What changed in Latvia

Crypto exchanges start reporting your transactions to VID from the 2026 tax year

Crypto tax and legal status

Crypto is taxed at 25.5 percent, and crypto-to-crypto swaps ARE a taxable event, not a deferred non-event

Crypto tax and legal status

A foreign company can create a taxable presence in Latvia without registering anything

Permanent establishment risk

A standard SIA needs EUR 2,800 in share capital, the EUR 1 low-capital option carries personal liability for the shortfall

Moving your company

A Latvian company cannot escape Latvian tax by claiming foreign management, but the Netherlands can still claim it too

Moving your company

New from 2026: a 15 percent plus 6 percent alternative regime for companies owned only by individuals

Moving your company

Deemed distributions catch far more than dividends, this is where the deferred tax system bites unexpectedly

Moving your company

0 percent corporate tax on retained profit, 20 percent (effective 25 percent) only on distribution

Moving your company

Latvia's ATAD exit tax bites when a company moves assets abroad free of charge

Leaving home: exit tax and ties

No net wealth tax, and gifts from close relatives are fully exempt

Leaving home: exit tax and ties

Unlike Estonia, Latvia allows dual citizenship for EU, EFTA and NATO nationals, a Dutch passport qualifies

Permanent residency and citizenship

Naturalisation needs 5 years of residence, a Latvian language test and a civics exam, faster than Estonia's 8

Permanent residency and citizenship

EU long-term resident status arrives after 5 years, needs A2 Latvian and stable income at minimum wage or above

Residency routes

Third-country nationals relocate through an employer-sponsored temporary residence permit

Residency routes

EU, EEA and Swiss citizens settle in Latvia with no programme needed, just registration

Residency routes

Sick pay splits between employer and VSAA: day 1 unpaid, employer covers days 2-9, VSAA from day 10

Sick leave

Standard hours are 8 a day and 40 a week, minimum wage is EUR 780 a month, probation caps at 3 months

Employment law

Remote work visa holders and other third-country visitors need private health cover of at least EUR 42,600

Healthcare coverage

The EHIC covers EU, EEA and Swiss visitors for necessary care in Latvia

Healthcare coverage

Healthcare is state-funded, but access depends on your insured category and co-payments apply

Healthcare coverage

Outside the EU/EEA framework, Latvia's bilateral social security coverage was not individually verified for this corridor

Social security

Self-employed VSAOI runs 31.07 percent with a EUR 780 monthly minimum base regardless of actual income

Social security

Latvia has not signed the EU telework framework agreement, so teleworking here past 25 percent flips your social security with no opt-in escape

Social security

Above EUR 105,300, a 25 percent solidarity tax replaces VSAOI rather than stacking on top of the 33 percent PIT band

Social security

Mandatory social contributions (VSAOI) run 10.5 percent employee, 23.59 percent employer, capped at EUR 105,300

Social security

EU Regulation 883/2004 coordinates your social security in full

Social security

Dividends already taxed at the corporate level are not taxed again as personal income

Personal income tax

Employment income is protected by the treaty's 183-day mirror test while you remain a home-country resident

Personal income tax

Outside the microenterprise regime, a sole trader pays income tax after VSAOI and expenses, plus a EUR 50 minimum tax

Personal income tax

The microenterprise tax still exists: 25 percent flat on turnover up to EUR 40,000, one payment covers everything

Personal income tax

Capital gains are 25.5 percent, and the reduced legacy rate needs a sale already under way at the end of 2024

Personal income tax

A fixed non-taxable minimum of EUR 550 a month applies, EUR 1,000 a month for pensioners

Personal income tax

An extra 3 percent surtax applies above EUR 200,000 a year, pushing the top marginal rate to 36 percent

Personal income tax

Latvia has not had a flat income tax rate for years, the current bands are 25.5 percent and 33 percent

Personal income tax

A tax treaty backstops you if Latvia and your home country both claim you as resident

Tax residency

Below 183 days with no declared Latvian address, you stay a non-resident taxed on Latvian-source income only

Tax residency

A declared place of residence in Latvia makes you a tax resident regardless of day count

Tax residency

183 days present in any 12-month period makes you a Latvian tax resident

Tax residency

Remote work on a plain visa-free stamp sits in a legal grey area, exactly why the remote work visa exists

Right to work

Third-country employment runs through a State Employment Agency vacancy check before OCMA sponsorship

Right to work

The remote work visa authorizes only the foreign work named in the application, not any Latvian employment

Right to work

EU, EEA and Swiss citizens work in Latvia without restriction

Right to work

EU citizens staying over 90 days must request a registration certificate

Immigration and visa

The remote work visa needs an OECD-country employer and about EUR 3,193 a month, and runs one year

Immigration and visa

Past 90 days you need a long-stay visa or residence permit, tourist status runs out at day 90

Immigration and visa

Visa-free entry to Latvia for up to 90 days in any 180

Immigration and visa

EU, EEA and Swiss citizens enter and live in Latvia without a permit

Immigration and visa