The new agreement aligns with the latest international standards, reflecting the OECD/G20 Base Erosion and Profit Shifting (BEPS) recommendations.
Latvia and Liechtenstein signed an income and capital tax treaty on the sidelines of the seventh summit of the European Political Community in Copenhagen on 2 October 2025.
The new agreement aligns with the latest international standards, reflecting the OECD/G20 Base Erosion and Profit Shifting (BEPS) recommendations.
The treaty aims to eliminate double taxation on cross-border transactions and strengthen cooperation on tax transparency and compliance. It provides for the exchange of tax information in accordance with international standards, including automatic exchange mechanisms under Liechtenstein’s agreement with the EU.
Key provisions include the elimination of withholding tax on dividends, interest, and royalties paid between legal entities of the two countries. In other cases, the treaty limits withholding tax rates to 10% for dividends and interest, and 5% for royalties.
It will enter into force once both countries exchange their instruments of ratification.
