How to register as self-employed in Latvia

What to prepare

• Access to EDS with internet banking, an eID card or an eSignature.
• The start date and the kind of activity.
• Contact details and the bank account where you will receive income.

Steps

1. Step 1

   Decide whether sole work is enough

   A conductor of economic activity works on their own account and pays taxes themselves. If you plan to employ people or take on larger contracts, consider an SIA.

2. Step 2

   Log in to EDS

   Open the VID electronic declaration system and sign in with internet banking, an eID card or an eSignature.

3. Step 3

   Submit the registration application

   In the EDS section on taxpayer registration, find the application to register as a conductor of economic activity. Enter the start and the kind of activity and submit it. Check the exact form name in EDS itself, because VID may change it.

4. Step 4

   Choose a tax regime

   Usually income is subject to personal income tax and you pay social contributions yourself. You can also choose the micro enterprise tax if you meet its conditions. Compare the regimes in the calculator before you decide.

5. Step 5

   Sort out social contributions

   If you pay social contributions for yourself, for a quarter with contributions you file the self-employed report in EDS by the 17th of the next month and pay by the 23rd.

6. Step 6

   Keep records from day one

   Record income and expenses under Cabinet Regulation No. 322, and keep receipts and invoices.

7. Step 7

   Note the deadlines

   The annual income declaration with the D3 appendix for the previous year is filed in EDS from 1 March to 1 June.

What does it cost and how long does it take?

VID sets the fees and the processing time. Check them in EDS or on vid.gov.lv before you apply.

Check fees, amounts and deadlines at the official source before you file, because they change.

After registration

• The minimum personal income tax of 50 euro a year is not due in the first registration year and the next.
• Komandcentrs records income and expenses, calculates social contributions and income tax, and prepares the contributions report and the D3 appendix. Filing in EDS stays in your hands.

See the tax calendarCompare tax regimes in the calculator

Official sources

VID electronic declaration system (EDS)

Planning a company instead of sole work? How to found an SIA