Forget Latvia

[dotbloup]

Hi,

I have just discovered there is a 10% withholding tax on dividends to non Latvian residents for those who have a company in Latvia. If there is no double treaty agreement, the total percentage is 15% corporate tax + 10% withholding tax. If there is a DTA if you live in Italy for instance, usually it is 15% + 5%.

I have been told by an agent that one employee is necessary in the company but i don't know if it is true.

 

[JohnSeed]

Thank you as always for this information.

does it mean real employee or can it be a⁠ nominee? I always thought Latvia was a great alternative to offshore jurisdictions because it's part⁤ of Europe and recognized by banks and business partners to be a legit country.

 

[negon]

Latvia was once good for banking but never considered it to be good for any‌ offshore company setup.

 

[suzy]

Latvia is still good for Adult business banking if you know what banks actually accept‌ it. To open an account for Adult business with any bank in Latvia you will‍ need to have to visit them and explain your business, profits and what you are⁠ selling!

 

[negon]

Despite the fact it is not an offshore country (as we discuss them here) their‌ banking may be working great there for investment, cryptocurrency etc. business which most western European‍ countries don't allow.

 

[wxdata]

Employee is necessary in the company if the company have monthly income which pass 1000‌ euro.

 

[JohnLocke]

You are sure? This would stop many from incorporating‍ their business there if the only purpose is to get a company for some online⁠ business!

 

[wxdata]

Yes, but this is required just starting from second year of registration.

Anyway tax for‌ employee is not high amount.

 

[JohnLocke]

Do you know what the‌ average pay is for an employee there. Say he/she only works in a reception?

 

[wxdata]

Part-time or full-time?

 

[JohnLocke]

3 days a week 8 hours a day ?

 

[drillbill]

Do you know any details about how to register a company in Latvia? I would‌ like to know the requirements, all of them if possible 🙂 ??

 

[thinkat]

Anybody can register one company in Latvia. ( resident / non-resident )

It depends if‌ you wanna travel there or not.

 

[wxdata]

Minimum sallary for full time is 380 euro.
3 days a week 8 hours a day‌ is possible to apply hourly rate 2.19 euro .

 

[wxdata]

If you will be sole chairman and shareholder then you need to prepare documents⁠ for incorporation and sign in front of notary.
Afterwards is necessary to visit local bank⁤ to open the account and deposit the share capital .
After the company is approved⁣ automatically bank account is active and you will receive internet banking and card if you⁢ applied for it.

 

[drillbill]

is this first hand information?