Tax System

In Latvia the taxation procedures are regulated by “Law on Taxes and Duties” adopted onFebruary 2, 1995. Generally, this law is everywhere applicable, unless the specific laws on taxes such as “The Law on Value Added Tax”, “The Law on Corporate Income Tax” or law conventions specify other conditions. The taxes are divided into direct and indirect.

The direct taxes are:
- Personal income tax 25% more
- Mandatory social security contributions 35, 09% more
- Enterprise income tax 15% more
- Microenterprise tax 9% from turnover more
- Real estate tax 1, 5 % from the cadastral value of property more

The indirect taxes are:
- The value added tax 22% more
- Exercise tax
- Electricity tax
- Tax on cars and motorcycles
- Vehicle operating tax
- Company car tax
- Customs duty

Other taxes:
- Natural resources tax
- Gambling and lottery tax

More information on taxes (both direct and indirect) should be found on the following websites

http://www.fm.gov.lv/en/s/taxes/
https://www.vid.gov.lv/lv/nodokli
http://www.liaa.gov.lv/en/invest-latvia/investor-business-guide/taxation

Overview of Latvian taxes

For the foreigners to avoid the double taxation the amount of Latvian Income Tax can be reduced to that paid in the corresponding foreign country. Note! The according tax payment should be certified by a foreign tax-collection institution! Learn more about tax convention here and about the procedures of applying for tax relief here. Download the list of the countries with which Latvia has signed the tax convention here.

Tax System

EU Countries

Non-EU Countries