Free tools · 2026 rates
Tax regime comparison: MUN, self-employed or a company?
Enter your planned income and expenses — the calculator shows all three regimes side by side with real figures and highlights the best one for your exact numbers.
The comparison shows how much is left after taxes AND expenses with the same numbers in all three regimes. The annual view assumes even income across the months — the self-employed social contributions are calculated month by month.
Best regime
Company (SIA) + dividends
You keep 1600,00 € per month
Profit before taxes
2000,00 €
Income − expenses per month
Micro-enterprise tax
1375,00 €
left per month after taxes and expenses
- MUN 25 % of turnover625,00 €
- Expenses (do not reduce the tax)500,00 €
- Total taxes625,00 €
- Of income25 %
The simplest bookkeeping: a single tax covers social contributions and income tax. Cannot be VAT-registered.
Self-employed (income tax)
1218,56 €
left per month after taxes and expenses
- Social contributions (31,07 % + 10 %)364,35 €
- Income tax estimate417,09 €
- Total taxes781,44 €
- Of income31,26 %
Expenses reduce the tax; social contributions provide pension and sick pay. Income tax is finalised in the annual declaration.
Company (SIA) + dividends
1600,00 €
left per month after taxes and expenses
- Corporate income tax (20 % when distributing profit)400,00 €
- Income tax on dividends0,00 €
- Total taxes400,00 €
- Of income16 %
Simplified: all profit as dividends, without a board member's salary or social guarantees. Requires company (SIA) bookkeeping and an annual report.
An estimate for making a decision, not tax advice: it does not account for the non-taxable minimum, reliefs, a board member's salary in a company (SIA), or the alternative corporate income tax regime available from 2026 (15 % + 6 % personal income tax withheld from dividends). Each regime also has its own registration conditions.
Frequently asked questions
Which tax regime is the most advantageous?
It depends on the share and size of your expenses: with small expenses and turnover up to ~€1,500 a month, MUN is usually the simplest; with larger expenses the self-employed regime becomes better because expenses reduce the tax; with steady, larger profit it is worth calculating a company (SIA) with dividends.
When is MUN better than the self-employed status?
When there are almost no expenses and turnover is small — MUN's 25% of turnover is then less than the self-employed social contributions on the minimum wage plus income tax. As soon as expenses grow, MUN becomes more expensive because they cannot be deducted.
This calculator is for information only and does not replace tax advice — the final figure is set by the State Revenue Service (VID) in its assessment. The rates are computed by the same engine used in Vadi accounting, and each value is verified against official sources (VID, likumi.lv). If you spot an inaccuracy, write to us.
Vadi does these taxes for you
Salaries, VSAOI reports, MUN and VAT declarations in EDS format, a tax calendar with exact amounts — automatically, without spreadsheets and calculators.