Capital gains
In Latvian: Kapitāla pieaugums
A capital gain (kapitāla pieaugums) is the income an individual makes by selling a capital asset, such as shares, company shares, real estate or crypto-assets, for more than it cost. In Latvia it is taxed at 25.5% personal income tax.
The gain is the difference between the sale price and the acquisition value. The rate has been 25.5% since 1 January 2025; it was 20% before, and 20% still applies in 2025 to 2027 to deals started but not completed by 31 December 2024 for which a return was filed.
If income from deals in capital assets exceeds EUR 1,000 in a quarter, a capital income return is filed quarterly by the 15th of the following month; otherwise one return for the year is filed by 15 January of the next year. The law also provides exemptions, for example for some sales of real estate.
Example
In 2026 Kārlis sells shares for EUR 7,000 that he bought two years earlier for EUR 5,000. His capital gain is EUR 2,000 and IIN is 2,000 × 25.5% = EUR 510.
Legal basis
- Law on Personal Income Tax, Section 11.9 likumi.lv
- Law on Personal Income Tax, Section 15 likumi.lv
- Law on Personal Income Tax, Transitional Provision 196 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.