What will change in Latvia in 2026? / Article

Latvia is implementing a series of changes set to take effect in 2026, impacting areas from minimum wage and family support to taxes and public services. The adjustments, summarized by LSM.lv, include increased costs for certain goods and services alongside increased financial assistance for families.

Tax Changes

• Several natural resource tax rates will be increased for materials like sand, gravel, and soil. From 2027, the tax on peat is planned to increase fivefold.
• Rates for several gambling taxes will also be increased.
• Excise duties will rise on tobacco products, spirits, beer, wine, natural gas used for heating, and gasoline.
• From July 1, as part of a one-year pilot project, VAT on bread, milk, poultry meat, and eggs will be reduced to 12%.
• Books not published in Latvian, European Union, or Organisation for Economic Co-operation and Development (OECD) member state or candidate state languages will be subject to the standard 21% VAT rate, ending a previous 5% reduction.

Minimum Wage Increase

The minimum wage will increase from €740 to €780 per month in 2026. The non-taxable minimum will also rise from €510 to €550 per month.

Postal Service Rate Hikes

The price of a standard letter will increase by 5 cents, or 2%, to €2.35 excluding VAT. Sending a registered domestic parcel weighing up to one kilogram will cost €7.01, up from €6.82. Insured domestic parcels up to one kilogram will increase from €6.87 to €8.39, with each additional kilogram costing €1.25.

Increased Fees for Passports and ID Cards

Beginning January 1, 2026, the state fee for issuing a passport within 10 working days will be €50, and within two working days, €75. A personal identification card or eID card will cost €30 for 10-day processing and €45 for two-day processing. All existing state fee reductions for issuing personal identification documents will remain in place.

Jūrmala Entry Fee Increase

The daily entry fee to Jūrmala will increase from €3 to €5 in 2026. Long-term passes will approximately double in price: weekly passes from €10 to €20, monthly passes from €31 to €60, and three-month passes from €55 to €100. Six-month passes will cost €180, up from €107, and one-year passes will be €270, up from €180.

Greater Support for Families with Children

The one-time childbirth allowance will increase to €600 from €421.17, starting January 1, 2026. The childcare allowance for children up to the age of one and a half will be €298 per month (previously €171) and will be reviewed every two years. The period of parental allowance payments to parents of premature babies will also be extended, and payments to working parents will continue at 75% of the standard rate. State-paid maintenance for children and benefits for adopted families are also set to rise.

Natural Gas Tariff Decrease

The average tariff for natural gas distribution systems will decrease by 4.4% from January 1, 2026. Households using natural gas for cooking will see an average increase of approximately €0.8 per month (excluding VAT), while those using it for heating will see a decrease of one euro per month (excluding VAT).

Electricity Bill Increases for Some

While the electricity distribution tariff will remain unchanged, bills will increase for frequently used private connections with a current strength of 16 to 25 amps and the “Basic” tariff plan. Households with a single-phase connection will see a monthly payment increase of 20 cents to €1.26 (excluding VAT), while those with a three-phase connection will see an increase from €1.92 to €3.50 (excluding VAT).

“Debt Follows the Apartment” Principle

Latvia will introduce the principle of “debt follows the apartment” on January 1, 2026. New apartment owners will be responsible for the apartment’s debts for utilities, building management expenses, reserve fund contributions, and legal land use rights, incurred within three years prior to the purchase. Older debts will remain the responsibility of the previous owner.

Public Transport Ticket Price Increases

Regional public transport ticket prices – buses and trains – will increase by an average of 7% starting January 15. The increase will be minimal for longer journeys, up to €0.20, while fares in the electrified zone system will increase by €0.30.

Reduced Financial Support for Ukrainian Refugees

From 2026, Ukrainian citizens will no longer receive employment start-up allowances amounting to one minimum monthly wage (€740 in 2025). They will also lose access to free public transport and will be subject to the same travel fees and discount conditions as Latvian citizens. Furthermore, Ukrainian citizens will no longer be exempt from patient co-payments for healthcare services, and the costs of registering their animals and complying with mandatory health requirements will no longer be covered. These changes reflect a reduction in the 2026 state budget allocation for Ukrainian refugees to €39.7 million, a decrease of almost €25 million from 2025.

Changes to Pupil Assessments

In the next academic year, 9th-grade students will take two centralised exams instead of three – in Latvian language and mathematics. The foreign language exam will be a monitoring test. For high school students, the natural sciences monitoring test will become a centralised exam, requiring students to take a centralised exam in chemistry, physics, or biology at the optimal level, or in natural sciences at the general level. Students who have completed monitoring work in these subjects in previous years will be exempt.