EUROCOSTSCOUNTRY COMPARISON · UPDATED 2026-07-15
Latvia vs Malta: taxes, salary and cost of living
Latvia and Malta present two different cost profiles: the first question is whether the salary gap compensates for housing and daily expenses.
Latvia vs Malta at a glance
| Indicator | Latvia | Malta |
|---|---|---|
| Standard VAT | 21% | 18% |
| Income tax | 25.5-33% | 0-35% |
| Social contributions | 34.09% | 20% |
| Tax burden | 42.3% | 29.8% |
| Average monthly salary | €1,600 | €2,250 |
| Studio rent | €460 | €1,037 |
| Monthly food estimate | €280 | €350 |
| Gasoline | 1.61 €/L | 1.34 €/L |
| Electricity | 0.21 €/kWh | 0.13 €/kWh |
Income comparison in context
Malta records the higher listed monthly salary. The gap is €650, approximately 28.9% relative to the lower figure. Within the numeric EuroCosts sample, Latvia ranks 21 of 27 for salary and Malta ranks 16 of 27. The nominal advantage should be tested against local housing before it is treated as additional purchasing power.
Rent, food and the monthly budget
Latvia has the lower listed studio rent by €577, a 55.6% difference relative to the higher rent. Latvia sits 8 of 37 and Malta 29 of 37 in the available low-to-high rent ranking. Latvia also has the lower food estimate, so the housing result is reinforced by groceries.
After subtracting only the listed rent and food estimates, the simplified remainder is €860 in Latvia and €863 in Malta. This leaves €3 more in Malta, before utilities, transport, healthcare, childcare or personal taxes not already reflected in salary.
Headline taxation: what differs
Malta has the lower listed tax burden by 12.5 percentage points. Standard VAT is 21% in Latvia versus 18% in Malta. Effective taxation depends on income level and household circumstances.
A practical transport check
Malta has the lower listed gasoline price by €0.27 per litre. For a driver buying 50 litres a month, that headline difference is about €13.5 monthly, before insurance, parking and road charges.
Who may prefer each country?
For Latvia and Malta, short stays are influenced heavily by rent and restaurant prices; permanent relocation adds payroll, healthcare and administrative costs. These figures work best as a shortlist, not a final decision model.
The most useful conclusion
Malta produces the stronger simplified monthly remainder in this dataset, while Latvia leads on listed rent. The trade-off is more informative than a blanket cheapest-country label.
Sources and data references
- PwC standard VAT rates
- PwC personal income tax rates
- PwC corporate income tax rates
- EuroCosts data scope and generation process
Explore Latvia comparisons · Explore Malta comparisons