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Latvia - Overview and introduction

Latvia - Overview and introduction

Taxation of international executives


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The extent of the liability to Latvian tax on earnings depends upon residence status in Latvia. In turn, residence depends mainly on the length of time an individual spends (or intends to spend) in Latvia. The domicile status of the individual can also affect the liability.

There are a number of different employment arrangements for expatriates working in Latvia, however, the most common are the following:

  • an individual is seconded to work in Latvia while maintaining employment relations with his/her foreign employer
  • an individual is seconded to Latvia and changed to Latvian payroll.

There is a flat personal income tax rate of 23 percent (in 2015).

As of 1 January 2014 the official currency of Latvia is euro.

For the purposes of this publication, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment. 

© 2020 KPMG Baltics AS, a Latvian joint stock company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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