Company formation. Accounting services.

  Company formation Accounting services About Latvia

LLC formation



You are visiting :  About Latvia



» About us

» About Latvia

» Company formation

» Accounting services

» Partners

» Contacts





     About Latvia


(image from Google maps)

   Latvia, officially Republic of Latvia is one of the three Baltic states in Northern Europe in the Baltic region. It is bordered to the north by the Baltic state Estonia, to the south by the Baltic state Lithuania, and to the east both by Belarus and the Russian Federation. Across the Baltic Sea to the west lies Sweden.

 The Latvian government and local authorities have worked diligently to streamline procedures for doing business in Latvia, for instance, companies can be established just in one day. As a member of the EU, Latvia operates under Europe-wide legislation. To further stimulate investments, Latvian Government is implementing many state support programs via EU Structural funds for private business development.

 The most popular business entity is the limited liability company (SIA or LLC). Corporate tax rate is fixed at 15%, one of the lowest in the EU.

 A Latvian company is well positioned to be an effective EU intermediary for trade between Western and Eastern, “Russian- speaking” countries. Latvia is a multi-lingual society where Latvian, Russian and English languages are commonly spoken and professionals are adept at working with both Western and Eastern business cultures.

  Latvia facts:

 Capital: Riga

 Official language: Latvian

 Population: 2.3 million

 Political system: Parliamentary democracy

 EU Membership: since 2004

 Official currency: Latvian lats (LVL)


      Information about taxes in Republic of Latvia


Tax weight

  Total tax weight in Latvia which forms from all the taxes including Social insurance tax is 30,5% from GDP. It is one the lowest index via 27 EU countries. Average tax weight is 39,8% from GDP. The highest tax weight are in Denmark - 48,7%, Sweden - 48,3%, Belgium - 44%, France and Italy - 43,3% from GDP.


    Value added tax (VAT)

 Most of goods and services are taxed with 21% but there are exceptions and some specific goods and services are taxed with 10% VAT.


    Personal income tax

 Personal income tax is 23% from private incomes.


    Corporate income tax

 Corporate income tax to companies is 15%.



 Losses of previous periods can be carried forward for five years.


   Tax rates in European Union


 Here you can see comparison of main taxes in European Union

Country Income tax VAT
Corporate Individual
Austria 25% 21-50% 20%
Belgium 33,99% 25-50% 21%
Denmark 25% 38-59% 25%
Estonia 21% 20% 18%
Finland 26% 7-30,5% 22%
France 33,33% 5,5-40% 19,6%
Germany 30-33% (effective) 15-45% 19%
Hungary 16% 18% and 36% 20%
Italy 31,4% 23-43% 20%
Latvia 15% 23% 21%
Lithuania 20% 15% / 20% 19%
Norway 28% 28-49% 25%
Poland 19% 18% / 32% 22%
Portugal 25% 0-42% 20%
Spain 30% 24-43% 16%
UK 28% 0-40% 15%


If you need legal or accounting services or consultations, please feel free to contact us:

Tel. (371) 29 112 333 (EN, LV, RU)


Company formation.                                      Accounting services.