Latvia Tax 2018

Value added tax (VAT)

• 21% standard rate
• 12% reduced rate (medicine, med. Equipment, literature

Corporate income tax (CIT)

• 20% standard rate when profits are distrubuted, 0% when profits are retained in the company
• 15% reduced rate due to microenterprice (income less than 40,000 EUR per year)

Personal income tax

• 20% until 20,004 EUR ; 23% 20,005 – 55,000 EUR ; 31,4% from 55,001 EUR
• 0% dividends, 20% interests, 20% real – estate income
• 20% capital gains tax

Social security tax

• 11% for employee
• 9% for employer

Property tax

• 2 – 3% of the cadastral value

Latvia Euro introduction 2014

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Latvia Euro introduction 2014

With great suspense the introduction of the Euro from the 1st January 2014 is awaited.

It has been much discussion about the Euro advantages and disadvantages. Now it is time that preparations are made:

• The official rate is 0.702804 EUR = 1 LVL.
• Prices have to be displayed in Euro and Lat from 1.10.2013 to 30.06.2014 to ensure transparency.
• The shareholder capital of companies can be registered in Euro since 9 July 2013

As of 1 January 2014, the following rules apply:

The advantages of Latvian companies

The advantages of Latvian companies

Latvia in the center of Europe is a highly attractive destination for several reasons.

Attractions

1. European Union membership - An open market economy - a secure business environment
2. An excellent geographical location in the center of Europe between Scandinavia, Russia and Western Europe
3. Highly skilled and professional labour force with fluent international communication in English and Russian