Latvian reader proposes adopting Poland's model for small-scale earnings

A reader of Latvijas Avīze, Jānis Buls, has shared thoughts on how Latvia's tax and business rules could be friendlier toward people trying to earn small additional income. He points to Poland as an example, where since 2018 a scheme called "unregistered activity" (działalność nierejestrowana) has allowed limited economic activity without formal business registration.

How Poland's system works

In Poland, a person can run small-scale economic activity without registering with the national business registry, provided certain conditions are met. Starting in 2026, the income limit is calculated quarterly — revenue must not exceed 225% of the national minimum monthly wage, which this year amounts to roughly 10,813.50 zlotys per quarter. If that threshold is exceeded, the person must register as a full business within seven days. Another condition is that the individual must not have run a registered business in the previous five years.

Under this regime, people are exempt from the mandatory social insurance contributions required of registered entrepreneurs, though the situation can differ when providing services under contracts legally treated as service agreements. Bookkeeping is also simplified — a basic sales log and issuing receipts on request suffice, while income must still be declared in the annual tax return.

The situation in Latvia

According to Latvia's State Revenue Service, economic activity must be registered once certain criteria are met — such as the regularity of transactions, income levels, or an activity's systematic nature aimed at generating payment. This requirement also applies to creative professions such as artists and musicians. Latvia has no general regime allowing people to earn income up to a set threshold on a recurring basis without registration.

In Buls' view, Poland's experience shows it is possible to create an intermediate step between someone merely testing a business idea and a fully registered entrepreneur, which could reduce administrative burden and give people more freedom to earn from hobbies and creative work.