Head of Government Brigitte Haas and Prime Minister Evika Silina signed a double taxation agreement (DTA) between Liechtenstein and Latvia on Thursday, October 2, 2025, as part of the seventh meeting of the European Political Community (EPC) in Copenhagen.

The agreement regulates the elimination of double taxation in cross-border situations. It is based on the international standard of the OECD and takes into account the results of the OECD/G20 BEPS project (Base Erosion and Profit Shifting) to prevent tax avoidance and tax evasion in a cross-border context. At the same time, Liechtenstein's treaty practice and that of Latvia have been taken into account. The exchange of information is based on the international standard, with the automatic exchange of information continuing to be handled via the AEOI agreement between Liechtenstein and the EU. The agreement also contains administrative assistance for enforcement.

To promote cross-border investments, the DTA with Latvia does not provide for withholding tax on dividends, interest and royalties between legal entities. In addition, the DTA reduces the withholding tax to 10% (for dividends and interest) and 5% (for royalties). The DTA also regulates the treatment of asset structures, pension funds and charitable organizations under treaty law. In addition, transfer pricing issues can be discussed in an institutionalized framework with the partner state and legal certainty is increased, for example, by the possibility of mutual agreement procedures.

The agreement is another important step towards expanding Liechtenstein's DTA network. It increases legal certainty for investments and strengthens economic and political cooperation between Liechtenstein and Latvia.

The government has already approved a report and motion to parliament on the double taxation agreement (DTA) in the area of taxes on income and capital with Latvia, which is expected to be discussed by parliament in its November session.

The report and application can be obtained from the Government Chancellery or via www.rk.llv.li (reports and applications).