What are the taxes

Tax rates in Latvia

TaxRateExplanation
VAT22%Obligatory registration as a VAT payer if turnover during previous 12 months exceeds 35,000 LVL (approx. 49,800 EUR)
Corporate income taxThe standard rate -15%. For micro companies – 9% (Turnover may not exceed 70,000 LVL (approx. 100,000 EUR) during the financial year. Supposing turnover exceeds 70’000 LVL; tax rate for exceeded part will be 20%.The number of employees may not exceed 5).
Dividend tax10%For natural persons 10% For legal persons, except for dividends paid out to resident of other European Union or European Economical Zone country
Personal income tax25%
Social security contributions11%Employee’s contribution
24.09%Employer’s contribution
Real property tax0,2 – 1,5%Depends on the form of real property