Taxes in Latvia

Income tax:

In Latvia, the progressive income tax rate is applied to the income of residents:

  • An annual income of up to EUR 20,004 is subject to an income tax rate of 20%.
  • An annual income of more than EUR 20,004 but not more than EUR 55,000 is subject to an income tax rate of 23%.
  • The part of the annual income exceeding EUR 55,000 is subject to an income tax rate of 31.4%.

The income is subject to a tax-free amount and tax deduction for maintenance creditors.

Note:
It is pleasing to note that profits from a corporation (“SIA” comparable to a GmbH or LTD) are not subject to income tax. No income tax is payable on the distribution of the profits, an advantage that you will not find in almost any EU country.

99 % of our clients remain residents with their company after the successful insolvency due to the favorable and business-friendly tax.

Tax Law

In the case of EU insolvency, it is not only the statutory provisions relating to insolvency that must be observed. The tax law is also affected. Finally, we are aware that you also want to stay in your home country. In this case, the tax regulations must be observed, as otherwise there is a risk of trouble and the tax investigators will call for action. Within the scope of the insolvency mandate, we help you to comply with the tax regulations so that legal debt relief is guaranteed. This means that we take all necessary measures to protect you from reprisals by the tax office.

How

Our advice with regard to tax law is not about tax evasion or cover-up. The following statement also applies in this case: Who moves within the scope of the laws and observes these, does not act illegally.