LV · EuropePW · Oceania
Latvia vs Palau: tax rates compared
Between the two, Latvia's income tax rate (33%) tops Palau's (12%) by 21pp. The 200-country average is 28%: Latvia sits above it, Palau sits below it. Latvia's figure is dated 2025-12-30 and Palau's 2026-07-20, so the two rates come from different data vintages.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | LV | PW | Difference |
|---|---|---|---|
| Income Tax | 33% | 12% | LV +21 pp |
| VAT | 21% | 10% | LV +11 pp |
| Capital Gains Tax | 25.5% | 0% | LV +25.5 pplargest gap |
| Crypto Tax | 25.5% | 0% | LV +25.5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 33% | Source: State Revenue Service of Latvia (VID) — Personal Income Tax rates · as of 2025-12-30 |
| Palau | 12% | Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20 |
| Difference | +21 pp | Latvia higher |
VAT
| Country | Rate | Source |
|---|---|---|
| Latvia | 21% | Source: PWC Worldwide Tax Summaries — Latvia (Corporate, Other taxes) · as of 2026-06-30 |
| Palau | 10% | Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01 |
| Difference | +11 pp | Latvia higher |
Between the two, Latvia's VAT rate (21%) tops Palau's (10%) by 11pp. The 181-country average is 15%: Latvia sits above it, Palau sits below it. Latvia's figure is dated 2026-06-30 and Palau's 2023-01-01, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 25.5% | Source: PWC Worldwide Tax Summaries — Latvia (Individual, Income determination) · as of 2026-06-30 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +25.5 pp | Latvia higher |
Between the two, Latvia's capital gains tax rate (25.5%) tops Palau's (0%) by 25.5pp. The 175-country average is 10.3%: Latvia sits above it, Palau sits below it.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 25.5% | Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Latvia · as of 2025-10-01 |
| Palau | 0% | Source: Government of Palau — Ministry of Finance, Bureau of Revenue and Taxation · as of 2026-07-19 |
| Difference | +25.5 pp | Latvia higher |
Between the two, Latvia's crypto tax rate (25.5%) tops Palau's (0%) by 25.5pp. The 88-country average is 13%: Latvia sits above it, Palau sits below it. Latvia's figure is dated 2025-10-01 and Palau's 2026-07-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-06-30 |
| Palau | 0% | Source: Palau National Code, Title 40 (Revenue and Taxation) — official text · as of 2026-07-18 |
| Difference | 0 pp | displayed rates match |
There's no gap here — Latvia and Palau both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Corporate Tax.