Buy, register or acquire a new or finished company with the help of Confidus Solutions. We provide full business and legal support when starting a new business or purchasing a finished business. Our areas of expertise include commercial law, mergers and acquisitions, contract law, tort law, intellectual property law, tax law, accounting and other business-related services. For more than 10 years, Confidus Solutions has brought together business and legal experts dealing with acquisitions and company registration in more than 150 countries.
The Latvian tax system is influenced by both Latvian legislation and European Union requirements. It can be called average because each taxpayer contributes an average of 30% of their income to the budget. In addition, Latvia's diverse system of tax rates, tax breaks and allowances allows each taxpayer to choose the optimal sector for their activity and wealth management. The Republic of Latvia has the lowest effective (average) tax rate in the European Union. There are several areas of trade with individual tax breaks - payments that are 80% to 100% lower: for example, Liepāja and Rēzekne have special economic zones, and the free ports of Riga and Ventspils can provide tax breaks.
The tax principles are laid down in the Taxes and Duties Act. Taxes are administered by the State Revenue Service (SRS) and are divided into direct and indirect taxes. Indirect taxes are taxes that are not deducted directly from income and are levied on goods and services. Direct taxes, in turn, are taxes levied on all taxable income of individuals and companies.
corporate tax Corporate income tax is the taxable income earned by a taxpayer during a taxable period. The tax base is the legally adjusted financial income of the corporation. The adjustments are made mainly to ensure that revenue exceeds expenditure on which the tax is not levied (e.g. expenditure not directly related to economic activity) or to increase revenue by a certain amount, if appropriate reduce if the law provides for tax relief.
Corporate taxpayers are:
resident or domestic companies engaged in economic activity, organizations and institutions financed from the state budget or municipal budgets and generating income from economic activity; non-resident or foreign companies, business entities, individuals and other persons; permanent representative offices of non-resident companies whose income tax rate is 20%. Individual companies pay income tax, and the tax rate ranges from 20% to 31.4%, depending on the level of income.
income tax Personal income tax is one of the most stable sources of income that adds funds to municipal budgets. Personal income taxpayers are self-employed individuals or businesses that are registered as taxpayers, including farms and fisheries. It is intended to return income tax to taxpayers with eligible expenses for education and medical services.
Personal income tax rates vary between 20% and 31.4% depending on income. It should also be noted that the tax is not levied on all income. Instead, some items are deducted from total income before tax is calculated:
Tax-free minimum amount Deductions for legal guardians of specific persons (e.g. children) Deductions for people with disabilities other deductions
The Schengen Area is a group of 26 European countries that have abolished passport and immigration controls at their shared borders. The Schengen area consists of twenty-two member states of the European Union (EU) and four member states of the European Free Trade Association (EFTA). It functions almost as a single country for international travel purposes, with its own common visa policy covering things like short-term visits and some types of work visas.
The Schengen Area was created on the basis of the Schengen Agreement (named after the city in Luxembourg where it was signed) and led to the creation of the borderless area of Europe in 1995. The agreement was signed on June 14, 1985 by five of the then ten member states of the European Economic Community. She proposed the gradual abolition of border controls at the common borders. Proposed measures included reduced-speed vehicle checks, allowing vehicles to cross borders without stopping, giving residents in border areas the freedom to cross borders away from fixed checkpoints, and harmonizing visa policies.
In 1990, the agreement was supplemented by the Schengen Agreement, which provided for the abolition of internal border controls and a common visa policy. The Schengen area functions very much like a single country for international travel purposes, with external border controls for travelers entering and exiting the area and common visas, but no internal border controls.
Participants of the Schengen area The Schengen Area currently consists of:
Austria Belgium Czech Republic Denmark Estonia Finland France Greece Hungary Iceland Italy Latvia Liechtenstein Lithuania Luxembourg Malta Netherlands Norway Poland Portugal Slovakia Slovenia Spain Sweden Switzerland A residence permit in one schengen country allow the holder to travel freely in any other Schengen country, without the need for any additional visas or registration.
A residence permit in Latvia (Uzturēšanās atļauja in Latvian) is a document (ultimately a physical residence card), which provides a foreigner with the right to reside (live, work, study or do business) in the Republic of Latvia for a definite or indefinite period depending upon the type of permit issued.
A residence permit makes your life much easier if you want to spend longer than 90 days in Latvia as well as making your travel to other Schengen countries (members of the Schengen Area) easier, since any person holding a residence permit in one Schengen country does not require any further visas or documentation to visit another Schengen state for the purposes of business or tourism. According to statistics from the State Land Service, since the regulations regarding the granting of residence permits based on the acquisition of real estate came into force, almost 500 million Lats have been invested in Latvia. According to reports from the Office of Citizenship and Migration Affairs, only 3.4% of applications based on real estate were denied, and all of these were due to the provision of false information during the application process or for other exclusions which are listed in the official regulations which meant that the investor did not originally qualify to apply.
For many, the biggest advantage of the residence permit in Latvia, is that you are entitled to enter other Schengen countries without any visas or other formal registration, which makes it trouble free for you to oversee your business in Europe as well as to travel without ever needing to think about preparing documents and visiting an embassy.
However, there are other advantages as well:
The opportunity to invite relatives for visa purposes, up to and including second degree relatives. A simplified procedure for receiving visas for a number of countries outside the Schengen zone. (USA, Canada, New Zealand e.t.c.) Automatic provision of a residence permit for your spouse and underage children. The right to receive discounted or free education within the European Union. New commercial opportunities within the European Union. The holder of a Latvian residence permit is also entitled to social privileges, such as medical treatment, maternity benefit, unemployment benefit, etc. The holder of a Latvian residence permit is entitled to almost all of the rights normally granted to citizens of Latvia, except the right to vote and to participate in elections and to hold positions in governmental institutions and other state authorities. The opportunity to receive a driver’s license in Latvia.
Cyprus is an island country in the eastern Mediterranean. It is best known for its sunny beaches and stunning mountain ranges. Most of Cyprus' income comes from tourism, the export of goods and the sale of real estate. The main languages in Cyprus are Greek and Turkish. English is spoken by most residents.
Establishing a company usually takes about 5 days The minimum share capital is EUR 1000 and usually an authorized capital of EUR 5000 Maintaining tax residency in Cyprus requires a local director of the company and board meetings must be held within Cyprus. The secretary must be or become a resident of Cyprus in order to remain a resident of Cyprus for tax purposes Information about the tax system Cyprus' corporate tax rate is 10%, one of the lowest corporate taxes in the European Union. The following activities are not taxable in Cyprus: Profits from the sale of listed securities. Receiving dividends for a Cyprus company. Interest that does not derive from the ordinary course of business or is not directly related to the main activity of the company. Cyprus has double tax treaties with more than 40 countries. For more information on the Cyprus tax system or related topics, please contact us.
There is no annual fee payable to the government to maintain a company. Only filing of annual returns is required according to the following rules:
a company incorporated before July 1 must file the annual accounts for the previous year with the tax authorities by December 31 of the following year. a company incorporated after July 1 must file the annual accounts for the previous years before December 31 with the tax authorities two years later.