Head of practice
Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.
Tax optimization in Latvia
With the globalization of business, tax structuring becomes a key tool for minimizing costs and increasing competitiveness. Latvia, as a member of the EU, offers an attractive tax system that allows you to optimize taxation without violating the law. The law firm “Prikhodko & Partners” specializes in providing tax planning services, helping clients structure assets and operations in Latvia to achieve maximum efficiency.
Advantages of the Latvian tax system
The Latvian tax model is unique in that corporate income tax (CIT) is only payable upon distribution of dividends or equivalent payments. The basic CIT rate is 20% on gross profit, which is effectively 25% due to the 0.8 coefficient. However, for companies where the shareholders are exclusively individuals, an alternative regime is introduced from 1 January 2026: CIT 15% plus personal income tax (PIT) 6% on dividends. This allows for deferral of taxation on reinvested profits, stimulating business growth.
The standard VAT rate is 21%, with an increased reduced rate of 13% from 2026 for certain goods. A simplified flat-rate system is in place for micro-enterprises, which is ideal for small businesses with a turnover of up to a certain limit. Latvia has concluded over 60 double taxation agreements, making it a hub for holding structures. For example, foreign investors can use Latvian companies to manage assets in the EU, reducing taxes on royalties, interest and capital gains.
Changes expected from 2026 include easing restrictions on interest payments for public-private partnerships and securities, as well as increasing excise duties on tobacco, alcohol and gambling. This requires advance planning to avoid additional costs.
Tax optimization as a service
Tax structuring is not just tax minimization, but a comprehensive strategy that includes choosing a business form, asset allocation and using international norms. Prikhodko & Partners offers a full range of services:
- Consultations and analysis. We assess the current structure of your business, model taxation scenarios in Latvia and calculate potential savings. For example, for IT companies or holdings, we recommend registering an SIA (analog of an LLC) with deferred CIT.
- Registration and support: We help with opening companies, obtaining residency and bank accounts. From 2026, we focus on a new regime for individual shareholders, which reduces the effective dividend rate to 21%.
- Holding structure: We create multi-level structures to optimize taxes on profit repatriation. Latvia is ideal for holdings due to the absence of a tax on outgoing dividends in the EU.
- Compliance and audit: We ensure compliance with EU regulations (DAC8, CARF from 2026), prepare transfer pricing and reports on controlled transactions.
Our experts take into account individual needs: for Ukrainian entrepreneurs – integration with the EU, for investors – asset protection. Successful cases include optimization for exporters, where tax savings reach 15-20%.
Latvia is the optimal choice for tax structuring due to its flexible system and changes in 2026. Tax optimization is not evasion, but a legitimate tool for growth. Prikhodko & Partners is your reliable partner in this process.
Contact us for a consultation to turn taxes into an advantage.
Calculate the cost of services
1 question
Do you need to register a company in Latvia?
2 question
Do you need to carry out tax structuring or optimize your tax burden?
3 question
Do you need a consultation urgently?
You may also need:
call back
during the day
Compensation for moral, material damage
Protection of honour, dignity, and business reputationContract Development for Business and Legal Entities
Licensing of business activities
Compensation for moral, material damage
Legal services in the field of cryptocurrency and blockchain
REGISTRATION OF COMPANIES AND OPENING OF BANK ACCOUNTS
Sale and purchase of ready-made firms
Grants and attracting investment
Business registration and support in Great Britain
Business registration and support in Switzerland
Business registration and support in the EU
Business Registration and Support in the Gulf Countries (GCC)
Business registration and support in Turkey
Business registration and support in USA
Lawyer for administrative cases
Legal services for medical businesses and doctors
Protection of honour, dignity, and business reputation
Real estate transaction support
Escort of the tender participant
Trial lawyer: support and defense in court
European Court of Human Rights (ECHR)
