Filing a declaration in EDS if you receive more than €10,000 from a relative or more than €1,425 from a friend per year

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Latvian law requires individuals to declare money received as gifts or transfers from private persons. The State Revenue Service (VID) reminds that more than €10,000 per year from relatives and more than €1,425 from friends must be declared in the annual income declaration in the Electronic Declaration System (EDS). In 2023, over 15,000 undeclared cases were reported.

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Main requirements and step-by-step guide

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Steps:

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1. Log in to EDS (https://eds.vid.gov.lv).
2. Open the annual income declaration form.
3. Report the amount received from relatives or friends.
4. Attach supporting documents (bank statements, agreements).
5. Submit before June 1 (or July 1 via an accountant).

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Examples

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• If you receive €12,000 from your father, you must declare €2,000 exceeding the threshold.
• If a friend gives you €2,000, tax applies to €575.
  Legal basis: Personal Income Tax Law (https://likumi.lv).

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Advantages and risks

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Advantages:

• Compliance with the law avoids penalties.
• Transparent finances are useful for banks and residence permits.

Risks:

• Penalties up to €2,000.
• Tax audits and additional charges.
• Interest for late payment.

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FAQ

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1. Do I need to pay tax on €10,000 from relatives?
   No, only on the amount above this limit.
2. Who qualifies as a relative?
   Spouse, parents, children, siblings.
3. Should cash gifts be declared?
   Yes, if they exceed the threshold.
4. What tax rate applies?
   20% on the excess.
5. Can I extend the deadline?
   Yes, if filing through an accountant.

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If you received large sums from relatives or friends, file your declaration on time to avoid penalties. For assistance, contact LexFinance: lexfinance.lv | +37129515251