If you earn rental income from a property in Latvia, you owe tax on it — whether you are a resident or a foreign owner. The good news is that Latvia offers a simplified flat-rate regime that many private landlords use. Here is what you need to know.
Important: this is general guidance, not individual tax advice. Tax rules change — always confirm current details with the State Revenue Service (VID, vid.gov.lv) or a qualified accountant.
The two main tax routes
- Simplified 10% regime (notified economic activity). You pay a flat 10% of the rent received, with no deduction of expenses except immovable property tax. You do not register a full business — you simply notify VID of the rental.
- General economic activity. You pay progressive personal income tax plus social contributions, but you can deduct expenses such as repairs and depreciation. This route makes sense when your costs are high.
Most private landlords choose the 10% regime because it is the simplest and most predictable.
How to register for the 10% regime
- You must notify VID within five business days of signing the rental agreement.
- The notification is filed electronically through the Electronic Declaration System (EDS), with a copy of the contract attached.
- Once a year (1 March to 1 June for the previous year), you file an annual income declaration.
Miss the deadline? If the rental is not declared on time, the 10% flat rate may not apply and higher progressive rates could be imposed. Filing within five days protects the reduced rate.
Points foreign owners should note
- Latvia-source income. Rental income from Latvian property is taxed in Latvia regardless of where you live.
- Property tax. Owners pay an annual immovable property tax, typically 0.2–0.6% of cadastral value — often a few hundred euros a year for a standard apartment.
- VAT threshold. If annual rental income exceeds €50,000, VAT registration may become mandatory. This rarely affects individual owners.
How different.lv keeps it simple
When you rent your property to us, you remain the owner and the taxpayer on your income. The difference is that there is one clear contract and payments arrive regularly by bank transfer — which makes your tax reporting far simpler and more predictable than juggling multiple tenants and irregular cash payments.
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