Business in Latvia
Due to the relatively high taxation of economic activity in Poland and complicated provisions, we often get questions from customers about the possibility of establishing a company in Latvia. The Latvian legal system and taxation are known for their simplicity and low taxation.
We offer you comprehensive service in setting up a business in Latvia. The offer includes specifying the specifics of your requirements, completing the documentation and submitting it to register the company.
Taxes in Latvia
Latvia is a very friendly business. The tax rate applicable is 15%, while for micro-enterprises it is reduced to 9% or 11%. The cost of establishing a company is 12 euros or 64 euros for the accelerated mode. In the case of establishing a company with a capital higher than 2846 euros, the rates of 142 and 427 euros are applied accordingly. Registration takes a very short period of time. Up to three days. The whole procedure is maximally simplified. The company established in Latvia uses both the hive resulting from Latvian law and EU tax law.
The specificity of Latvia is the occurrence of special economic zones that allow concentration of capital and construction of industrial parks. If we set up a company in one of the industrial parks, we can count on an 80% corporate income tax relief or a total discount when it comes to the payment of property tax.
It is also very easy to start a business on the basis of self-employment. Self-employment is the equivalent of a sole proprietorship operating on the basis of an entry in the business activity register.
The calendar year coincides with the period for submitting annual declarations. However, it can not exceed 12 months. An additional duty imposed on companies is the obligation to pay an advance to secure the tax by the 15th of each month. Additional obligations are imposed on entities achieving revenues or providing goods or services worth more than EUR 50,000.
Advantages of running a business in Latvia:
– linear income tax on natural persons in the amount of 25%,
– linear corporate income tax in the amount of 15%,
– VAT of 18% and a reduced rate of 9%,
– no tax on dividends on the company’s profits,
– non-residents are subject to a limited tax liability regarding income received in Latvia,
– no obligation to tax dividends from areas outside the EU / EEA,
– very flexible requirements regarding the establishment of commercial law companies,
– close relations with Russia and a network of business contacts on the spot,