In May, important amendments to the law on "State Social Insurance" came into force in Latvia, reports the State Social Insurance Agency (SRS).
Let's take a look at what exactly has changed.
No More Forecast Required
The main innovation is the cancellation of the obligation for self-employed individuals to notify the tax authority in advance about their expected income.
Previously, self-employed residents were required to submit a special application to the State Revenue Service (SRS) once a year or quarterly. Now, this requirement has been completely removed from the law.
Importantly, as explained by the SRS, these amendments have retroactive effect and apply to the ENTIRE period starting from January 1, 2026.
The SRS also emphasizes that this concession applies to absolutely all self-employed individuals. This includes both micro-enterprise taxpayers and recipients of royalties (fees).
Benefits for Employees with Disabilities
The SRS also points out another important innovation that has retroactive effect from January 1, 2026. It concerns employers and is intended to encourage the hiring of people with disabilities.
Employers will no longer have to pay the minimum mandatory social contributions for employees with a third group disability if their salary is below the minimum wage.
This is a significant expansion of the benefit, as previously such an exemption applied exclusively to employees with first and second group disabilities, as well as to disabled children.
Pensions and Benefits — to Foreign Banks
A very important piece of news for those who have left or plan to leave Latvia. The SRS has received official permission to transfer Latvian pensions and benefits to accounts opened in payment institutions of other countries in the European Union or the United Kingdom.
Moreover, people residing in "third countries" — outside Latvia or the EU — will also be able to receive money in an account at a local bank or financial organization — as long as the payment can be credited in euros.
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