Latvia

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

SIA

Minimum Share capital

1 EUR. If corporate shareholder 2 800 EUR

Registered office required

Yes

Physical office required

No

Min. number of Shareholders

1

Min. number of Directors

1

Local Director required

No

Other requirements

No

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

No

Shelf companies available

Yes

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