The new year will bring changes to tax legislation which will affect both companies and individuals. Below is an overview of the main tax changes that will enter into force in 2026, as well as changes already adopted and entered into force during 2025.
Contents
In the beginning of the year, several tax changes were introduced in Estonia, Latvia and Lithuania.
Our tax specialists have gathered together the info about tax changes to guide you through the ever-changing tax landscape of the Baltic region. You can access the tax changes here.
If you have questions about taxes, we are happy to help you. Please contact our tax consultants!
In Estonia:
Urzula Välb
Senior Tax Manager
P +372 626 0500
E Urzula.Valb@ee.gt.com
In Latvia:
Mārtiņš Lubgans
Head of Tax
P +371 672 873 44
E Martins.Lubgans@lv.gt.com
In Lithuania:
Vykintas Valiulis
Partner, Head of Tax
P +370 620 74 145
E Vykintas.Valiulis@lt.gt.com
Contact us!
If you have similar challenges and questions, please contact our specialists.
Related Insights
View more
Tax
Which tax changes will enter into force in 2026?
|
9 min read
|
08 Dec 2025
Tax
Calculating the Basic Exemption from 2026
The “tax hump” that has been in place for eight years will be abolished, and starting from 1 January 2026 a uniform basic tax exemption of €700 per month (€8,400 per year) will apply regardless of a person’s income level. For those of retirement age, a slightly higher exemption will continue to apply—€9,312 per year.
|
3 min read
|
02 Dec 2025
Tax
Repeal of the Defense Tax Act and Tax Rate Increases
The Defense Tax Act, adopted at the end of last year and widely debated due to the proposed taxation of corporate profits, has been repealed. Instead, permanently increased tax rates will now apply to value-added tax (VAT), income tax, and business income tax.
|
1 min read
|
15 Jul 2025