Car Tax in Latvia 2026 for EVs and Hybrids: What You Pay and What Is Exempt
Before you buy an EV or a hybrid, it pays to understand what it costs every year, not just on the showroom sticker. In Latvia the good news is simple: electric cars are among the lowest-taxed vehicles in the country — but hybrids are not automatically exempt. The difference comes down to CO2 emissions.
See cars in stock — china-cars.online →→In stock in the EU · 2–7 day delivery · 3-year / 200,000 km EU warranty · CATL batteriesWhich taxes apply to a car in Latvia at all?
Several separate charges apply to a passenger car in Latvia. Don't mix them up:
- Vehicle operation tax (TEN) — the main annual tax for individuals. Paid before the roadworthiness test or registration actions. The amount depends on CO2 emissions (for newer cars) or engine/weight (for older ones).
- Company light-vehicle tax (UVTN) — a monthly tax on cars owned or held by a company and also used privately. It does not apply to privately owned cars.
- Registration and CSDD fees — one-off payments when registering a car (registration, plates, registration certificate; on first registration in Latvia also the €110 natural resources tax). For a pure EV that gets EV number plates, CSDD first registration is free, but the natural resources tax has no EV discount. Latvia has had no registration tax for any car since 2017.
Key point: for an individual, TEN matters most. For a company using a car privately too, UVTN is added on top. An EV is advantageous in both cases.
In this article the amounts are indicative for 2026 and based on publicly available VID/CSDD information. Compute the exact result for a specific car with the calculator.
How are EVs taxed in 2026 vs petrol/diesel?
This is the EV's main advantage. TEN for cars first registered after 2020 is calculated from WLTP CO2 emissions — and the lowest band starts at zero:
| Car type | CO2 (WLTP) | TEN (per year, indicative) |
|---|---|---|
| Electric vehicle | 0 g/km | €0 — exempt |
| Plug-in hybrid (low CO2) | usually ~20–50 g/km | €0 if ≤50 g/km |
| Plug-in hybrid (higher CO2) | >50 g/km | by band, from €12 (51–95 g/km) |
| Petrol/diesel (average) | ~120–160 g/km | €72–126 per year |
| High-power / high-emission | >300 g/km | €471–834 (+€330 if >3500 cc) |
- A pure EV → TEN €0. This comes from a separate exemption in the TEN law (art. 6(1)15), not from the CO2 band; the already-published version of the law from 2027 keeps it unchanged.
- Petrol/diesel cars pay according to emissions — the bigger the engine and emissions, the higher the band, up to €834 per year for the top category (401 g/km and above), plus a €330 surcharge for engines over 3,500 cc.
- In 2026 the TEN rates are not increased — they were last raised on 1 January 2025, and the burden stays at that level (TEN law art. 4, likumi.lv).
Important for older cars: if a car was first registered in 2009–2020, the NEDC CO2 method applies; if 2005–2008, the calculation is based on engine capacity, power and gross weight, and for even older cars (or where that data is missing) on gross weight only. A Latvian-registered EV pays €0 TEN whatever its registration year, because a separate exemption covers it.
How are plug-in hybrids and EREVs (range-extenders) taxed?
This is the most common misconception. A hybrid is not automatically exempt. TEN is applied by actual CO2 emissions, not by whether the car is called a "hybrid".
- A plug-in hybrid (PHEV) with a low declared CO2 (usually ~20–50 g/km WLTP) often lands in the lowest TEN band — in many cases €0 if emissions are ≤50 g/km. However, real emissions depend on the model.
- A regular (non-plug-in) hybrid usually emits more (90–130 g/km) and is taxed like any petrol car in the relevant band.
- An EREV (range-extender, e.g. AITO M5, Li Auto L6) — technically it drives like an EV but has a petrol generator. For tax, the decisive figure is the homologated CO2 value: an EREV with a low declared CO2 can land in a low band, but it's not a guaranteed "€0" like a pure EV. Before buying, check the model's CO2 data and run the calculator.
Definition — EREV: Extended-Range Electric Vehicle. The wheels are driven by an electric motor, but a petrol generator recharges the battery and extends range. Total range can reach ~1,000+ km (e.g. AITO M5 ~1,000 km, Li Auto L6 up to ~1,390 km CLTC), but for tax the declared CO2 value matters, not the total range.
Practical takeaway: if you want a guaranteed €0 TEN and the lowest UVTN, a pure EV is the safest choice. PHEVs and EREVs can be advantageous, but their tax depends on the specific model's CO2 — always check.
How is the amount calculated (CO2, engine, weight)?
