Latvia has introduced in 2018. a great benefit for shareholders. The corporate income tax can be 0% if the dividends are not paid out. So, you will only pay corporate tax on the amount of distributed dividends. Latvia has also introduced a microenterprise tax regime, which if you chose your company to enter, will not be a subject of corporate tax payment. It is great for companies with less then 40 000 EUR annual tax revenue because you get to pay 15% tax on revenue (not profit) up to that amount. After you pay this tax, you can pay up to 5 employee salaries  (720 EUR/per employee/per month) without paying any additional tax.

In case your companies revenue is more than 40000 EUR in the last 12 months or you are selling products/services to foreign companies who hold VAT number, then you must apply for a VAT number. Otherwise, you don’t.

Corporate tax VAT
20% only on distributed dividends 21%

Limited liability company


Minimum Share capital

1 EUR. If corporate shareholder 2 800 EUR

Registered office required


Physical office required


Min. number of Shareholders


Min. number of Directors


Local Director required


Other requirements


Bank signatory must travel

In some cases no

Timescale for company formation

5 days

Timescale for bank account opening

7 day

Timescale for obtaining VAT number

7 days

Statutory audit requirements


Shelf companies available


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