Is MUN (25% Micro-Enterprise Tax) or General Self-Employed better in Latvia in 2026?

Below 40,000 €/yr with low business expenses and zero dependents, MUN caps total tax and social outflows at a flat 25% without quarterly VSAOI complexity. With documented expenses (15%–30%), dependent children (3,000 €/yr allowance each), or turnover above 40,000 €, General Pašnodarbinātais yields higher net take-home pay.

How do VSAOI social contributions work for Latvian self-employed professionals in 2026?

Under General Pašnodarbinātais in 2026, if monthly profit is at least 780 € (minimum wage), you pay 31.07% VSAOI on at least 780 €/mo (242.35 €/mo) plus 10% state pension insurance on the surplus above 780 €/mo up to the 105,300 €/yr cap. Below 780 €/mo profit, you pay 10% pension only.

What is Latvia’s VAT (PVN) threshold in 2026 and does VAT affect MUN?

Latvia’s domestic PVN registration threshold is 50,000 € per calendar year (standard rate 21%). Registering as a PVN payer disqualifies a taxpayer from the 25% MUN regime, requiring General Pašnodarbinātais or a corporate SIA.

Annual Revenue (€)

Latvia — MUN & Pašnodarbinātais Self-Employed Tax Calculator 2026

Compute 2026 Latvian self-employed net income under Micro-Enterprise Tax (MUN 25% up to 40,000 €/yr) and General Self-Employed (Pašnodarbinātais), including VSAA social contributions, progressive IIN, and 3,000 €/yr dependent allowances.

2026 Statutory Benchmark Table & Official FAQ — Latvia — MUN & Pašnodarbinātais Self-Employed Tax Calculator 2026

Latvia — MUN & Pašnodarbinātais Self-Employed Tax Calculator 2026

Micro-Enterprise Tax — MUN (≤40,000 €/yr): Flat 25% turnover tax (80% allocated to VSAOI social insurance + 20% to IIN income tax) with zero expense bookkeeping; available only to non-VAT-registered sole proprietors.
General Pašnodarbinātais (Uncapped): When monthly profit reaches the 2026 780 € minimum wage, pay 31.07% VSAOI on 780 €/mo (242.35 €/mo) plus 10% pension contribution on profit above 780 €/mo up to 105,300 €/yr (or 10% pension only when monthly profit < 780 €).
2026 IIN, Family & VAT Rules: 25.5% IIN up to 105,300 €/yr (33% above) after VSAOI, 6,600 €/yr (550 €/mo) fixed non-taxable minimum, and 3,000 €/yr (250 €/mo) per dependent child or qualifying dependent spouse; domestic 21% PVN exemption up to 50,000 €/yr.

Latvia — MUN & Pašnodarbinātais Self-Employed Tax Calculator 2026
Gross Revenue (Yearly)	Net (Yearly)	Net (Monthly)	Income Tax	Social Contributions	Effective Burden
30,000.00 €	22,500.00 €	1,875.00 €/mo	1,500.00 €	6,000.00 €	25.0%
60,000.00 €	40,443.71 €	3,370.31 €/mo	11,584.09 €	7,972.20 €	32.6%
85,000.00 €	57,206.21 €	4,767.18 €/mo	17,321.59 €	10,472.20 €	32.7%
100,000.00 €	67,263.71 €	5,605.31 €/mo	20,764.09 €	11,972.20 €	32.7%
120,000.00 €	81,768.86 €	6,814.07 €/mo	25,728.94 €	12,502.20 €	31.9%

Is MUN (25% Micro-Enterprise Tax) or General Self-Employed better in Latvia in 2026?: Below 40,000 €/yr with low business expenses and zero dependents, MUN caps total tax and social outflows at a flat 25% without quarterly VSAOI complexity. With documented expenses (15%–30%), dependent children (3,000 €/yr allowance each), or turnover above 40,000 €, General Pašnodarbinātais yields higher net take-home pay.
How do VSAOI social contributions work for Latvian self-employed professionals in 2026?: Under General Pašnodarbinātais in 2026, if monthly profit is at least 780 € (minimum wage), you pay 31.07% VSAOI on at least 780 €/mo (242.35 €/mo) plus 10% state pension insurance on the surplus above 780 €/mo up to the 105,300 €/yr cap. Below 780 €/mo profit, you pay 10% pension only.
What is Latvia’s VAT (PVN) threshold in 2026 and does VAT affect MUN?: Latvia’s domestic PVN registration threshold is 50,000 € per calendar year (standard rate 21%). Registering as a PVN payer disqualifies a taxpayer from the 25% MUN regime, requiring General Pašnodarbinātais or a corporate SIA.

Official 2026 Statutory Sources & Verification

Verified against official 2026 statutory tax & social contribution rules (Last verified: Nov 2026).

VID — Valsts ieņēmumu dienests (Pašnodarbinātie & MUN) ↗ VSAA — Valsts sociālās apdrošināšanas aģentūra ↗