Freelancing in Latvia has a friendly secret: you can start almost tomorrow. There is no minimum capital, registration is free and the whole process runs online. Plenty of freelancers work from Riga cafés for a reason.
The hard part is choosing the regime, because the cheapest one on paper can leave you with a thin pension. Here is the picture for 2026.
How do you register as self-employed in Latvia?
You register with the State Revenue Service (Valsts ieņēmumu dienests, VID) before your first invoice. It is free.
- Obtain your personal code and declare your address (see the Latvian personal code).
- Log in to the EDS (eds.vid.gov.lv) with an accepted means of identification; see digital ID in Latvia.
- Create a new document, the taxpayer registration form for natural persons, with your activity (NACE 2.1 code) and your regime.
- If you work elsewhere than at your declared address, register that place with the VID as a structural unit. EURES notes that the owner's consent is needed.
- Declare your business bank accounts, in Latvia and abroad.
For a regulated activity such as alcohol, tobacco or catering, you need a licence or prior registration first. To stop, ask for deregistration in the EDS within 10 days of your decision and file your last returns.
Which regime should you pick when self-employed in Latvia?
Three options.
The general regime. You pay personal income tax on profit (receipts minus expenses) at 25.5% up to 105,300 euros a year, and social contributions of 31.07% in 2026 on at least 780 euros a month once your monthly income reaches 780 euros, with an extra 10% for pension on the part above 780 euros. Under 780 euros a month you pay only 10% pension on actual income. Old-age pensioners pay a reduced 29.36%. You file an annual return from 1 March to 1 June.
The micro-enterprise tax (mikrouzņēmumu nodoklis). One tax of 25% of turnover in 2026, replacing income tax and contributions, while your expected turnover stays under the VAT registration threshold (50,000 euros). If there is no turnover, or the tax comes to less than 50 euros, you pay 50 euros for the year. It is requested when you register, or before 15 December for the next year.
The reduced patent. A fixed 17 euros a year (or 9 euros for six months) for old-age pensioners or people with a group I or II disability, who employ no one, are not salaried and have receipts up to 3,000 euros a year, in six listed fields such as crafts, floristry or home care.
Which regime suits your income and your plans? Moovy can run the comparison on your numbers, show the pension effect and prepare questions for an accountant. The VID and a licensed accountant make the formal calls.
Is the micro-enterprise tax a good deal in Latvia?
Not always. It is 25% of turnover, with no deduction of your costs, so it favours low-expense work like consulting. And your pension depends on it: 80% of the tax goes to your social protection, and your insured income is derived from that share rather than from what you actually earn. On a modest turnover, that insured income stays low, and so do your future pension and your sickness benefits. Ask the VSAA, the social insurance agency, what your contributions would give you before you choose.
The regime is also tied to VAT: it is meant for businesses that stay under the VAT threshold, and registering for VAT normally takes you out of it, except under the special procedure of article 139.2 of the VAT law, open to micro-enterprises since 1 July 2025.
When must you register for VAT in Latvia?
The standard VAT (PVN) rate is 21%, with reduced rates of 12% and 5% for certain goods and services. Registration is compulsory:
- if your sales over the last 12 months exceed 50,000 euros;
- if you supply services to customers in other EU countries, even below 50,000 euros;
- if you buy services from providers not established in Latvia;
- if your EU goods purchases exceed 10,000 euros a year.
A single service to a business in another EU country can be enough. Do this check before you take foreign clients.
What are the filing dates?
- Social contributions: report in the EDS by 17 January, 17 April, 17 July and 17 October, with payment on the 23rd of the same month.
- Micro-enterprise tax: declaration by 15 January, 15 April, 15 July and 15 October, payment by the 23rd of the same month (VID).
- Annual return: 1 March to 1 June under the general regime; see income tax in Latvia.
You can use simple bookkeeping if last year's turnover did not exceed 300,000 euros.
When is an SIA better than self-employment?
The SIA (sabiedrība ar ierobežotu atbildību) is a limited liability company registered with the Register of Enterprises, with capital of at least 2,800 euros (Commercial Law, article 185). A lower capital is possible if the founders and members are at most five individuals who all sit on the board, but the company must then put at least 25% of each year's profit into a reserve before paying dividends (article 185.1).
Profit is taxed only when distributed: 20% corporate income tax on distributed and deemed distributed profit, with the taxable amount divided by 0.8, and 0% on reinvested profit (VID). From 2026, dividends paid out under the alternative 15% corporate tax rate carry 6% personal income tax for an individual shareholder (Ministry of Finance); ask an accountant which companies can use it. The Register of Enterprises handles simple cases in one to three working days, and its state fee depends on the type of registration. Salary contributions are 34.09% in total.
Beware of deemed distributions: spending that is not linked to the business, loans to related persons and off-market prices with related parties can be taxed like dividends. An outside accountant must hold a VID licence. You can keep the books yourself only if you are both the sole shareholder and the sole board member (Accounting Law, article 35).
What mistakes should you avoid?
- Invoicing before registering.
- Choosing micro-enterprise without calculating the pension effect.
- Ignoring VAT with EU clients.
- Using an unlicensed external accountant.
For the employee route, see working in Latvia.
Is self-employed in Latvia a good choice for foreigners?
It can be. Registration is free, the process is online and there is no minimum capital, so the barrier to start is low. The barriers are practical: you need your personal code and an accepted electronic identity to log in to the EDS, and you must understand the regime choice. Self-employed in Latvia also means your health and pension rights depend on your contributions, so look at the pension effect before choosing the cheapest tax. A foreigner who is an EU citizen has the same right to set up a business as a Latvian.
What happens with a first invoice when you are self-employed in Latvia?
Before you issue it, you must be registered, with your regime chosen. Then keep records: simple bookkeeping is allowed if last year's turnover was under 300,000 euros, but double entry stays possible. Declare your bank accounts, including foreign ones. If your client is in another EU country, check VAT registration before the invoice leaves. File social contribution reports in the EDS by the 17th of January, April, July and October and pay by the 23rd.
Can you work from home as self-employed in Latvia?
Yes, but your activity address matters. If you work somewhere other than your declared home, you register the premises, with the owner's consent, as EURES notes. If you work from home, make sure your landlord's lease does not forbid it.
Which activities need a licence?
Regulated activities such as alcohol, tobacco and catering need a licence or prior registration with the competent authority before you start. Professions regulated by law, such as medicine or teaching, also need a recognition of qualifications by the Academic Information Centre first (240 euros). See working in Latvia.
Where do you get help as self-employed in Latvia?
The VID answers by telephone on +371 67120000 and explains its rules on its English pages, though the Latvian pages are often more up to date. For bookkeeping, an external accountant must hold a VID licence, so ask to see it. The Register of Enterprises publishes the forms and guidance for creating an SIA on its portal.
Before you pick a regime, have a Latvian accountant or tax adviser check your own figures. Take your turnover forecast, your list of expected expenses and your pension goals to the first meeting: the right choice depends on all three.