A typical Latvian landscape is a mosaic of vast forests rich in wildlife, alternating with fields, pastures, and farmsteads. Ethnically, the major population is Latvian and Russian, and more than a third live in the capital Riga, the European Capital of Culture 2014. In the same year the Euro became the country’s currency. The country has becoming a popular tourism destination, and place to live for people from all over Europe. The official language is Latvian.
Situated on the Baltic coast, Latvia has had one of the highest growth rates in Europe. Its large forests supply timber for the construction and paper industries. The country also produces machine tools, consumer goods, and textiles.
Latvia has a standard tax rate depending on the nature of the income. A foreign resident pays tax only on his income in Latvia without the income earned overseas. CXC provides its clients with assistance regarding the Residence Permit Application as well as with the Value Added Tax registration or the Preparation of Personal Income Tax Return.
CXC Global’s local expertise and knowledge of Latvian labour and tax laws, allows us to work closely with our clients, assist with Local Tax and Social Security Registration, VAT Registration, including a preparation of a personal income tax return at the end of the tax year.
Contracting in Latvia has some complexity. The taxation system in Latvia is multi layered and is not contractor friendly. Latvia is recognised for being a country with some of the best living standards in Eastern Europe. They has entered into Double Taxation Treaties with some countries and do not encourage contracting. For foreign national contract workers, contracting in Latvia, it would be wise to consult with CXC Global on the best way to structure, and how best to balance taxation.