Taxation of dividends in Latvia

Starting from January 1, 2018 profits of Latvian residents individuals and companies is subject to new dividend taxation regime, introduced by the Latvian Law on Corporate income tax of July 28, 2017 and relevant changes in the Latvian law On personal income tax.

The law provides that dividends for Latvia tax residents individuals is exempt if before either corporate income tax is paid by the Latvian company, or dividends are being subject abroad to either personal income tax or corporate income tax.

It is presumes that in case dividend payment is done from EU or EEA company, the dividends is paid, even the effective tax rate abroad is zero.  As example, Latvian resident receiving dividends from Cyprus, where there are zero tax paid in Cyprus, will not be subject to dividend taxation in Latvia.   This standing is confirmed by recent ruling by the State Revenue Service in explaining taxation of profits received after January 1, 2018. 

To find out more about Tax reform in Latvia, Lithuania or Estonia contact our Latvian tax attorney Valters Gencs at

T: +37167240090

F: +37167240091

Contact us about

Taxation of dividends in Latvia

Your message was sent. Thanks

Get your FREE Copy
of Guide to do Business in the Baltics

Your message was sent. Thanks

Gencs photo

About Valters Gencs

In many regards, Latvian advocate Valters Gencs is the archetypal modern Baltic attorney – US educated, willing to take a commercial risk with his firm, which has been successfully operating for almost 16 years.  

Read more.

Our Team

Our team consists of knowledgeable and experienced advocates, lawyers and tax consultants in the Baltic States. Our professionals will find the most appropriate solution for your situation. 


Our knowledge

Our knowledge

Gencs Valters Law Firm has a 20-year practical experience in legal services, tax consulting, mergers and acquisitions, banking law, finance consulting, corporate, intellectual property, immigration and litigation.