Are electric cars viable in Latvia in 2026?

Is 2026 the right time to switch to electric mobility? Energy efficiency and sustainability are often no longer just a fad, but an economic necessity for many drivers and businesses.

As global trends and local legislation change, more and more people are taking stock of their daily commuting habits. The aim of this article is to analyse in detail how the use of electric cars can affect your personal or your company’s budget in the long term, taking into account all the factors involved.

Market data indicate a stabilisation after the initial “boom”, making the choice more rational and informed. Let us look at the state support mechanisms and infrastructure readiness as EVs in Latvia become more affordable and practical for everyday use.

With our 30 years of experience in the Latvian market, we provide data based on real fleet management. This information can help you make an informed decision that meets your mobility needs and financial goals.

Contents

• The popularity of electric cars in Latvia – is the growth continuing?
• Cost comparison: electric vs combustion
• Practical choice: Buy, lease or full-service leasing?
• FAQ – Frequently asked questions about electric cars
• Restrictions and alternatives
• Conclusion

The popularity of electric cars in Latvia – is the growth continuing?

Market data show that the number of electric cars on Latvian registers continues to grow steadily, reaching new peaks in 2026. The data point to growth trends and a change in buyer behaviour, where new EVs are increasingly being chosen for rational reasons rather than purely for environmental reasons.

Studies show that interest is no longer a Riga phenomenon, but a nationwide one, as people in the regions are beginning to appreciate the long-term financial benefits. This includes innovative models such as the Volkswagen ID.BUZZ, which demonstrate the evolution of technology and adaptability to different living situations.

State aid and tax incentives in 2026

State support for the purchase of electric cars is still available in 2026 and can significantly reduce the initial investment. The data indicate that ECDC support for electric cars includes specific conditions for both individuals and companies that can help to facilitate a smoother transition to greener transport. For individuals, this support often serves as a decisive factor in the decision, while for companies it can help to optimise fleet renewal costs.

In addition to the direct financial support, tax advantages such as preferential VAT rates and VAT deductibility often make this choice even more attractive. Results may vary on an individual basis.

Charging station network development: from Riga to the regions

Infrastructure readiness for long journeys has improved significantly, making it easier and safer to travel throughout the country. Today’s electric car charging station map shows that route planning has become much easier, with charging points available in almost every major settlement.

Fast charging stations and new EV charging points are increasingly being integrated at strategic points and on major motorways, which can help minimise charging times. These developments can help to allay drivers’ concerns about range margin and make electric mobility a reliable choice for everyday use.

Cost comparison: electric vs combustion

Although the initial price may be higher, the total cost of ownership (TCO) is often lower in favour of electricity if the calculations are done correctly. Key factors influencing this are the cost of charging an electric car compared to conventional fuel, as well as significantly reduced day-to-day expenditure items. Studies have shown that in the long term this difference can add up to significant savings, especially for drivers who travel long distances on a daily basis.

Purchase price vs. long-term cost of use

The initial price of an electric car and its depreciation must be carefully assessed in the long term, taking into account all operational aspects. Data shows that the maintenance costs of electric cars are often lower due to fewer moving parts in the system, no engine oil changes and slower brake pad wear due to regenerative braking.

Additional financial benefits can be provided by free parking spaces for electric cars in city centres, which can save daily commuters considerable money. In addition, the right car loan or lease can help optimise monthly cash flow, making the switch to EVs more affordable.

TCO Comparison (5-year period)

Benefits for the company: deduction of VAT and UVTN

For legal entities, the financial benefits can be particularly pronounced due to favourable national tax policies for zero-emission vehicles. Studies show that car leasing is often more profitable for companies in 2026 in the electric form, as it can offer the possibility to significantly reduce the tax burden.

Businesses can benefit from a favourable VAT deduction scheme and a full exemption from the company car tax (CCVT), which can add up to savings of thousands of euros per unit per year.

Image from pexels.com

Practical choice: Buy, lease or full-service leasing?

The criteria for choosing between purchase and lease usually depend on the planned mileage, the specifics of the business and daily usage habits. When looking for the best car leasing deal, the data shows that the price of the monthly payment is not the only factor – value for money, ease of administration and risk management are just as important. For many customers full-service leasing may be the right solution as it can help to consolidate all the costs of maintaining a car into one predictable bill.

Avis Flex: Flexible electric car rental without long-term commitment

Synergies between full-service leasing and short-term mobility solutions such as car rental in Riga can provide maximum adaptability to changing circumstances. For those companies or individuals who are still hesitant about a full transition, a car rental for a month or a convenient long-term car rental through the Avis Flex programme can serve as an excellent and risk-free test phase. This approach can help to assess charging habits and the suitability of the vehicle for everyday needs in real life conditions before making a long-term commitment.

FAQ – Frequently asked questions about electric cars

Are electric cars profitable in Latvia?

Yes, studies show that such vehicles can be profitable in Latvia if the annual mileage exceeds 15 000 kilometres and public support is used. Lower energy costs per kilometre and tax incentives can help offset the higher purchase price over a 3-5 year period. However, the cost-effectiveness depends on individual charging habits and the financing model chosen.

What is the state support for electric cars in 2026?

Data show that in 2026, public support for new zero-emission vehicles through the ECII programme could reach up to €4,500, and €2,250 for second-hand vehicles. In addition, support of €1000 may be available for the write-off of an old vehicle. For legal entities, support is often focused on greening fleets, combined with favourable tax treatment.

Is it profitable for companies to lease electric cars?

For companies, renting or full-service leasing of such vehicles can often be particularly advantageous, as it can help to forecast cash flow and avoid the risk of technological obsolescence. With a full-service service, a company can deduct VAT on rental payments and charging, and can be exempt from company car tax.

Restrictions and alternatives

When looking at the 2026 market data, it is important to take into account that fluctuations in electricity prices on the power exchange may affect the projected financial savings. Current studies indicate a significant improvement in battery longevity, but in extreme weather conditions, such as harsh Latvian winters, the actual range per charge can decrease by 20-30%, which is an important factor to consider when planning onward routes and daily logistics.

If an all-electric vehicle doesn’t seem right for a particular life situation or company, a hybrid car (PHEV) can still be a strong and reliable alternative, offering more flexibility for longer journeys without the need to plan charging breaks.

Similarly, for businesses with minimal or seasonal mileage, short-term car rental may be a more efficient solution, only when the vehicle is actually needed, thus avoiding unnecessary maintenance costs.

Conclusion

The electric car is often no longer a technology of the future, but a standard of today that can contribute to efficient and sustainable mobility in Latvia. The data points to key benefits: potential financial savings through ECII programmes, significant tax incentives and the peace of mind provided by MyAvis full-service leasing, which can help alleviate the daily hassle of maintaining a fleet.

However, you should always remember that every situation is individual, so it is important to make accurate calculations and assess your actual driving habits before making a decision.

MyAvis experts are always ready to help you choose the right solution for a greener fleet, providing professional support every step of the way. Whether you are considering a long-term lease for a single car or a full-service lease for your entire company fleet, our experienced team can tailor a personalised offer that fits your exact needs and budget.