A French UX designer moved to Riga in 2024, kept her Paris-based clients, and spent four months freelancing before realizing she had never registered with VID. By the time she sorted it out, she owed back-dated VSAOI minimums for every month since her arrival. The registration itself took fifteen minutes. The penalty for not doing it sooner took considerably longer to resolve.

Latvia welcomes foreign freelancers -- but only those who follow the registration rules. The system does not distinguish between a Latvian citizen and a foreign resident when it comes to tax obligations. If you live in Latvia and earn income here (or earn income abroad while being a Latvian tax resident), you owe Latvian taxes. The mechanism for paying them is self-employed registration.

This article is for foreigners who are already living in Latvia with a valid residence permit. If you are considering a digital nomad visa arrangement, that involves a different legal framework.

Who Can Register as Self-Employed in Latvia

The prerequisites are straightforward but non-negotiable:

EU/EEA citizens: If you have registered your residence in Latvia and obtained a personal identity code (personas kods), you can register as self-employed through VID EDS immediately. No additional permits or approvals are required. Freedom of establishment under EU law covers self-employment fully.

Third-country nationals: You need a residence permit that explicitly allows economic activity. Not all residence permits do. A temporary residence permit issued for family reunification, for example, may or may not include the right to work as self-employed -- it depends on the specific permit conditions. Check the text of your residence permit or consult OCMA (Office of Citizenship and Migration Affairs) before registering.

In all cases, you need:

A valid Latvian personal identity code
Access to VID EDS (obtainable via Latvian internet banking, eID, or eParaksts)
A planned NACE activity code for your freelance work

One detail that EU citizens sometimes overlook: registering your residence in Latvia is a separate step from registering for self-employment. You must first register with OCMA as an EU citizen residing in Latvia, obtain your personas kods, and only then proceed to VID for self-employed registration.

Tax Residency: The 183-Day Question

Latvia considers you a tax resident if you spend 183 days or more in Latvia within any 12-month period, or if your declared place of residence is in Latvia, or if you are a Latvian citizen or non-citizen (with certain exceptions for those who can prove tax residency elsewhere).

As a tax resident, you owe Latvian taxes on your worldwide income. This includes income from foreign clients paid into foreign bank accounts. The source of the income does not matter; what matters is where you are tax-resident.

If you are tax-resident in Latvia and freelancing for clients in Germany, the United States, or anywhere else, that income is subject to Latvian IIN and VSAOI under the same rules as any domestic self-employed person.

Latvia has double taxation treaties with over 60 countries. If tax has been withheld at source in another country, you can generally credit that amount against your Latvian tax liability. But the obligation to declare and report the income in Latvia remains.

The Registration Process for Foreigners

Once you have your personal identity code and VID EDS access, the registration process is identical to that for Latvian citizens:

Log into VID EDS
Register as a self-employed person (pašnodarbinātā persona)
Declare your activity type with the appropriate NACE code
Set the start date
Submit

Processing typically takes one business day. There is no fee.

Getting VID EDS access is often the step where foreigners encounter friction. The options:

Latvian internet banking: If you have a bank account with a Latvian bank (Swedbank, SEB, Citadele, etc.), you can use your internet banking credentials to access VID EDS. This is the fastest route.
eID card: The Latvian electronic identity card provides access, but requires a card reader.
eParaksts mobile: A mobile electronic signature solution available through Latvian telecom providers.

In our experience, opening a Latvian bank account and using internet banking for VID EDS access is the path of least resistance for most foreigners. Banks vary in their openness to foreign clients -- Swedbank and Citadele tend to be the most accommodating for new residents.

Tax Obligations: Same Rules, No Exceptions

Once registered, your tax obligations are identical to any Latvian self-employed person:

VSAOI: 31.07% monthly, minimum base EUR 780/month (minimum payment EUR 242.35/month)
IIN: 25.5% on income up to EUR 105,300 (after expenses and VSAOI deduction), 33% above
Quarterly IIN advances: Due April 15, July 15, October 15, January 15
Annual declaration: Due June 1 of the following year

The reporting language is Latvian. VID EDS has an English interface for some functions, but tax forms and official correspondence arrive in Latvian. Most foreign freelancers we work with use an accountant to handle the Latvian-language reporting -- the cost (typically EUR 50-150 per month depending on transaction volume) is itself a deductible business expense.

Invoicing Foreign Clients

Self-employed individuals in Latvia can invoice clients anywhere in the world. Your invoices should include:

Your name and registration number
The client's details
Description of services
Amount in the agreed currency (EUR, USD, GBP, etc.)
Your bank details

If you invoice in a non-EUR currency, you must convert the amounts to EUR for tax reporting purposes using the European Central Bank reference rate on the transaction date.

VAT registration becomes mandatory if your taxable transactions within Latvia exceed EUR 50,000 in a 12-month period. Services provided to business clients in other EU countries generally fall under the reverse charge mechanism and do not count toward this threshold. Services to non-EU clients are generally outside the scope of Latvian VAT. The rules are precise and depend on the type of service and the client's status -- consult an accountant if your cross-border invoicing is complex.

New to Freelancing in Latvia? Local Guidance Makes the Difference.

Navigating VID registration, tax residency rules, and cross-border invoicing in an unfamiliar system is where foreign freelancers lose time and money. We handle the registration, set up your tax structure, and manage ongoing compliance so you can focus on your clients.

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Freelancing in Latvia as a Foreigner: Registration and Taxes