The TEN calculation logic depends on the car's date of first registration:
| First registration | Calculation basis | EV result |
|---|---|---|
| After 31.12.2020 | WLTP CO2 emissions (g/km) | €0 — exempt |
| 2009–2020 | NEDC CO2 emissions (g/km) | €0 — exempt |
| Before 2009 | 2005–2008: engine capacity + power + gross weight; older: gross weight only | €0 — exempt |
Indicative "anchor" figures by band (petrol/diesel, TEN law art. 4, 2026; for 2005–2008 cars the first three parts are added together):
- Engine capacity 1501–2000 cc → indicatively ~€27
- Engine power 56–92 kW → indicatively ~€27
- Gross weight 1501–1800 kg → indicatively ~€36
- Top emission band (WLTP, 401 g/km and above) → €834, plus a €330 surcharge if the engine is >3,500 cc
Why is an EV always €0? Not because of the CO2 band: the TEN law exempts a pure EV separately (art. 6(1)15), whatever its registration year or calculation method. The exemption applies to cars registered in Latvia. If someone whose declared residence is in Latvia drives a foreign-registered EV, TEN is payable; on the wording of the law it is charged by gross weight (roughly €42–303 a year, pro rata per month) — check the exact amount with CSDD.
All figures are indicative. Compute the exact amount for your VIN/model with the tax calculator, which uses current rates.
EV vs ICE: a rough annual tax comparison?
Let's add up the two main taxes — TEN (for an individual) and UVTN (for a company car). Figures indicative for 2026:
| Electric vehicle | Petrol/diesel (average) | |
|---|---|---|
| TEN (per year) | €0 | typically €72–126 (depending on CO2 band) |
| UVTN (per month, company car) | €15 (€17 from 2027) | €33–100+ (by power: 110 kW → €33, 200 kW → €100) |
| UVTN (per year, company car) | €180 | €396–1,200+ |
| CSDD first registration | €0 with EV number plates | €41.88 |
- For an individual the main difference is TEN €0 for an EV versus typically €72–126 per year for a newer petrol car.
- For a company the difference is stark: EV €15/mo vs €33–100+/mo — that's a difference of several hundred euros per year in the EV's favour (CSDD/VID rates 2026).
- In 2026 neither TEN nor UVTN rates are raised. From 1 January 2027 UVTN rises for everyone (EV €15 → €17, PHEV €25 → €30, up to 110 kW €33 → €36) — this is already law, and the EV's advantage holds.
See cars in stock — china-cars.online →→In stock in the EU · 2–7 day delivery · 3-year / 200,000 km EU warranty · CATL batteriesBottom line: the annual tax burden on a company EV can be ~2.5–7 times lower than a comparable petrol car. For an individual, the main gain is TEN €0 plus free CSDD registration with EV number plates.
How do exemptions affect total cost of ownership (TCO)?
Tax is just one part of the total cost of ownership (TCO). An EV's advantage adds up from several sources:
- Taxes. TEN €0 + the lowest UVTN + free CSDD registration = indicatively hundreds of euros a year saved for a company car.
- "Fuel". Home charging ~€4/100 km versus ~€12/100 km on petrol — see the EV guide. At 15,000 km/year that's ~€1,100–1,200 saved.
- Servicing. No oil changes, fewer wearing parts — indicatively €200–400/year less.
- Up-front price. A lot is decided here. European premium EVs cost €52–64k; Chinese models with the same or better technology cost far less — e.g. Deepal S07 €35,033 vs BMW iX3 €52,000, or Xiaomi SU7 Max €39,100 vs BMW i5 €64,000. The purchase price can also be cut by the state EKII-10 grant — €4,000 for a new EV or plug-in hybrid and €3,000 for a used EV, but only for a specific car that a participating dealer has listed on ekii.lv; the conditions are in our guide to the EKII grant.
Why it matters: if you compare only the sticker price, an ICE car can look cheaper. But once you add TEN €0, lower UVTN, cheaper charging and servicing, an EV's total cost of ownership over several years is often lower — and the more you drive, the bigger the gap.
If you're looking for a specific affordable EV, start with the Chinese EV overview. These models offer comparable or better technology at a substantially lower price.
Why Chinese EVs cost less (and how it ties into tax)?
The lower price comes not from quality but from manufacturing economics: huge scale, deep vertical integration (in-house CATL batteries, chips, software), gadget-style development cycles and fierce domestic competition with factory-direct sales. Because they are pure EVs, they automatically also get TEN €0 and the lowest UVTN — a lower price and a lower tax at the same time. china-cars.online is our trusted partner in Latvia: EU warranty 3 years / 100,000 km plus CATL battery coverage, cars in stock with 2–7 day delivery.
