Latvia and San Marino have initialled their first bilateral income tax treaty on 14 May 2026, establishing a framework to prevent double taxation and fiscal evasion while protecting investor interests between the two nations. The agreement must be formally signed and ratified before entering into force.
Officials from Latvia and San Marino have initialled an income tax treaty following concluded negotiations, which was initialled on 14 May 2026. It requires formal signature and ratification to become effective. The development was confirmed by Latvia’s Ministry of Finance.
The treaty aims to provide a comprehensive framework governing taxation of business income, capital, and passive earnings—including dividends, interest, commissions, and royalties—between the two countries. It establishes maximum tax rates applicable to these income categories in each jurisdiction.
The treaty addresses four principal concerns: eliminating instances of double taxation, combating fiscal evasion, allocating taxing authority appropriately, and preventing discriminatory treatment of taxpayers. A key objective is furnishing investors from each state with a predictable and stable tax environment when operating in the other’s territory.
The treaty must be signed and ratified before entering into force.
