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Dividend tax in Latvia 2026
Most Latvian dividends arrive with 0% personal tax: profits earned from 2018 already bore corporate tax on distribution, and that settles the bill.
From 2026, companies owned solely by individuals can elect an alternative split — a reduced corporate rate plus just 6% withholding on the dividend.
At a glance
- top rate
- 25.5% (pre-2018 profits; low-tax-jurisdiction dividends)
- entry band
- 0% for exempt dividends
- tax year basis
- Withheld on distribution where taxable
- filing deadline
- Exempt dividends still count toward the EUR 200,000 surcharge test
- residency basis
- Residents: worldwide; foreign dividends exempt if taxed abroad
- regime flag
- Alternative model (2026): reduced corporate tax + 6% dividend withholding
Rates
How investment income is taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Dividends from post-2017 profits that bore Latvian (or equivalent foreign) corporate tax — European Economic Area (EEA) payers qualify automatically |
| 6% | Gross | Dividends under the new alternative model for solely individual-owned companies (2026) |
| 25.5% | Gross | Dividends from pre-2018 retained earnings and from low-tax jurisdictions |
| 25.5% | Gross | Interest — final withholding; EEA government and municipal bonds exempt |
| 25.5% | Gross | Private pension fund investment income |
Residency
Residency trigger
Exempt or not, dividends count toward the EUR 200,000 total-income line for the 3% surcharge — large shareholders still meet the taxman.
Non-resident treatment
Dividends to non-residents follow the same split: 0% on post-2017 company-taxed profits, 6% under the alternative model, 25.5% on old earnings.
Notes
- Income 'analogous to dividends' — sole-proprietorship distributions, cooperative payouts, partnership profit shares — follows the dividend rules.
- Interest on publicly traded instruments paid to non-residents is exempt; a 5% rate covers certain broker-intermediated private instruments for EEA residents.
- Rental income is taxed at the progressive earned-income rates, not the capital rate.
FAQ
Are dividends taxed in Latvia?
Mostly not at your level — 0% where the post-2017 profits bore corporate tax; old pre-2018 earnings and low-tax-jurisdiction dividends pay 25.5%.
What is the new 6% dividend model?
From 2026, companies owned entirely by individuals can opt for a reduced corporate rate on distributions paired with a 6% personal withholding — an alternative to the standard exempt-dividend route.
Figures: tax year 2026, compiled from public sources. Not tax advice.