Tax Refund in Latvia: Who Gets Money Back and How to Claim It

Most tax refunds in Latvia go to ordinary employees whose employer withheld personal income tax (IIN) every month exactly as the law requires. Monthly withholding works with approximations; the annual truth is settled later. When the year is recalculated, the state often owes you money — typically EUR 150–400 for an average employee, and over EUR 1,000 for someone who maxes out pension contributions.

There is exactly one mechanism to get it back: the annual income declaration (gada ienākumu deklarācija), filed through VID's EDS system. There is no separate "refund application" — the declaration itself is the refund claim. Filing opens March 1 for the previous year, and a refund-only declaration can be submitted for any of the last 3 years at any time.

The refund equals 25.5% — the standard IIN rate — of every euro that was over-taxed: unused non-taxable minimum, unregistered dependents, and eligible expenses (attaisnotie izdevumi) for medicine, education and 3rd-pillar pension contributions.

Quick Summary

A tax refund in Latvia is claimed by filing the annual income declaration in VID's EDS system (eds.vid.gov.lv) — there is no other procedure. Refunds arise when annual recalculation shows IIN was over-withheld: you used less than your full non-taxable minimum (up to EUR 550/month in 2026), dependents were not registered in your tax book (EUR 250/month each), you worked only part of the year, or you have eligible expenses. Medical, education and donation expenses are capped at EUR 600 per person per year (max refund EUR 153); 3rd-pillar pension and life insurance contributions at 10% of annual income, max EUR 4,000 (refund up to EUR 1,020). VID pays within 3 months; refund-only declarations reach back 3 years.

Who Typically Gets Money Back

The refund is not a bonus — it is your own overpaid IIN. Monthly payroll withholding cannot know your full-year picture, so several common situations systematically produce overpayment:

Situation	Why tax was overpaid	Typical annual refund
Tax book not submitted to employer	No non-taxable minimum applied all year	EUR 200–800
Dependents not registered (or registered late)	EUR 250/month allowance per dependent missed	Up to EUR 765 per dependent
Worked only part of the year	Annual income lower than monthly withholding assumed	EUR 100–400
Income varied month to month	VID-forecast minimum did not match actual income	EUR 50–300
Eligible expenses (medical, education)	Not deductible via payroll — only via declaration	Up to EUR 153 per family member
3rd-pillar pension / life insurance contributions	Same — declaration only	Up to EUR 1,020

Dependents deserve emphasis: the allowance is EUR 250 per month per dependent in 2026. A child never entered in your electronic tax book costs you EUR 63.75 in take-home pay every month — all recoverable through the declaration, retroactively for up to 3 years.

So does the non-taxable minimum: up to EUR 550/month in 2026, phasing out to zero above roughly EUR 1,800/month, assigned by VID as a forecast from past income. If your actual income turned out lower — job change, unpaid leave, seasonal work — the annual recalculation grants a larger minimum than payroll applied. (Details in our guide to the tax-free minimum in 2026.)

Eligible Expenses: What Counts and the Exact Limits

Eligible expenses are the only refund source that requires action from you — VID knows your salary and tax book, but it only learns about your dental bill if you declare it.

Expense category	Annual limit	Max refund at 25.5%
Medical and dental services, health insurance premiums	EUR 600 per person (shared with education and donations)	EUR 153
Education: accredited studies, professional courses, children's licensed interest education	Same shared EUR 600 cap	EUR 153
Donations to public-benefit organizations	Same shared EUR 600 cap	EUR 153
3rd-pillar private pension contributions	Combined 10% of annual taxable income, max EUR 4,000	EUR 1,020
Endowment life insurance premiums (contract 10+ years)	Same combined 10% / EUR 4,000 cap	EUR 1,020

Three rules people miss:

• The EUR 600 cap is per person, and family members count — spouse, children, parents, grandparents. A family of four can claim up to EUR 2,400 of expenses, a refund of up to EUR 612.
• Anything above EUR 600 is not lost — the excess carries forward to the next 3 years' declarations. A EUR 2,000 dental implant paid in 2025 yields refunds across 2025–2028.
• The pension cap is separate and generous. Contributing EUR 4,000 to a 3rd-pillar fund returns EUR 1,020 in cash the following spring — the largest legal refund lever for employees in Latvia.

Receipts matter: VID requires documents showing the person's name and personal code. Bank statements alone are not accepted during verification.

How to Claim: The Declaration in EDS

The process takes about 20 minutes for a standard case. Log in to EDS with Smart-ID, eID or eParaksts, open the annual income declaration, and let the system pre-fill your income, withheld IIN, tax book data and receipts submitted through the Attaisnotie izdevumi mobile app. Add missing receipts, check the bank account number, submit — the system shows the refund amount before you file. For the full step-by-step walkthrough, see our personal income declaration guide.

