Regulations for Working in Latvia

Overview

Latvia is increasingly becoming an attractive destination for flexible work models such as workations and short-term business trips. However, anyone who works temporarily in Latvia should be aware that certain legal requirements apply, even for shorter assignments. These include possible registration obligations for posted workers, compliance with labor law regulations, and issues related to remuneration, working hours, and social security. Even without a long-term stay, professional activity may trigger administrative duties. This overview outlines the key regulations for professional work in Latvia – practical and aligned with the current legal framework.

EU Posted Workers Directive

What are the requirements?

Foreign employers posting workers to Latvia must submit a posting notification before the assignment begins.

Required Documents

The notification must be submitted in writing and in Latvian and must include the following information:

Foreign employer (legal name, registration number, address, and names/contact details of authorized persons in the management bodies)
Personal data of posted workers (names, ID numbers)
Duration of the posting, including start and end of the total work/service period
Workplace in Latvia
Representative of the foreign employer in Latvia (name and contact details)
Company receiving the posted workers and the type of services justifying the posting
Work permit, if applicable
A1 certificate for social security

The documents must be retained for 2 years after the end of the posting. They should be available in the original language and with a Polish translation. Authorities may require a certified translation.

Penalties for violation

Sanctions depend on the type, frequency, and severity of the violation. In general, fines for violations range between EUR 70 and EUR 7,100 per case.

Failure to comply with the minimum wage is punishable by fines of EUR 430 to EUR 570 for foreign employers who are individuals.

If the foreign employer is a legal entity, fines range between EUR 850 and EUR 7,100.

Violations of employment conditions may generally result in fines of up to EUR 14,000.

Labor Law

Minimum Wage

As of January 2025, the gross minimum wage in Latvia is EUR 740 per month. For civil law-based contracts, the minimum wage has been EUR 22.80 PLN (approx. EUR 4.85) per working hour since January 2023.

Working Time

The maximum working time is 8 hours per day or 40 hours per week.

Important Hints

Non-compliance with the applicable labor law may result in financial liabilities, fines, or claims under local dismissal and working time regulations.

Social Security

For employees posted to Latvia from another EU country, EU Regulation 883/2004 on the coordination of social security systems applies:

A1 certificate provided: The worker remains covered by the social security system of their home country.‍
No A1 certificate: Latvian social security rules apply, and the foreign employer must act like a local Latvian employer.

Important Hints

Violations can lead to significant administrative obligations, back payments (with interest), audits, and substantial penalties. Reputational damage is also possible.

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Income Tax

Remote workers are not subject to income tax in Latvia if their presence does not exceed 183 days within a 12-month period.
If the 183-day threshold is exceeded, the foreign employer is generally responsible for registering with the Latvian tax authorities, maintaining shadow payroll records, and remitting taxes and social security contributions.

If income tax is due in Latvia, there are two options for payment:

The foreign employer registers as a taxpayer in Latvia (meaning they maintain a shadow payroll and become subject to withholding tax obligations)
The remote worker registers as a taxpayer themselves (in this case, the worker is responsible for reporting and paying tax on their income in Latvia, and the foreign employer has no withholding obligation)

Important Hints

The consequences of violations can vary depending on the situation but often include an immediate obligation to file a tax return in the host country, potentially leading to significant consequences for both the employees and the company.

Immigration & Visas

International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.

Important Hints

The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.

Permanent Establishment

Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.

Important Hints

The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.

Wichtige Hinweise

Important Hints