Dividend Calculator 2026
Calculate net dividends after taxes in Latvia
About Dividend Taxation
In Latvia, distributed profits are taxed at the corporate level. From 2026, companies can choose between the standard regime (20% CIT directly on gross dividend) or the new alternative regime (15% CIT + 6% PIT on the remainder = ~20% total). The alternative regime is available only for companies with exclusively natural person shareholders.
Frequently Asked Questions
How are dividends taxed in Latvia in 2026?
Latvia offers two regimes: standard (20% CIT on gross-up, effective 25%) or the new alternative regime (15% CIT + 6% PIT = 21% total). No additional PIT applies if CIT has been paid on the profits.
What is the alternative dividend tax regime in Latvia?
From January 2026, companies with only natural person shareholders can opt for 15% corporate tax + 6% personal income tax on dividends, totaling 21% instead of the standard 25% effective rate.
When should I choose the alternative regime in Latvia?
The alternative 15%+6% regime is beneficial for most individual shareholders as it results in 21% total tax vs 25% under the standard regime. However, the standard regime may be better if you plan to reinvest profits.
Are dividends from Latvian companies double-taxed?
No, Latvia avoids double taxation. Once CIT is paid on distributed profits, individuals generally pay 0% additional PIT. The alternative regime applies both taxes but at lower combined rates.