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Wednesday 01.10.2014 | Name days: Lāsma, Zanda, Zandis
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Latvia could become the second Cyprus

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Starting from next year, dividends paid to or received from non-residents will not be subject to Corporate Income Tax. This will allow attracting investors from third countries to Latvia, tax and logistics experts interviewed by Dienas Bizness note.

According to specialists, this innovation will help motivate foreign holdings to creating administrative centres in Latvia, not Cyprus or Malta, or other countries.

Latvia is made more attractive also by the recently signed convention with Russia regarding the cancellation of the twofold taxation. The signed convention will reduce Russian and Latvian corporate tax burdens, says Tax and Finance Consultant Marina Bickovska.

However, complicated accounting mechanisms and a higher Corporate Income Tax rates remain a serious obstacle for investors. Finance Ministry hopes the planned changes will contribute to the formation of regional management centres in Latvia, as well as finance management centres, copyrights and holding associations’ protection centres.

According to Ainis Dabols, business consultant, the changes to the Corporate Income Tax law – is a step forward towards non-residents, which shows Latvia is a country of low taxes. At the same time, he noted that Russian businessmen already come to Latvia to open their company branches here.

Ref: 104.109.109.4629


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  1. D. says:

    A very wise move by Latvia. I registered a company in LV and have all ready paid more than LVL 100,000 in tax. If LV attracts more international investors like me, the tax burden on regular people can (and should) be reduced.
    Singapore did this and has in record time become one of the wealthiest nations on earth.
    Also, more American and EU investors in LV will reduce the Russian influence.

    Thumb up 0 Thumb down 0

  2. LH says:

    spiegel.de/wirtschaft/soziales/a-865478.html

    Thumb up 0 Thumb down 0

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