What are the taxes

Tax rates in Latvia

Tax Rate Explanation
VAT 22% Obligatory registration as a VAT payer if turnover during previous 12 months exceeds 35,000 LVL (approx. 49,800 EUR)
Corporate income tax The 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 tax 10% 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 tax 25%
Social security contributions 11% Employee’s contribution
24.09% Employer’s contribution
Real property tax 0,2 – 1,5% Depends on the form of real property