If you are a Latvian tax resident and work or have worked abroad, it is important to understand where taxes must be paid, when a tax return is required, and how residency status affects your obligations. This guide explains the essentials in plain English.<\/p>\n
You are generally treated as a Latvian tax resident<\/strong> if:<\/p>\n your declared place of residence is in Latvia;<\/p>\n<\/li>\n you stay in Latvia for 183 days or more<\/strong> within any 12-month period;<\/p>\n<\/li>\n you are a Latvian citizen employed abroad by the Latvian government.<\/p>\n<\/li>\n<\/ul>\n Latvian tax residents are normally taxed on their worldwide income, unless specific exemptions apply.<\/p>\n In principle, yes \u2014 but there is an important exception.<\/p>\n you work in another EU Member State or in a country that has a double taxation treaty with Latvia; and<\/p>\n<\/li>\n your salary in that country is subject to income tax (or an equivalent tax).<\/p>\n<\/li>\n<\/ul>\n In this case, Latvia does not tax the same salary again.<\/p>\n The exemption does not apply to income earned:<\/p>\n on ships used in international transport;<\/p>\n<\/li>\n through staff leasing arrangements to a Latvian company or a permanent establishment in Latvia;<\/p>\n<\/li>\n outside employment relationships, such as pensions, royalties, dividends, or similar income.<\/p>\n<\/li>\n<\/ul>\n The annual personal income tax return must be submitted:<\/p>\n by 1 June<\/strong> of the following year;<\/p>\n<\/li>\n by 1 July<\/strong> if total annual income exceeds EUR 105,300<\/strong>.<\/p>\n<\/li>\n<\/ul>\n Foreign employment income must be reported in Annex D2<\/strong> of the tax return.<\/p>\n You do not<\/strong> need to file a tax return if:<\/p>\n you worked in an EU Member State<\/strong>; and<\/p>\n<\/li>\n your salary there was already taxed.<\/p>\n<\/li>\n<\/ul>\n ⚠️ Important:<\/strong> Latvia avoids double taxation (provided that there is no Treaty in place):<\/p>\n If tax paid abroad is equal to or higher<\/strong> than the tax calculated in Latvia, no Latvian tax is payable.<\/p>\n<\/li>\n If tax paid abroad is lower<\/strong>, you must pay the difference<\/strong> in Latvia.<\/p>\n<\/li>\n If tax paid abroad is higher<\/strong>, the excess amount is not refunded<\/strong>.<\/p>\n<\/li>\n<\/ul>\n Tax paid abroad must be supported by official documents<\/strong>.<\/p>\n If you work in another EU country (or, for example, Norway, Switzerland, Canada, etc.), social security contributions are usually paid in the country where the work is actually performed, not in Latvia.<\/p>\n For example, if you work in Ireland, social contributions are paid in Ireland under Irish law.<\/p>\n Yes, under certain conditions.<\/p>\n If:<\/p>\n you no longer stay in Latvia for more than 183 days; and<\/p>\n<\/li>\n your personal and economic ties have moved to another country;<\/p>\n<\/li>\n<\/ul>\n you may apply to the Latvian State Revenue Service to change your tax residency status by submitting:<\/p>\n an application requesting the change of residency status; and<\/p>\n<\/li>\n a tax residence certificate issued by the foreign tax authority.<\/p>\n<\/li>\n<\/ul>\n The State Revenue Service will assess all circumstances before making a decision.<\/p>\n If you work abroad for an extended period, make sure to keep all documents proving tax payment and residency status. This will make communication with the Latvian tax authorities much easier and help avoid misunderstandings.<\/p>\n","protected":false},"excerpt":{"rendered":" If you are a Latvian tax resident and work or have worked abroad, it is important to understand where taxes must be paid, when a tax return is required, and how residency status affects your obligations. This guide explains the essentials in plain English. Who is considered a Latvian tax resident? You are generally treated […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-18590","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n\n
Do I have to pay Latvian Income Tax on salary earned abroad?<\/h2>\n
Latvian income tax is NOT payable if:<\/h3>\n
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When does this exemption not apply?<\/h2>\n
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Do I have to file an annual tax return?<\/h2>\n
Usually \u2014 yes, if you worked abroad.<\/h3>\n
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When is a tax return NOT required?<\/h3>\n
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Income earned in the United Kingdom<\/strong> must always be declared in Latvia, even though Latvian income tax does not apply.<\/p>\nWill I be taxed twice on the same income?<\/h2>\n
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What about social security contributions?<\/h2>\n
Can I become a Latvian non-resident for tax purposes?<\/h2>\n
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Practical tip<\/h2>\n