Comparison: available EVs and their tax profile
Prices shown incl. VAT (for a fair comparison with the European showroom price); china-cars.online prices are listed incl. VAT (21%). For all pure EVs — TEN €0 and UVTN €15/mo (€17 from 2027).
| Model | Technology | Price (~incl. VAT) | TEN | UVTN/mo | Direct EU rival |
|---|---|---|---|---|---|
| Deepal S07 | CATL, ~475 km WLTP | €35,033 | €0 | €15 | BMW iX3 ~€52k |
| Xiaomi SU7 Max | 101 kWh CATL, 800V, 673 hp | €39,100 | €0 | €15 | BMW i5 ~€64k |
| AVATR 06 | 800V, Huawei ADS | €45,330 | €0 | €15 | BMW i4 / Audi A6 e-tron |
| AITO M5 | EREV, ~1,000 km total | €50,226 | by CO2* | €25* | premium SUV |
| Li Auto L6 | EREV, up to 1,390 km CLTC | €50,226 | by CO2* | €25* | BMW X3 / Audi Q5 e-tron |
* EREV (M5, L6) TEN depends on the homologated CO2 value — check the specific model with the calculator. For UVTN, an EREV that can be charged from the grid usually counts as a plug-in hybrid — €25/mo (€30 from 2027). For pure EVs (Deepal, SU7, AVATR) — €0 TEN and €15/mo UVTN.
Frequently asked questions
Is an EV exempt from tax in Latvia in 2026?
From the annual tax, yes: a pure EV registered in Latvia is exempt from the vehicle operation tax (TEN) under a separate provision of the law (TEN law art. 6(1)15), so its TEN is €0. A company car still pays UVTN — €15/month (€17 from 2027). Check the exact result with the calculator.
Is a plug-in hybrid exempt from TEN?
Not automatically. A PHEV is taxed on its actual CO2 emissions. A PHEV at ≤50 g/km (WLTP) pays €0, at 51–95 g/km €12 a year, and with higher CO2 more, by band. Check the specific car's CO2 data.
How much is the operation tax for a petrol car?
It depends on CO2 emissions (for newer cars) or engine/weight (for older ones). Cars registered after 2020: from €12 (51–95 g/km) to €834 (401 g/km and above), typically €72–126, plus €330 if the engine is >3,500 cc. For 2005–2008 cars the parts are added up, e.g. 1501–2000 cc €27 + 56–92 kW €27 + weight 1501–1800 kg €36. These are the 2026 rates — compute the exact amount with the calculator.
How is TEN calculated — by CO2 or by engine?
It depends on the date of first registration: after 2020 — WLTP CO2; 2009–2020 — NEDC CO2; 2005–2008 — engine capacity + power + gross weight; older cars — gross weight only. A Latvian-registered EV is exempt from TEN whatever the method.
What is UVTN and does it apply to me?
The company light-vehicle tax is a monthly tax on cars owned by a company and also used privately. It does not apply to privately owned cars. In 2026 the EV rate is €15/mo, a plug-in hybrid €25/mo, petrol/diesel €33/mo up to 110 kW and more per kW above that (cars first registered before 2009 — €60/mo). From 2027: €17, €30, €36 and €66.
Are car taxes going up in 2026?
TEN and UVTN rates are not increased in 2026 — TEN was last raised on 1 January 2025. From 1 January 2027 UVTN rises (already law): EV €15 → €17, plug-in hybrid €25 → €30, cars up to 110 kW €33 → €36 a month. New exemptions took effect for socially protected groups and car dealers. Always verify the current rules with VID/CSDD.
Does an EV pay less for registration?
Yes. When a pure EV is first registered in Latvia with EV number plates, CSDD registration, the registration certificate and the plates are free (for other cars that usually comes to €41.88). But the €110 natural resources tax charged at first permanent registration in Latvia has no EV discount (it is not charged when the car is registered by a dealer that takes part in the end-of-life vehicle scheme). Latvia has had no registration tax for any car since 2017, and plug-in hybrids do not get EV number plates. Check the current CSDD price list.
Is an EREV (range-extender) taxed like an EV?
Not always. EREV tax (e.g. AITO M5, Li Auto L6) is determined by the homologated CO2 value, not total range. If the declared CO2 is low, the tax can be low, but it's not a guaranteed "€0" like a pure EV. Check the specific model's data with the calculator.
How much can you save on taxes overall with an EV?
For an individual — TEN €0 versus typically €72–126 per year for a newer petrol car. For a company — UVTN €180/year versus €396–1,200+/year, i.e. a difference of several hundred euros a year, plus free CSDD registration with EV number plates. Adding cheaper charging and servicing, the total TCO saving is even larger.
Where can I find an affordable EV in Latvia?
Start with the Chinese EV overview — models with 800V and CATL batteries, e.g. €39,100 for the Xiaomi SU7 Max vs €64,000 for a BMW i5, with an EU warranty and in stock. For a deeper dive — the EV guide.
All tax, price and specification figures are indicative for 2026 and reflect publicly available VID/CSDD information — always compute the exact amount for a specific car with the tax calculator and verify current legislation. For a fuller 2026 tax explainer, see the car tax 2026 guide. autopase.lv is a partner of the china-cars.online project.