Criteria for tax residence in Latvia

If you already know the criteria for tax residency in Latvia, just proceed to the selection of the object of taxation relevant to you. Or read below for details on the Latvian tax residency criteria.

As a general rule, tax residents are recognized (Art. 2 of the Law on Personal Income Tax - Par iedzīvotāju ienākuma nodokli, 11.05.1993, hereinafter - Law 1; Art. 14 of the Law on Taxes and Duties - Par nodokļiem un nodevām, 02.02.1995 , hereinafter - Law 2):
person, if the registered place of residence of this person is in the Republic of Latvia or
the person stays in the Republic of Latvia for 183 days or more in any 12-month period beginning or ending in the tax year
For the purposes of applying the second criterion:
- an individual who was not recognized as a resident in the previous year will be considered a resident in the current year from the date of his first arrival in Latvia;
- an individual who will not be recognized as a resident in the following year will not be recognized as a resident in the tax year after the date on which he/she left Latvia if in the period after that date this person has closer relations with another country than with Latvia (this person owns real estate abroad, his family lives there, or he makes social security contributions abroad).

Recognition of an individual as a tax resident of Latvia does not depend on his citizenship.

The occurrence of the obligation to pay tax depends on the type of income (wages, income from the sale of property, dividends, etc.), therefore, the detailed procedure for fulfilling the tax obligation is described on the corresponding page dedicated to a specific income.
The Latvian tax residency criteria are described by the OECD in English here.

Regardless of whether the criteria for recognizing you as a tax resident of Latvia is met, you may be a tax resident in another country. Check it out by selecting another jurisdiction that is relevant to you here.

Depending on the period of stay of an individual in the territory of Latvia, a person may cease to be a tax resident of Latvia or, conversely, become one. Since tax residence is determined for any 12 consecutive months, tax status may change during the year.

Changing the tax status is relevant primarily in a situation where the tax is calculated and paid by the tax agent since he pays the tax as income is paid.

Since the procedure for calculating income tax depends on the type of income of an individual, therefore, the detailed procedure for fulfilling the tax obligation is described on the corresponding page dedicated to a particular income.

So, if you are a tax resident of Latvia or have income from special regime activities in Latvia or property in Latvia, then go to the page for selecting the object of taxation relevant to you.

Regardless of whether the criteria for recognizing you as a tax resident of Latvia is met, you may be a tax resident in another country. Check it out by selecting another jurisdiction that is relevant to you below.