Will the money be refunded? Changes have been introduced in Latvia for filing declarations to reclaim overpaid taxes 0 10

It is recommended to submit the declaration through the electronic declaration system (SÉD/EDS) of the State Revenue Service. However, it is also possible to do it in person at the offices of the SRS.

Innovations of 2026

As the SRS warns, due to changes in tax policy, the overpayment this year may be less or may not occur at all.

The reason: in 2025, Latvia abandoned the variable (forecasted) non-taxable minimum. Instead, the Ministry of Finance established a single fixed non-taxable minimum that does not change based on income level. In 2025, it was 510 euros per month, in 2026 it is 550 euros, and in 2027 it will increase to 570 euros.

This means: previously, throughout the year, there would be a difference in calculations, so after submitting the annual declaration, a refund would occur. But due to the fixed non-taxable minimum, the tax was calculated more accurately each month, and by the end of the year, some residents no longer had overpayments or underpayments.

"Since there may be no such difference this year, there is nothing to refund," explains the SRS.

At the same time, the amount of payments for justified expenses has increased from 120 euros to 153 euros per person. The total amount of justified expenses that can be declared for one person still amounts to 600 euros.

This change occurred due to the income tax rates for individuals (PIT) that were implemented in 2025. Latvia abandoned the rates of 20% (for incomes up to 20,004 euros per year) and 23% (for incomes from 20,004 to 78,100 euros per year), replacing them with a single rate of 25.5% (for residents with incomes up to 105,300 euros).

As the SRS explains, "anyone who paid PIT (for example, from wages and pensions) can reclaim 25.5% of justified expenses.

What else should be considered: all allowable expenses for a specific year (except for donations and gifts) can be included in the annual declaration, even if their total exceeds 600 euros. The portion exceeding €600 will be automatically carried over to the next three years.

Grandchildren and children can reclaim money for pensioners

Tax refunds can be obtained for other family members.

This may be important for pensioners who receive small pensions - as no PIT is paid on amounts up to 1,000 euros. Their relatives can reclaim money for them.

As the SRS explains, justified expenses can be claimed, in particular, for the following family members:

• parents and grandparents;

• children and grandchildren;

• spouses or registered partners;

• minor siblings, if they do not have working parents - until they reach adulthood or while continuing general, vocational, higher, or specialized education - but no longer than 24 years;

• siblings with disabilities of group 1 or 2;

• dependents;

• individuals under guardianship or custody.

Tax refunds for EACH family member for the year 2025 - also 25.5% of expenses from an amount not exceeding 600 euros.