Frequently Asked Questions
Answers to common questions about accounting, taxes, and business services in Latvia.
How much do accounting services cost in Latvia?▼
Monthly accounting fees start from EUR 150 for new companies and range from EUR 200-1000+ for active businesses, depending on document volume, number of employees, and complexity of operations.
What documents do I need for SIA registration?▼
You need a founding decision, articles of association, proof of legal address, share capital deposit confirmation (minimum EUR 1), and identification documents for founders and board members.
When is the annual report deadline in Latvia?▼
The annual report must be filed with the Enterprise Register within 4 months after the end of the financial year. For most companies with a calendar-year fiscal year, the deadline is April 30.
Do I need a licensed accountant in Latvia?▼
Latvian law does not require a licensed accountant for most businesses. However, companies exceeding certain thresholds must have their annual reports audited by a sworn auditor.
What is the corporate income tax rate in Latvia?▼
Latvia has a 0% CIT on reinvested profits. When profits are distributed (dividends), a 20% CIT applies (calculated as 20/80 of the net distribution). An alternative 15% regime is available for companies with revenue under EUR 5 million.
When should I register for VAT (PVN)?▼
You must register for VAT when your taxable transactions exceed EUR 40,000 in the previous 12 months, or when you expect to exceed this threshold. Voluntary registration is possible at any time.
How long does SIA registration take?▼
Standard SIA registration takes 3-5 business days. Express registration (1 business day) is available for an additional fee. CORVUS handles the entire process.
What are the employer costs beyond gross salary?▼
Employers pay 23.59% in social contributions (VSAOI) on top of gross salary. Additionally, there may be costs for workplace risk insurance and professional development.
Can a foreigner open a company in Latvia?▼
Yes, any person or legal entity, regardless of nationality, can establish a SIA in Latvia. Non-EU residents may also qualify for a residence permit based on investment in a Latvian company.
What is the micro-enterprise tax regime?▼
The micro-enterprise tax is a simplified regime with a 25% rate on revenue (not profit). It is available for sole proprietors (IK) and SIA with revenue up to EUR 40,000 and up to 5 employees.
How do I switch accountants without disrupting my business?▼
We handle the full transition process: receiving documents from your previous accountant, verifying the accounting database, and ensuring continuity. The transition typically takes 2-4 weeks.
What penalties exist for late tax filing in Latvia?▼
Late tax declaration filing can result in fines from EUR 30 to EUR 700 per declaration. Late tax payment incurs a 0.05% daily penalty. Repeated violations can lead to higher penalties.