News

The submission of the voluntary annual personal income tax return in Latvia on 1 March is approaching, giving Latvian residents the opportunity to recover overpaid personal income tax (PIT). If during you have worked, studied, received medical treatment, donated or made pension savings in 2025, submitting a return may result in a real refund deposited into your bank account.

The summer student employment program, implemented every year by the Latvian State Employment Agency (NVA), will one again offer employers the opportunity to attract motivated young people with state co-financing, while also contributing to the development of the future workforce. The acceptance of applications for implementing the student employment program in summer 2026 will begin from 23 February to 15 March.

The EU Pay Transparency Directive requires all EU Member States to implement new pay transparency laws by June 2026 aiming to promote fair pay through transparency before hiring, employee rights to pay information, objective pay structures and mandatory gender pay gap reporting. For businesses operating in the Baltics, the core rules will be similar, but the way Estonia, Latvia and Lithuania are implementing them differs in scope, pace and regulatory approach.

If you’ve ever heard clear laughter in the Numeri office followed by: “Together, we’ll make it work,” there’s a good chance it was Līga - our payroll team lead in Latvia - who inspires with her everyday ease, humor, openness and support. But behind that ease is a very solid foundation of focus, discipline and years of professional experience built up over time.

2026 has reshaped the tax landscape across the Baltics, but not in the same way everywhere. Some systems remain unchanged, others introduce structural changes and several measures apply gradually throughout the year. Taxes in Baltic States in 2026 is a regional tax overview prepared by the Numeri Group, bringing together the key tax rules in force across Estonia, Latvia and Lithuania in 2026.

The end of the year tends to slow things down. With holidays approaching and teams taking time off, our office hours will shift slightly over the coming weeks.

The Estonian Parliament adopted amendments to the Income Tax Act on 3 December 2025, which will be effective from 1 January 2026. According to these amendments, the tax rate of individual and corporate income tax will remain at 22%. Also, the general tax rate of individuals using entrepreneur account will not be increased.

The Estonian Parliament adopted amendments to the Motor Vehicle Tax Act on 12 November 2025, which retroactively grants an annual tax allowance of up to 100 euros per year for every child under 19 years old to the parent or guardian of that child, starting from the beginning of 2025, provided they are the owner or responsible user of at least one M1 or N1 category motor vehicle registered in the traffic register. The allowance will be received by parents with full custody of the child or by guardian individuals.

Expanding a business internationally has never been more accessible. Today, companies of all sizes, from startups to established SMEs, are taking advantage of global opportunities to reach new clients, reduce operational risks and unlock long-term growth. With the right strategy, entering a foreign market can increase revenue and strengthen a company’s global presence. However, successful international expansion requires a clear understanding of the legal, tax and employment frameworks in each target country. Company registration procedures, corporate tax rates, payroll regulations and labour laws vary widely. These differences influence how quickly a business can launch operations, what it will cost and what compliance obligations must be met.

To strengthen the transparency of the financial system and at the same time protect individuals whose data is included in the registers of actual owners - ultimate beneficial owners (UBOs) - the government has approved a draft law amending The Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing, in order to ensure that Latvian legislation complies with EU Directive (EU) 2024/1640, which sets out unified mechanisms for protecting the financial system against money laundering and terrorism financing.

Latvia has held on to its A- credit rating with a Stable Outlook, according to the latest update from Fitch Ratings on 7th November. This confirmation sends a clear message to investors, businesses and international partners: Latvia continues to be viewed as a solid, investment-grade market where financing conditions remain comparatively stable.

Please note that our office will be closed on November 18 in observance of the holiday. We'll resume work as usual on November 19.