• Company in Latvia

    15% CORPORATE TAX

    SHELF COMPANY + VAT

    REMOTE BANK ACCOUNT

  • Company in Latvia

    15% CORPORATE TAX

    SHELF COMPANY + VAT

    REMOTE BANK ACCOUNT

  • Company in Latvia

    15% CORPORATE TAX

    SHELF COMPANY + VAT

    REMOTE BANK ACCOUNT

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Latvia

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Latvia is in European Union since 2004 and in Euro Zone since 2014. It is located at the crossroads of Europe and Russia. Standard corporate tax is 15%, one of the lowest in the EU. A company in Latvia is effective vehicle for intermediary trading between Western Europe and Eastern Russian speaking countries.

Latvian company Key features

  • Ready-made Companies with VAT available. Ask now.
  • 1 Board member and 1 Shareholder required – may be residents of any country
  • Standard share capital is €2800
  • Tax Resident Certificate is available
  • Corporate tax rate is 15% - one of the lowest in European Union

Popular latvia company applications


LIMITED LIABILITY COMPANY (SIA) FOR TRADING  

The most popular form of business in Latvia is SIA, the limited liability company. It is popular for VAT trading within European Union, as VAT registration process is normally straightforward, and the corporate income tax is just 15%.

Latvian Limited Liability Company pays corporate income tax (15%) on worldwide income. The Company can obtain Tax Resident Certificate to apply for Double Tax Treaties benefits.

Contact us for trading company package. Or ask for alternative application.


LIMITED LIABILITY COMPANY (SIA) FOR HOLDING

In 2013 Latvia introduced a very effective holding regime. Latvian holding companies do not prescribe any special requirements towards subsidiaries in terms of holding period, percentage of participation, level of taxation of subsidiaries, etc. This is what makes Latvian holding regime different from other holding jurisdictions like the Netherlands or Malta and even Cyprus.

Income from dividends paid to Latvian holding company from its subsidiaries is not taxed.

Dividends paid by Latvian holding company to legal entities are exempt of withholding tax.

Key advantages:

  • 0% on dividends income, received by a Latvian company from foreign companies (except tax havens).
  • 0% on capital gains from sale of shares of foreign subsidiaries (except tax havens).
  • 0% on dividends, paid by a Latvian company to foreign companies (except tax havens).
  • No restrictions for Participation Exemption, i.e. no minimum holding period, no minimum percentage of holding and etc.

Contact us for holding company package. Or ask for alternative application.


MICRO-ENTERPRISE

Latvian Micro-Enterprise can be a low-tax instrument for companies with small turnover and low costs.  Micro-Enterprise is a regular limited liability company with special taxation - 9% from turnover (not profit!). It works well for companies with low expenses such as service companies, consulting, translations, marketing research companies, etc.

Any company can apply for 9% Micro-Enterprise Special Status, if it meets the following requirements:

  • Annual turn-over is under EUR 99 000)
  • Director(s) and Shareholder(s) are private person(s).
  • Company employs no more than 5 persons
  • One employee or Director receive maximum salary of EUR 700 per month.
  • It is possible to be a Shareholder only at 1 Micro-Enterprise.

Key advantages:

  • Special taxation of 9% on turnover. Tax paid quarterly.
  • VAT registration is available
  • Monthly salary of director(s) and/or employees (maximum EUR 700) is net. No additional social taxes paid provided that 9% Micro-Enterprise Tax covers all taxes.
  • 10% withholding tax applies on the distribution of profit after deduction of administration costs.
  • Micro-Enterprise Tax Company can switch to a regular company.

Contact us for formation package. Or ask for alternative application.

Latvian company Taxation

  • CORPORATE INCOME TAX (CIT): rate is fixed at 15%, one of the lowest in the EU. Micro-enterprises pay 9% tax from the annual turnover.
  • INCOMING DIVIDENDS: 0% paid to foreign companies (if not tax havens)
  • CAPITAL GAINS TAX (CGT): 0% paid to foreign companies (if not tax havens)
  • WITHHOLDING TAX:
    ROYALTIES: 0%, paid by a Latvian company to foreign companies (except tax havens).  5-15% if paid to individuals.
    DIVIDENDS: 0% on dividends, paid by a Latvian company to foreign companies (except tax havens).  10% if paid to individuals.
    INTERESTS: 0%, paid by a Latvian company to foreign companies (except tax havens).  10% if paid to individuals.
  • BILATERAL TAX TREATIES with 51 country
  • VALUE ADDED TAX (VAT). 0% under EU VAT regime for EU intratrading. The standard rate sales within Latvia is 21%.

How do I proceed with company registration in Latvia?

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