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How can I reduce my withholding tax rate as a tax resident of a non-EEA country or Lithuania?

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The standard withholding tax rate is 5% for investors who are EU/EEA tax residents (excluding Latvia) and invest as private persons, and 20% for all other investors. If your country of tax residence has a double tax treaty (DTT) with Latvia, you may be eligible for a reduced withholding tax rate. Apart from several countries outside of the EEA, tax residents of Lithuania can also benefit from a reduced withholding tax rate.

 

To register your tax residence and apply a reduced withholding tax rate on your Mintos account, we are required to receive a tax resident certificate from you. Check with your local tax authorities to see how you can obtain a tax resident certificate in your country of tax residence.

 

Your tax resident certificate must meet the following requirements to be accepted:

  • It must contain your full name and tax identification number
  • It must confirm your tax residence for the current year
  • It should specify that it applies to income generated in Latvia

 

You can submit your tax resident certificate via your account. You will be notified via email once your tax resident certificate has been processed.

 

The reduced withholding tax will be applied from the moment Mintos has received and processed your tax resident certificate. If the tax resident certificate is provided later, but not more than 3 years after the date of receiving interest, you can request repayment from the issuer’s tax authorities (for example the Latvian tax authorities).

 

Unless stated otherwise, your tax resident certificate remains valid until the end of the specified calendar year. You will need to submit a new tax resident certificate to reduce your tax withholding rate in the next calendar year.

 

An additional form only needs to be provided when you generate more than €5000 income during one calendar year and from one issuer. If we see that an investor is approaching this limit, we will reach out to them on time to notify them about the next steps.

 

While the process of obtaining a tax resident certificate may differ depending on each country’s legislation, below you can find instructions on how such a document can be requested from tax authorities in selected countries. Please note that the information provided does not constitute tax, legal or other advice or consultation and is provided for information purposes only.

Learn more about tax withholding

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