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How to use the new corporate income tax regime for investment purposes

The new corporate income tax is payable (20/80) upon the distribution of the profits. With respect to the investment of shares there are several goods things: #1 Pass-through dividends are not taxed,  #2 Capital gains from the sale of shares in the hands of the Latvian holding company are not taxed until the profit distribution  #3 Capital gains can be distributed tax-free if the shares were held for more than 3 years before the sale of shares. So, how to […]

Changes in the Latvia tax laws effective as of 1 January 2018

Corporate income tax In the new Latvian Corporate Income Tax Act (hereinafer – the Act) a conceptually new regime for payment of the corporate income tax was established. The act intends to postpone payment of the tax until the profit is distributed or in other way redirected to the expenses that do not ensure further development of the taxpayer, i.e. taxation is transferred from the moment of the derivation of profit to the moment of the distribution of profit. Thus the […]

Buying the real estate in Latvia – tax aspects

Usually an individual, when buying a real estate inteded for personal use, for example, an apartment, a flat or a private house, will register himself as an owner of the property. Indeed, the mere purchase of the real estate as such, does not create any immediate tax consequences. However, if the buyer has an intention (or at least allows) to sell this property sometime in the future, it is probable that he/she will be liable to pay tax for the sale of […]

Latvian company a perfect solution for trading with listed securities

Latvia could be used as a platform for both portfolio and direct investments for the following free reasons: Securities listed on stock-exchanges are traded tax-free The gains arising in the hands of a Latvian company from disposal of the securities (shares, bonds etc) which are traded/quoted on regulated markets within the European Union/European Economic Area countries, as well as the profit from trade of investment certificates in EU and EEA open-end investment funds are not taxes with Latvian corporate income […]

Setting up business in Latvia

The company formation in Latvia creates many business and tax opportunities. The video summarizes available legal forms and applications of Latvian entities.