LV · EuropePA · Americas
Latvia vs Panama: tax rates compared
Latvia's income tax rate is 8pp higher than Panama's (33% vs 25%). The 200-country average is 28%: Latvia sits above it, Panama sits below it. Latvia's figure is dated 2025-12-30 and Panama's 2026-01-18, 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 | PA | Difference |
|---|---|---|---|
| Income Tax | 33% | 25% | LV +8 pp |
| Corporate Tax | 20% | 25% | PA +5 pp |
| VAT | 21% | 7% | LV +14 pp |
| Capital Gains Tax | 25.5% | 10% | LV +15.5 pplargest gap |
| 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 |
| Panama | 25% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Taxes on personal income) · as of 2026-01-18 |
| Difference | +8 pp | Latvia higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Panama | 25% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −5 pp | Panama higher |
Panama's corporate tax rate is 5pp higher than Latvia's (25% vs 20%). The 201-country average is 22.6%: Latvia sits below it, Panama sits above it.
VAT
| Country | Rate | Source |
|---|---|---|
| Latvia | 21% | Source: PWC Worldwide Tax Summaries — Latvia (Corporate, Other taxes) · as of 2026-06-30 |
| Panama | 7% | Source: PWC Worldwide Tax Summaries — Panama (Corporate, Other taxes) · as of 2026-01-18 |
| Difference | +14 pp | Latvia higher |
Latvia's VAT rate is 14pp higher than Panama's (21% vs 7%). The 181-country average is 15%: Latvia sits above it, Panama sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 25.5% | Source: PWC Worldwide Tax Summaries — Latvia (Individual, Income determination) · as of 2026-06-30 |
| Panama | 10% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | +15.5 pp | Latvia higher |
Latvia's capital gains tax rate is 15.5pp higher than Panama's (25.5% vs 10%). The 175-country average is 10.3%: Latvia sits above it, Panama sits below it.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| Latvia | 0% | Source: PWC Worldwide Tax Summaries — Net wealth/worth tax rates (quick chart) · as of 2026-06-30 |
| Panama | 0% | Source: PWC Worldwide Tax Summaries — Panama (Individual, Other taxes) · as of 2026-01-18 |
| Difference | 0 pp | displayed rates match |
Latvia's wealth tax rate is identical to Panama's — both sit at 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.