As a regulated platform, we are required to comply with governing regulations and withhold taxes on interest income earned by a private individual. The tax rate differs from country to country.
Default tax rates:
Latvian investors are 25.5%
Lithuanian investors can be reduced to 0% if they submit a tax residence certificate (form FR0254) acquired from VMI
Investors from EU/EEA countries are 5% (since November 2022)
All other investors are 25.5%. This rate can be reduced (usually to 2.5%-10%) if your country of tax residence has a double taxation agreement (DTA) with Latvia.
How to qualify for a reduced tax rate
To qualify for a reduced tax rate, you must upload the following two documents in your account's "Verification" section.
A Tax Residency Certificate issued by your country's tax authority.
The Residence Tax Relief Application. You can download this form from our platform. It must be signed (by hand or electronically), and the year must match your tax certificate.
Important notes:
Please upload these documents at the start of each year, or as soon as you receive them.
The reduced rate is not retroactive. It will be applied only after your documents are successfully verified.
For specific tax advice, please consult your local tax authority, as we cannot provide tax guidance.
Your tax statement
At the beginning of each year, you can download an account statement from your "My balance" page, which will detail the tax paid in the previous year. This statement can then be presented to your tax authority to assist with settling any remaining tax obligations in your country.
Please read our blogs:
https://debitum.investments/blog/withholding-tax-reduced-to-5-for-eu-and-eea-tax-residents/
https://debitum.investments/blog/where-i-can-get-a-tax-residency-certificate/