What Latvian Companies Must Know When Appointing Foreign Directors

Residence and Work Permits

• EU/EEA/Swiss citizens: No work permit needed, but residence registration is required for stays over 90 days.
• Non-EU citizens: Will likely need a temporary residence permit, especially if they will actively operate in Latvia.
• Oceans Baltics can assist with legal and immigration processes for board-level appointments.

Tax and Social Contributions

• Personal Income Tax (PIT): Residents are taxed on global income. Non-residents are taxed only on Latvian-sourced income (e.g., director fees).
• Social Security: Required if the board member works in Latvia—unless exempt via an A1 certificate.

Permanent Establishment Risk

Be cautious: regular presence or activity might create a taxable presence for a foreign parent company. At Oceans Baltics, we provide expert support in accounting, payroll, and tax compliance to mitigate risks and ensure transparency.

Practical Day-to-Day Matters

• Language Barriers: Latvian is required for official documents. Reliable translation and legal interpretation are key.
• Digital Signatures: A Latvian eSignature or eIDAS-compliant signature is essential for efficiency.
• Banking and Representation: Foreign board members can raise flags during bank KYC processes—ensure your documents are in order.
• Oceans Baltics helps businesses handle director onboarding, signatory rights, and banking documentation smoothly.

The Bottom Line

Appointing a foreign national to your board can be a strategic asset—but only with the right preparation.

• Let us at Oceans Baltics guide you through accounting, payroll, tax and legal matters.
• We make cross-border business simple and compliant.

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