Saeima supports simplified micro-enterprise tax regime for individuals

On Thursday, June 18, 2026, the Saeima passed in the first reading amendments to the Micro-Enterprise Tax Law aimed at significantly reducing bureaucratic hurdles for individuals who provide services to other private persons. The new regime targets people performing everyday services such as trainers, gardeners, private tutors, hairdressers, beauticians, or plumbers.

Simplified tax payment

Under the draft law, these service providers will be able to avoid registration with the State Revenue Service (VID) as economic operators and will not need to submit quarterly declarations. Instead, individuals will open a business income account at a bank. All subsequent information exchange, tax withholding, and payment to the state budget will occur automatically between the bank and the VID. The micro-enterprise tax rate for such taxpayers will be 10%.

Conditions and impact

To apply this solution, several conditions must be met: the taxpayer must have no employees, cannot simultaneously be a micro-enterprise taxpayer under the general regime, and may only provide services to individuals. Preliminary estimates suggest that around 1,000 taxpayers could use the new regime, generating an additional €2.5 million per year for state and municipal budgets.

The Saeima also conceptually supported related amendments to the Personal Income Tax Law and the Law on Taxes and Duties. The amendments are planned to take effect on January 1, 2027, but still require approval in two more readings in the Saeima.