According to Latvian legislation if a person has a permanent place of residence in Latvia, or he or she lives in Latvia for 183 days and longer in a 1 year period, or he or she is a citizen of Latvia and is employed abroad by the government of Latvia, he or she is complied for income tax payment. The non-residents of Latvia pay income tax for the income sourced in Latvia, i.e. employment, amounts earned from independent professional services, interest (with exceptions those from Latvia, EU/EEA) and dividends income, income from charges for intellectual property and others listed in the Law on Personal Income Tax.
Personal income tax 25%
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.