Withholding tax to be lowered to 5% for EU and EEA tax residents

Reduced withholding tax is now live for EU and EEA tax residents

To benefit from the reduced tax rate (5%) for EU/EEA tax residents, make sure to review and confirm your tax details. Once you do, the new tax rate will be applied automatically.

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Latvian parliament has passed a law that reduces withholding tax requirements for private individuals who are tax residents of EU and EEA countries from 20% to 5%. What’s more, the law also simplifies the taxation experience, as investors will only need to confirm their tax residence once, and no certificates or other documentation will be needed.1 The law change will be effective from 14 November 2022.

We’re working on implementing the changes on Mintos. We expect development to complete by the end of November. Once the changes are ready, you’ll need to review and confirm your tax details to benefit from the reduced tax rate. We’ll let you know when the reduced rate is live.

This is a big win for investors. We’ve been working together with the local financial institution trade association and other stakeholders for 2 years to affect a law change, and we’re very happy to see that our combined efforts have finally paid off!

The law change doesn’t apply to investors who are not tax residents of EU or EEA countries. It also doesn’t apply to legal entities, which are not subject to tax withholding.

1 If you’re a tax resident of a country with less than 5% withholding tax under the double taxation agreement, you can still benefit from the lower rate by submitting a tax resident certificate. Learn more


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