Latvia Taxation Of Non-Residents

Non-residents are liable for Latvian tax only in respect of Latvian source income including:

• employment income for duties performed within Latvia in favour of a Latvian or foreign employer, or performed outside Latvia for a Latvian employer;
• income from independent professional services rendered to Latvian residents or registered permanent establishments within and outside Latvia;
• income from professional services such as an artist, sportsman or trainer performed in Latvia;
• income from performing duties as the member of a Board or advisory body of a Latvian company;
• income from a Latvian registered partnership;
• income in the form of liquidation proceeds from the liquidation of a Latvian company that exceed payable dividends;
• income from the sale or use of immovable property located in Latvia;
• income from the lease of movable property in Latvia;
• income from agricultural production from “individual” farms;
• dividends;
• interest income, except interests from Latvian credit institutions;
• income from intellectual property (royalties);
• insurance payments, if the agreement is concluded by an employer and it is terminated before a specified period;
• pensions paid according to Latvian legislation.

Personal tax paid abroad may be credited against tax payable in Latvia, but not more than 25% of the income taxed abroad. To credit foreign paid tax, statements from foreign tax authorities must be submitted to the Latvian tax authorities.
Foreigners working in Latvia for a non Latvian employer must register with the tax authorities and either the employer or the foreigner must, on a monthly basis, pay personal income tax based on their monthly salary.
Expatriates who have received remuneration abroad and stayed in Latvia for more than 183 days within any 12 month period starting or ending within a year, or who have received Latvian residence permit, must file a Latvian individual income tax declaration, except where tax treaty exemptions are applicable.