/ta/id/56880

A resident whose total income from capital-asset transactions in a quarter exceeds EUR 1,000 files the capital-income declaration once a quarter by the 15th day of the month following the quarter; if a quarter's total does not exceed EUR 1,000, the declaration for the whole tax year is filed by 15 January of the following year, and the tax is paid into the single tax account by the 23rd day of the month in which the declaration is filed (Section 19(5.3) and 19(3.2)). An annual capital-gains income adjustment declaration may be filed by 1 February of the following year to cover same-year losses not fully covered. Sources: https://likumi.lv/ta/id/56880 and https://www.vid.gov.lv/en/due-dates-filing-returns-and-paying-taxes

From 2025 a 3% additional rate applies in the annual reconciliation to the excess of the year's total taxable income over EUR 200,000; the base expressly includes income from capital gains and income from capital that is not capital gains (Section 15.1, introduced by the 4 December 2024 amendment). Sources: https://likumi.lv/ta/id/56880 and https://www.vid.gov.lv/en/personal-income-tax-rates

Transitional provision 196: a 20% rate applies in 2025, 2026 and 2027 to capital gains on transactions with capital assets that were initiated by 31 December 2024, were not completed by 31 December 2024, and were declared with information on transactions initiated but not completed in one tax year. Sources: https://likumi.lv/ta/id/56880 and https://www.vid.gov.lv/en/personal-income-tax-rates