IS · EuropeLV · Europe
Iceland vs Latvia: tax rates compared
Iceland's income tax rate is 13.3pp higher than Latvia's (46.3% vs 33%). The 200-country average is 28%: both sit above it.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IS | LV | Difference |
|---|---|---|---|
| Income Tax | 46.3% | 33% | IS +13.3 pplargest gap |
| Corporate Tax | 20% | 20% | match |
| VAT | 24% | 21% | IS +3 pp |
| Capital Gains Tax | 22% | 25.5% | LV +3.5 pp |
| Crypto Tax | 22% | 25.5% | LV +3.5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Latvia | 33% | Source: State Revenue Service of Latvia (VID) — Personal Income Tax rates · as of 2025-12-30 |
| Difference | +13.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Latvia | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | 0 pp | displayed rates match |
Iceland's corporate tax rate is identical to Latvia's — both sit at 20%. The 201-country average is 22.6%: both sit below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Latvia | 21% | Source: PWC Worldwide Tax Summaries — Latvia (Corporate, Other taxes) · as of 2026-06-30 |
| Difference | +3 pp | Iceland higher |
Iceland's VAT rate is 3pp higher than Latvia's (24% vs 21%). The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| Latvia | 25.5% | Source: PWC Worldwide Tax Summaries — Latvia (Individual, Income determination) · as of 2026-06-30 |
| Difference | −3.5 pp | Latvia higher |
Latvia's capital gains tax rate is 3.5pp higher than Iceland's (25.5% vs 22%). The 175-country average is 10.3%: both sit above it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 22% | Source: Skatturinn (Icelandic Revenue and Customs) — Rafmynt (Cryptocurrency) · as of 2026-07-19 |
| Latvia | 25.5% | Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Latvia · as of 2025-10-01 |
| Difference | −3.5 pp | Latvia higher |
Latvia's crypto tax rate is 3.5pp higher than Iceland's (25.5% vs 22%). The 88-country average is 13%: both sit above it. Iceland's figure is dated 2026-07-19 and Latvia's 2025-10-01, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Iceland | 0% | Source: PWC Worldwide Tax Summaries — Iceland (Individual, Other taxes) · as of 2026-06-22 |
| Latvia | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-06-30 |
| Difference | 0 pp | displayed rates match |
Iceland's wealth tax rate is identical to Latvia's — both sit at 0%. The 193-country average is 0.1%: both sit below it.