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Latvia Withholding tax rates

Latvia Withholding tax rates: no single figure applies. The reason is set out below, cited to the governing instrument. Last checked against the official source on 12 Aug 2026.

The withholding taxes Latvia levies on payments to non-resident companies under the Enterprise Income Tax Law (Uzņēmumu ienākuma nodokļa likums, in force since 2018) - management/consulting fees, real-estate disposal proceeds and payments to tax-haven entities - together with the distribution-level treatment of dividends, each at its domestic statutory rate before any double-tax agreement relief. Administered by the State Revenue Service (VID).

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Current valuestructured — see the API
In force from2018-01-01
Official sourceUzņēmumu ienākuma nodokļa likums (Enterprise Income Tax Law), Section 5 “Taxable Object of a Non-resident, Tax Rate and Tax Deduction”, official consolidated text on likumi.lv (Latvian state legal portal), English translation. Section 5(1): “The tax shall be deducted from the payments which residents (except for natural persons) and permanent establishments disburse to non-residents if personal income tax has not been deducted from such payments. The enterprise income tax shall be deducted from the following” — “1) the remuneration for management and consultancy services - 20 per cent of the amount of remuneration; 2) the remuneration for alienation of immovable property located in Latvia - three per cent...; 3) the payments made to a non-resident in accordance with Paragraphs six and eight of this Section; 4) the remuneration for the leasing or renting of immovable property located in Latvia - five per cent...”. Dividends, interest and royalties are absent from that list and are therefore not withheld — EXCEPT where the recipient is in a low-tax or tax-free country, when Section 5(6) and 5(8) charge 20 per cent
Last verified2026-08-12
Verificationprimary — No verification limitation recorded — read from the official source cited.
Every rate is quoted from Section 5 of the Enterprise Income Tax Law on likumi.lv, the Latvian state legal portal. The English translation carries the notice “Amendments not included: 03.12.2025”, so the authentic Latvian text on the same portal was read as a check: its 5. pants still gives “trīs procenti” (3%), “pieci procenti” (5%) and “20 procenti” in the same limbs, so the December 2025 amendment did not move these rates.
Provenancesource fingerprint

What this value means

THERE IS NO SINGLE WITHHOLDING TAX RATE, WHICH IS WHY value IS NULL. Latvia's system is structurally unusual twice over: like Estonia, corporate profit is taxed only when DISTRIBUTED (enterprise income tax of 20% on the grossed-up base, i.e. 20/80 - an effective 25% of the net distribution - charged on the DISTRIBUTING company), so dividends, interest and royalties paid to non-resident companies carry NO classical withholding; and the withholding charges that do exist target management fees, real-estate proceeds and tax-haven payments instead. A caller wanting a number must name which payment type; read withholding_rates rather than expecting a headline figure. ALL RATES ARE DOMESTIC STATUTORY RATES, BEFORE TREATY RELIEF. A double-tax agreement can reduce the management-fee charge to zero (residence certificate required, no permanent establishment), and EU/DTT-country residents may opt for taxation of the profit element instead of the gross proceeds on management fees and real-estate disposals, recovering excess tax by separate return. As an EU member Latvia applies the Parent-Subsidiary and Interest-Royalties Directives, but they have little residual work to do here: dividends, interest and royalties to non-tax-haven recipients are already 0% under domestic law. We do NOT serve treaty rates: they are bilateral and applying one is a legal determination rather than a lookup. The series effective_from is 1 January 2018, when the Enterprise Income Tax Law replaced the classical corporate income tax and abolished the general dividend/interest/royalty withholding. THE ZEROS ARE CONDITIONAL. Dividends, interest and royalties are not withheld because they are absent from the exhaustive Section 5(1) deduction list — not because any provision sets them to zero. Section 5(6) and 5(8) charge 20 per cent on the same payments where the recipient is located, set up or established in a low-tax or tax-free country or territory. A caller applying 0% must know where the recipient sits. A HEAD WE DO NOT SERVE. Section 5(1)(4) charges “the remuneration for the leasing or renting of immovable property located in Latvia - five per cent of the amount of remuneration”. This series carries no key for it, so a caller withholding on Latvian property rent should read Section 5(1)(4) directly rather than infer from the keys present. TERMINOLOGY TRAP FOR ANYONE RE-VERIFYING THIS. The Law never uses the word “royalties”; Section 5(8)(2) says “payments for intellectual property”. Searching this statute for “royalty” returns nothing and would wrongly suggest the head does not exist.

Get it programmatically

curl https://euroref.dev/v1/lv/withholding-tax
# $0.005 per call — x402 on Base (USDC). No key, no signup.
# History:    curl https://euroref.dev/v1/lv/withholding-tax/history?from=2020-01-01
# Provenance: curl https://euroref.dev/provenance/lv/withholding-tax

Other Latvia series: Policy interest rate · Late-payment interest (EU Late Payment Directive) · Statutory legal interest (likumiskie procenti, Civillikums 1765) · Value added tax (PVN) · VAT registration threshold · National minimum wage · Public holidays · Consumer price index (annual inflation) · Corporate income tax (UIN, distributed-profit model) · Personal income tax (IIN) · Statutory social-insurance contributions · ECB main refinancing operations rate (fixed rate)

The same figure elsewhere: Lithuania · Luxembourg · Malta · Netherlands · Norway · all 34