What is the withholding tax rate on my income?

The standard withholding tax (WHT) rate in Latvia is 20% for private individuals, but for tax residents of another country of the European Economic Area (EEA – consisting of member states of the European Union and Iceland, Liechtenstein, and Norway) the withholding tax rate is 5%.

If you are both a resident and citizen of the EEA, the tax rate of 5% is applied to you automatically. However, if you are a resident but are not a citizen of the EEA, it is necessary to submit additional documentation that proves your tax residence to apply the lower rate of 5% – please get in touch with our support team if you would like to do so.

Many countries have also entered tax treaties – these are bilateral agreements to prevent double taxation (and non-taxation) of payments between those countries (DTTs). Typically, DTTs provide an option to apply a reduced WHT rate compared to the standard WHT rate of 20%. Here you can see the summary of countries with which Latvia has entered into a DTT, as well as the respective tax rates applicable to each country. To apply the rate in line with the DTT between Latvia and your tax residence country, you must submit a valid tax residence certificate to TWINO by uploading it on the section “My profile” of the investment platform.

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