Insights

As of 01.01.2026, amendments to the Law on Taxes and Duties will come into force. Their purpose is to simplify transfer pricing documentation requirements and reduce the administrative burden on taxpayers. The amendments relate to transactions conducted from the reporting year 2025 onwards.

A financial expert from Grant Thornton Baltic analyses the financial situation of airBaltic, the potential for state support and the airline’s role in the Latvian economy, including its impact on tourism exports and the development of Riga Airport.

As of 01.01.2026, amendments to the Law on Taxes and Duties will come into force. Their purpose is to simplify transfer pricing documentation requirements and reduce the administrative burden on taxpayers. The amendments relate to transactions conducted from the reporting year 2025 onwards.

From 2026, Latvian company owners may choose between two dividend distribution models: either continue applying the existing 20% corporate income tax (CIT) regime or opt for a more attractive split-tax regime on distributed profits — particularly favourable for foreign investors — consisting of 15% CIT and 6% personal income tax (PIT).

As a long-standing independent partner of the Latvian Music Recording Awards “Zelta Mikrofons”, Grant Thornton provides professional and confidential vote verification while reinforcing transparency, trust, and its commitment to corporate social responsibility in Latvia.

What are the largest audit and financial consulting companies in Latvia? We have analyzed the audit market and compiled a ranking of the top audit firms and financial consultants in the industry. A TOP 10 list of companies has been created, along with an overview of industry trends. This material is useful for companies seeking potential partners—auditors and financial consultants in Latvia.

A practical overview for companies investing in shares, bonds, and other financial instruments, providing a detailed explanation of the accounting for financial instruments and securities in accordance with Latvian regulations and international IFRS standards. It covers the classification of financial instruments, fair value measurement, impairment, disclosure requirements in the annual report, as well as the accounting of long-term and short-term financial investments.

What are the largest audit and financial consulting companies in Latvia? We have analyzed the audit market and compiled a ranking of the top audit firms and financial consultants in the industry. A TOP 10 list of companies has been created, along with an overview of industry trends. This material is useful for companies seeking potential partners—auditors and financial consultants in Latvia.

In 2026, significant tax changes come into effect across the Baltic States. This overview highlights the main updates in Latvia, Lithuania and Estonia – from income tax and VAT to social contributions and excise duties – helping businesses plan their tax obligations effectively.

Discover the Upcoming Tax Changes in Latvia for 2026 and Be Ready for the Year Ahead!

In an effort to provide clarity to affected entities, the European Council (EC) has accelerated the approval process for the portion of the Omnibus impacting the reporting timeline - referred to as the ‘stop-the-clock’ directive.

Grant Thornton Baltic advised Eco Baltia on acquisition of EKO OSTA

Key Tax changes in Latvia

Key Tax rates in Latvia

Tax changes from June 1, 2023

Tax changes 2023