Deadlines work in your favor. Mandatory filers (multiple income sources, foreign income, self-employment) must submit between March 1 and June 1. A refund-only declaration is not bound by June 1 — you can file any day of the year, for each of the last 3 tax years. In July 2026 you can still claim for 2023, 2024 and 2025. After 3 years, the money reverts to the state budget permanently.

How Much and How Fast

VID must pay within 3 months of filing; early filers see money in 4–6 weeks. The refund lands in the bank account stated in the declaration, after automatic offset of any tax debts. Verification requests through EDS (common with high medical claims) pause the clock until you respond — answer them the same day. The month-by-month picture is in our tax refund timeline article.

For businesses, overpayments of PVN, CIT and payroll taxes follow a different route through corrected declarations — see our guide to reclaiming overpaid tax.

Non-Residents and Expats

Latvian tax residents declare worldwide income — and claim refunds on the same terms as locals. Once you are a tax resident (183+ days or center of vital interests), the full toolkit applies: non-taxable minimum, dependents, eligible expenses — including medical bills paid elsewhere in the EU/EEA.

Non-residents have a narrower but real path. A tax resident of another EU or EEA country who earned more than 75% of their total annual income in Latvia may file the Latvian annual declaration and claim the non-taxable minimum, dependent allowances and eligible expenses like a resident. Since non-resident payroll in Latvia applies no minimum at all, the refund from a voluntary declaration can be substantial. And if you left Latvia mid-year, file that final declaration — a partial year of work almost always means the recalculation favors you.

Common Mistakes That Shrink or Kill the Refund

• Not filing at all — roughly 30% of eligible taxpayers forfeit an average of EUR 150–400 per year.
• Missing the 3-year window — a 2022 refund became unclaimable in 2026.
• Receipts without a name or personal code — VID rejects anonymous till receipts during verification.
• Claiming a family member's expenses twice — each receipt can appear in only one declaration; spouses should coordinate.
• Wrong IBAN — the transfer fails silently; VID will not chase you.
• Forgetting foreign income — a refund claim triggers a full recalculation, and undeclared foreign income can turn a refund into a tax bill plus penalties.

FAQ

How much tax refund can I get in Latvia?

The refund is 25.5% of every over-taxed euro. Concrete ceilings: eligible medical, education and donation expenses return up to EUR 153 per person per year (25.5% of the EUR 600 cap); 3rd-pillar pension and life insurance contributions up to EUR 1,020 (25.5% of EUR 4,000); each unregistered dependent up to EUR 765 per year (25.5% of EUR 250 × 12). Any unused non-taxable minimum comes on top. A family with two children, regular medical bills and one pension contributor can realistically recover EUR 1,500–2,500 for a single year.

Can I get a tax refund for previous years?

Yes. A voluntary, refund-only annual income declaration can be filed for each of the last 3 tax years, at any time of year — the March-to-June window only binds people obliged to file. In 2026 you can still submit declarations for 2023, 2024 and 2025 income. Each year is a separate declaration in EDS with its own receipts and its own refund. Once the 3-year deadline passes, the overpayment reverts to the state budget and cannot be recovered under any circumstances.

Do non-residents get tax refunds in Latvia?

Non-residents who are tax residents of another EU or EEA country can file a Latvian annual income declaration if more than 75% of their total annual income was earned in Latvia. Filing lets them apply the non-taxable minimum, dependent allowances and eligible expenses on the same terms as residents — none of which are applied in monthly non-resident payroll withholding, so the resulting refund is often significant. Non-residents outside the EU/EEA generally cannot claim these deductions, though double tax treaty relief may apply to specific income types.

When will VID pay out my refund?

VID has a legal deadline of 3 months from the date you file. In practice, declarations filed in early March are paid in 4–6 weeks, while late-May filings can take the full 3 months. Two things extend the wait: verification requests sent through EDS, which effectively pause the clock until you respond, and incorrect bank details, which cause a silent transfer failure. Any existing tax debt is offset against the refund automatically before payment.

What documents do I need to claim eligible expenses?

Itemized receipts or invoices from the service provider showing the patient's or student's name and personal code, the service and the amount — a card statement or anonymous till receipt is not sufficient if VID verifies the claim. Attach scans directly in EDS or submit them during the year through VID's Attaisnotie izdevumi mobile app, which files them under the correct year automatically. Pension and life insurance contributions are reported to VID electronically by providers, so those lines are usually pre-filled.

Get Every Euro You Are Owed Back

CORVUS ACCOUNTING & TAX prepares annual income declarations for employees, expats and non-residents — including multi-year retroactive claims and cross-border cases where the refund depends on getting residency status right.

Claim your refund with professional help →