Working in Latvia as a French National: Right to Work, Pay, Tax, Contributions and the Economy

As a citizen of the European Union, a French national takes up employment or self-employment in Latvia without a work permit or visa. The formalities relate to settling in: the registration certificate for a permanent stay of more than 90 days and the declaration of residence on the latvija.gov.lv portal or at the municipality (PMLP, latvija.gov.lv). The page on living in Latvia details these steps.

The employer registers its employees and pays contributions to the Latvian tax service (VID); employees are covered for pensions, unemployment, invalidity, sickness and maternity (CLEISS).

The minimum wage is close to €780 gross per month (Eurostat, CLEISS), well below the French level. It also serves as a reference for contributions: the minimum base is €2,340 per quarter, i.e. €9,360 per year, three times the monthly minimum wage per quarter; the annual ceiling is €105,300 (CLEISS).

• Salary levels: the Latvian statistics office publishes average wages by sector and by region, which are worth consulting before accepting an offer.
• Employment contract: Latvian labour law governs working time, leave and notice; the Latvian labour inspectorate publishes the rules.
• Sickness benefits: the employer pays days 2 and 3 at no less than 75% of the average wage and days 4 to 10 at no less than 80%, then the social security agency pays 80% up to €137.64 per day, for 26 weeks (CLEISS).

CLEISS publishes the rates: the total is 34.09% of gross salary, of which 23.59% is borne by the employer and 10.50% by the employee. The breakdown by risk is as follows.

• Pensions: 23.91%.
• Unemployment: 1.60%, not due from employees who have reached the statutory retirement age.
• Accidents at work and occupational diseases: 0.66%.
• Invalidity: 2.29%, not due after the statutory retirement age.
• Sickness and maternity cash benefits: 3.47%.
• Healthcare: 1%.
• Parental contribution: 1.16%.

Above the ceiling of €105,300 per year, a solidarity tax of 25% applies, of which 1% for health, 14% for pensions and 10% for income tax (CLEISS). The detail of the protection obtained in exchange is set out on the page on the healthcare system in Latvia.

The Latvian Ministry of Finance publishes the allowances each year: a fixed monthly tax-free minimum for employees, applied by the employer who holds the tax book, a deduction per dependant and a higher minimum for retirees. The tax rates and brackets were changed by several reforms; they can be read on the website of the tax service (VID) and the Ministry of Finance.

France and Latvia signed a convention against double taxation in Paris on 14 April 1997, which entered into force on 1 May 2001 (impots.gouv.fr, the French tax authority’s website). An employee who settles in Latvia in principle becomes a tax resident there and declares their local income; income that stays in France follows the convention’s rules, to be checked on impots.gouv.fr or with individual advice.

An employee posted by a French employer stays affiliated to the French scheme during the assignment. The A1 form proves it, for 24 months at most, with no registration with the host country’s social security (europa.eu). See posted worker or expatriate and the glossary entry on the A1 form.

An employee on a local contract comes under the Latvian scheme; they can top this up by joining the Caisse des Français de l’Étranger (CFE, the voluntary social security fund for French nationals abroad), which spares them waiting periods on returning to France (ameli.fr, the website of the French Assurance Maladie, the national health insurance).

A self-employed person pays contributions at the total rate of 31.07% (pensions 23.91%, invalidity 1.68%, sickness-maternity cash benefits 3.32%, healthcare 1%, parental contribution 1.16%), with no unemployment insurance or accident-at-work cover; they choose their base between €9,360 and €105,300 per year, and only the pension contribution is due, at 10% of actual income, if their monthly income is below the minimum wage (CLEISS). See also insurance for digital nomads.

Cross-border remote work by an employee can stay attached to their employer’s scheme if the European framework agreement applies: less than 50% of working time, a single employer, an A1 certificate of three years at most. The CLEISS page consulted does not list Latvia among the parties; its status should be checked before planning such an arrangement.

According to the French Treasury (Direction générale du Trésor), the Latvian economy has seen moderate growth after a period of contraction and stagnation, supported by investment, the manufacturing sector and construction.

The stock of foreign direct investment is concentrated in specialised, scientific and technical activities (24% of the stock), finance and insurance, manufacturing, trade and real estate (Treasury). Exports are driven by machinery and electrical and electronic equipment and by the timber sector. For a French national, opportunities are concentrated in Riga in business services, finance, industry and logistics; English is enough in many international companies, while Latvian opens up more positions. The “Economic indicators” block on this page tracks growth, inflation, unemployment and the exchange rate continuously.