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Latvia - Other taxes and levies

Latvia - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes in Latvia? If so, what are the rates for employers and employees?

Employer and employee

Type of Insurance

 

 

Employer part  (percent)

Employee part (percent)

Total

Social Security

24.09

11.00

35.09

Total percent

24.09

11.00

35.09


The rate in the table above is standard Social security contributions’ rate. There are differentiated rates, unlikely to apply to expatriates, such as for working individuals at pension age, self-employed individuals and some other groups of socially insured individuals. 

Gift, wealth, estate, and/or inheritance tax

Gifts received from individuals are non-taxable if the gift value in the taxation year does not exceed EUR1423. If it does, then 23 percent Personal income tax is payable on the excess amount.

Gifts received from employers are subject to payroll taxes if the value of the gift exceeds EUR15.

There is no wealth or inheritance tax in Latvia.

Real estate tax

Are there real estate taxes in Latvia?

There are differentiated rates of real estate tax in Latvia:

  • 1.5 percent from the cadastral value of the property - for property and land used in business activity and also for engineering technical building – 1.5 percent
  • 3 percent from the cadastral value – for land not used in agriculture
  • Up to 3 percent for buildings degrading environment and threatening human safety
  • 0.2 – 0.6 percent from the cadastral value – for houses and apartments for inhabitants not used in business activity

The minimal tax payment for each taxpayer in the particular municipality is EUR7.

Sales/VAT tax

Are there sales and/or value-added taxes in Latvia?

The standard VAT rate is 21 percent. There is also a reduced rate of 12 percent. There are several transactions which are subject to VAT rate at 0 percent or are VAT exempt. 

Unemployment tax

Are there unemployment taxes in Latvia?

There are no separate unemployment taxes in Latvia since such payments form a part of social security contributions. 

Other taxes

Are there additional taxes in Latvia that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, etc.

There is a real estate transfer duty in Latvia. The rate is 2 percent of the highest of the purchase or cadastral value of the property or valuation for mortgage purposes. The maximum tax payable is EUR42 686.15. The rate for close relatives is 0.5 percent from the real estate value.

Foreign financial assets

Is there a requirement to declare/report offshore assets (e.g. foreign financial accounts, securities) to the country/jurisdiction’s fiscal or banking authorities?

N/A.

Disclaimer:

All information contained in this publication is summarized by KPMG Baltics AS, a Latvian limited liability company and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. The information contained in this publication is based on law “On personal income tax”, the Web site of Ministry of Finance Republic of Latvia, law “On State social insurance”, the Web site of State Social Insurance Agency.

© 2021 KPMG Baltics AS, a Latvian joint stock companyand a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

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