Working from Latvia as a Germany resident

At a glance

Rule coverage

What the rules say about Latvia

The rules below are the ones most likely to shape a stay in Latvia, in plain words and with the source behind each one. Your own report tells you which of them apply to you.

1. Significant issueTax residency

   183 days present in any 12-month period makes you a Latvian tax resident

   Latvia treats you as a tax resident if you are present 183 days or more during any 12-month period, this is one of two independent tests, not a hierarchy, meeting either one is enough on its own. The other is a declared place of residence, covered separately, and a third narrow test catches Latvian citizens employed abroad by a Latvia-registered employer. None of these are subordinate to the others.

2. Significant issuePersonal income tax

   Latvia has not had a flat income tax rate for years, the current bands are 25.5 percent and 33 percent

   Latvia's personal income tax is progressive: 25.5 percent on annual income up to EUR 105,300, and 33 percent on the portion above that, per VID's own rates page, current for the 2026 tax year. Any source still quoting a flat 20 percent or 23 percent, or the older three-band 20/23/31.4 percent structure, is stale, Latvia moved off a genuine flat rate back in 2018 and the bands have changed more than once since. A fixed non-taxable minimum applies on top, covered separately.

3. Significant issueSocial security

   Latvia has not signed the EU telework framework agreement, so teleworking here past 25 percent flips your social security with no opt-in escape

   Checked directly against Belgium's official signatory list for the multilateral Framework Agreement on cross-border telework (Article 16(1) of Regulation 883/2004), Belgium acts as the agreement's depositary state, Latvia does not appear. Both Baltic neighbours have moved past this: Lithuania signed, effective 1 May 2024, and Estonia signed, effective 1 February 2026. Without the framework agreement, the ordinary default in Regulation 883/2004 applies with no opt-in alternative: an employee teleworking from Latvia 25 percent or more of their working time for an employer in another EU or EEA state is normally subject to Latvian social security instead of the employer's country.

4. Significant issueMoving your company

   Deemed distributions catch far more than dividends, this is where the deferred tax system bites unexpectedly

   VID's own guidance lists what counts as a deemed or conditional profit distribution beyond an actual dividend, each one triggers CIT the same way a dividend does: non-business expenses unrelated to economic operations, bad debts deemed uncollectible, interest paid above arm's-length standards, loans to related parties, transfer pricing adjustments that diverge from market rates, employee benefits granted by a non-resident, and liquidation quota distributions on winding up. Representation and staff sustainability costs get a narrow exemption, up to 5 percent of the company's total gross wages for the prior year, but only if kept as a separate accounting record with supporting documents, once that cap is breached CIT applies monthly on the excess.

5. Significant issueImmigration and visa

   Past 90 days you need a long-stay visa or residence permit, tourist status runs out at day 90

   Latvia's Ministry of Foreign Affairs is explicit that once a stay exceeds 90 days in any 180-day period, a long-stay (D) visa or a residence permit is required, a short-stay Schengen visa does not extend to it. Long-stay visas for Latvia must go through a Latvian diplomatic mission directly, other Schengen states' consulates cannot issue one on Latvia's behalf. For a remote worker the natural long-stay route is the remote work visa covered separately below.

6. Needs checkingPermanent establishment risk

   A foreign company can create a taxable presence in Latvia without registering anything

   PwC confirms a non-resident has a permanent establishment in Latvia if it uses a fixed place for activities there, that place is used permanently or established for permanent use, and it is used for commercial activities, all three together. A PE also arises from a construction site or installation project, supervisory or consulting work tied to one, or providing services in Latvia through employees for more than 30 days within any six-month period, or through a dependent agent regularly exercising authority to conclude contracts on the company's behalf. Once triggered, the PE is taxed as if it were a Latvian resident company.

Tax treaty between Germany and Latvia