Most people in Latvia leave money on the table every year. VID data shows that roughly 30% of eligible taxpayers never file a personal income declaration — forfeiting refunds that average between EUR 150 and EUR 400. That is money already paid to the state, sitting there, waiting to be claimed. The only thing standing between you and your refund is a form on the EDS system and a few receipts.

The personal income declaration (gada ienākumu deklarācija) covers all income earned during the previous calendar year. For 2025 income, the filing window opens March 1, 2026, and closes June 1, 2026.

Who Must File — and Who Should File Even If They Don't Have To

Filing is mandatory if you:

Earned income from multiple employers
Had income subject to tax that was not withheld at source (rental income, foreign income, capital gains)
Were self-employed during any part of the year
Want to claim deductible expenses (this is the big one)

Even if your employer handled all IIN withholding correctly and you had no other income, filing voluntarily makes sense whenever you have deductible expenses. The math is straightforward: if you spent EUR 500 on dental work, you can claim that as a deductible expense and receive a refund of the IIN paid on that amount — typically EUR 127.50 at the 25.5% rate.

What You Can Deduct: The Full List

Latvia allows several categories of deductible expenses (attaisnotie izdevumi), capped at a combined total of EUR 10,000 per year per taxpayer:

Medical expenses — doctor visits, dental work, surgery, prescription medications, vision correction. This is the most commonly claimed category. Keep every receipt; VID may request them during verification.

Education expenses — tuition for accredited programs, professional development courses, language courses at licensed institutions. Your children's education expenses also qualify, though they are claimed on the parent's declaration.

Charitable donations — contributions to organizations with "public benefit" status (sabiedriskā labuma organizācija). The donation must go to a registered organization, and you need a confirmation document.

Life insurance premiums — payments to licensed insurance companies under savings-type life insurance contracts with a minimum term of 10 years.

Private pension contributions (3rd pillar) — contributions to licensed private pension funds. This is a powerful tax optimization tool: every EUR 1,000 contributed saves you EUR 255 in IIN (at the 25.5% rate), while the money grows in a pension fund.

All five categories share the EUR 10,000 annual ceiling. A taxpayer who spent EUR 6,000 on education and EUR 5,000 on medical expenses can only claim EUR 10,000 total.

How to File: Step by Step

Log in to EDS (eds.vid.gov.lv) using Smart-ID, eID, or eParaksts. As of 2026, these are the only accepted authentication methods.
Navigate to the annual declaration section. VID pre-fills much of the form with data from employers, banks, and insurance companies. Review every line — pre-filled data is not always complete, particularly for foreign income or non-standard deductions.
Add deductible expenses. Upload or reference receipts for medical, education, charity, insurance, and pension contributions. VID's system allows you to attach scanned documents directly.
Review the calculation. The system calculates whether you owe additional tax or are due a refund. If your employer withheld correctly and you are only claiming deductions, you will almost always see a refund.
Submit. The declaration is electronically signed through your EDS authentication. No paper copies needed.

The Refund Timeline

VID is legally required to process your declaration and issue any refund within 3 months of filing. In practice, the timeline varies:

Filed in March: Refund typically arrives within 4-6 weeks
Filed in April-May: 6-8 weeks is common
Filed at the end of May: Expect the full 3-month processing period

The refund goes to the bank account you specify in the declaration. Make sure the account number is correct — VID will not chase you if the transfer fails; you will need to contact them to resubmit bank details.

One thing that slows refunds down: VID verification requests. If something in your declaration triggers a review (unusually high medical expenses, inconsistent income data, missing employer reports), VID will send you a message through EDS asking for clarification or supporting documents. Respond promptly. Every day you delay extends your refund timeline.

Common Mistakes That Cost You Money

Not filing at all. The single most expensive mistake. If you had any deductible expenses, you are leaving money with the state.

Forgetting foreign income. If you worked remotely for a foreign company or received income from investments abroad, it must be declared. Latvia taxes worldwide income for tax residents. Undeclared foreign income can result in back taxes plus penalties.

Claiming expenses without proper documentation. A credit card statement is not a medical receipt. VID requires itemized invoices from the service provider. If you cannot produce the original receipt during verification, the deduction gets denied.

Filing after June 1. If you owed additional tax and file late, penalties start immediately. If you were due a refund, late filing is not penalized per se, but the processing timeline resets and extends.

In our experience, the taxpayers who benefit most from the declaration process are middle-income employees with families — they tend to have significant medical and education expenses that generate meaningful refunds. A family with two children, regular dental visits, and one child in private school can easily claim EUR 3,000-5,000 in deductions, translating to a refund of EUR 765-1,275.

Your Refund Is Waiting -- Let Us Help You Claim It

Filing a straightforward declaration takes 20 minutes. But foreign income, multiple deduction categories, and prior-year adjustments require careful handling -- and the difference between a EUR 200 refund and a EUR 800 refund often comes down to knowing what qualifies.

Get professional help with your declaration →

Personal Income Declaration in Latvia: When to File and How to Get a Refund