Compare taxes and see how much you save moving from Latvia to Lithuania
Latvia and Lithuania are Baltic neighbors with similar progressive tax systems but different approaches. Latvia uses a two-tier system: 25.5% up to €78,000, then 33% above. Lithuania reformed in 2026 to three tiers: 20% to €81K, 25% to €116K, 32% above. For most employees under €80K, Lithuania wins with its lower 20% base rate. At €50,000: Latvia charges ~€16,000 (32%), Lithuania charges ~€14,500 (29%). Lithuania saves €1,500/year. Latvia has generous pensioner allowances (€6,600/year exempt) making it attractive for retirees. Both countries have similar costs of living, with Riga slightly larger than Vilnius. Choose Latvia if: you're a retiree (better allowances), prefer Riga's Art Nouveau architecture, or work in logistics/shipping. Choose Lithuania if: you earn under €80K (lower rates), work in fintech/tech (stronger ecosystem), or prefer Vilnius lifestyle.
Progressive
25.5% to €78K, 33% above + generous pensioner allowances
Progressive
20/25/32% progressive (2026 reform)
At €50,000 income:
That is €125/month back in your pocket!
| Income | LV Tax | LT Tax | Savings | 10-Year |
|---|---|---|---|---|
| €30,000 | €9,700 (32.3%) | €7,200 (24%) | Lithuania saves €2,500 | €25,000 |
| €50,000 | €16,000 (32%) | €14,500 (29%) | Lithuania saves €1,500 | €15,000 |
| €100,000 | €35,200 (35.2%) | €33,500 (33.5%) | Lithuania saves €1,700 | €17,000 |
| €150,000 | €54,700 (36.5%) | €53,000 (35.3%) | Lithuania saves €1,700 | €17,000 |
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Hold EUR and send money at real exchange rates. Perfect for Baltic workers sending money home or receiving international payments.
Open Wise Account →Global payroll and compliance for Baltic employment. Handle taxes correctly in either country.
Hire in Latvia or Lithuania →Latvia: ~€16,000 total (25.5% rate plus ~11% social contributions). Lithuania: ~€14,500 total (20% rate plus social). Lithuania saves €1,500/year at this income level. The gap is consistent across most income levels due to Lithuania's lower base rate.
Latvia offers more generous pensioner tax allowances with €6,600/year exempt from tax. Latvia also has slightly lower healthcare costs and a well-developed medical tourism sector. Lithuania has no equivalent pensioner tax breaks. For pure tax savings on pension income, Latvia wins.
Very similar. Riga: €1,100-1,700/month, €450-750 rent. Vilnius: €1,100-1,600/month, €450-700 rent. Both are among Europe's most affordable capitals. Riga has slightly higher food costs, Vilnius slightly higher entertainment costs. Essentially equal.
Lithuania for tech/fintech—Vilnius is the clear Baltic tech leader with Revolut, Vinted, and growing startup scene. Latvia for logistics, shipping, and manufacturing—Riga's port is the largest in the Baltics. Both have low unemployment (~6%).
Both Latvian and Lithuanian are challenging—they're the only surviving Baltic languages. English proficiency is high in both countries (85%+ in major cities). Lithuanian is slightly more commonly studied, but practically, you can live in either country using English for professional work.