For US citizens and green card holders in Latvia

US Taxes for Americans Living in Latvia

US citizens and green card holders who live in Latvia still file a US return every year, report Latvian accounts, and choose how to avoid double tax. This guide covers the treaty, social security, FBAR and catching up on missed years.

US returnFBARForm 8938Treaty: yesTotalization: no

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Quick answer

Do US citizens living in Latvia have to file US taxes?

Yes. The US taxes citizens and green card holders on worldwide income wherever they live. Living in Latvia gives an automatic extension to June 15, accounts there above US$10,000 in total need an FBAR, and the foreign tax credit or the foreign earned income exclusion (US$132,900 for 2026) usually prevents double tax. The US has an income tax treaty with Latvia, and there is no social security agreement.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

Yearly US return: Yes, on worldwide income; due June 15 automatically when living abroad
US tax treaty with Latvia: Yes, per the IRS list (saving clause applies to US citizens)
Social security agreement: No, per the SSA list
Accounts in Latvia: FBAR above US$10,000 in total; Form 8938 above higher limits
Behind on filing: Streamlined: 3 years of returns, 6 years of FBARs

The yearly US return for Americans in Latvia

Living in Latvia changes where you pay most of your tax, not whether you file with the IRS. US citizens and green card holders report worldwide income every year (IRS Pub 54).

Date	What happens
April 15	Normal due date; any US tax owed is due now, and interest runs from here
June 15	Automatic extended date for a US citizen or resident living and working outside the US on April 15
October 15	Further extension if requested in time

Amounts earned in euros are reported in US dollars.

Reporting Latvian bank and investment accounts

Two separate reports cover money held in Latvia, and many Americans there need both.

Report	Who files	When
FBAR (FinCEN Form 114)	Foreign accounts above US$10,000 in total at any time in the year	April 15, automatic extension to October 15 (IRS)
Form 8938	Living abroad: above US$200,000 at year end or US$300,000 at any time if single; US$400,000 / US$600,000 if married filing jointly	With the tax return; US$10,000 penalty if not filed (IRS)

Pension and savings products in Latvia can be reportable too, so we list every account before deciding what goes where.

Will I pay tax twice living in Latvia?

Most Americans in Latvia end up owing little or no US income tax, because tax paid in Latvia or the exclusion of foreign earnings offsets it. The exclusion covers up to US$130,000 of earned income for 2025 and US$132,900 for 2026 (IRS); the foreign tax credit instead uses the income tax you paid in Latvia.

The US has an income tax treaty with Latvia (IRS treaty list), but US treaties contain a saving clause: they generally do not reduce US tax for US citizens, with specific exceptions written into each treaty (IRS Pub 54). So the treaty helps at the edges, for example with pensions or the order of tax credits, while the main relief comes from the exclusion or the credit.

See FEIE vs foreign tax credit for how the two compare.

Catching up on US filings

Catching up is usually possible without penalties. The Streamlined Foreign Offshore Procedures ask for 3 years of returns and 6 years of FBARs, with any tax and interest paid, and for eligible people living outside the US the penalties for late returns, information returns and FBARs do not apply (IRS). Eligibility turns on non-willful conduct and on meeting the non-residency test while in Latvia. See Streamlined filing.

Working with your adviser in Latvia

Americans in Latvia include teachers, business owners and Latvian Americans who returned.

We do not advise on the tax law of Latvia. A local adviser handles your return there; we prepare the US return and filings and use the tax you paid in Latvia for the credit. For the wider picture, see US tax for Americans in Europe.

How we help

Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares and signs US returns for Americans living in Latvia: the yearly return with the exclusion or credit, FBAR and Form 8938, and Streamlined catch-up. Every engagement starts with a fixed written quote after we review the file. See the yearly filing package.

Treaty and law references: the US and Latvia

Treaty and social security

The IRS lists the 1998 income tax treaty. General effective date (IRS Table 3): treaty Jan. 1, 2000 (IRS treaty documents for Latvia; treaty text; IRS Table 3).
Saving clause: paragraph 4 of Article 1 (General Scope), which lets the United States tax its citizens as if the treaty had not come into effect, apart from listed exceptions.
Article 24 (Relief from Double Taxation), on relief from double taxation.
Article 18 (Pensions, Social Security, Annuities,), on pensions and social security.
Article 15 (Dependent Personal Services), on employment income.
Social security: no US agreement with Latvia appears on the SSA list.

US law

Foreign earned income exclusion: Code section 911 (IRS Form 2555 instructions).
Foreign tax credit: Code section 901 (IRS Pub 54).
Form 8938: Code section 6038D and Treas. Reg. section 1.6038D (IRS Form 8938 instructions).
FBAR: 31 USC 5314 and 31 CFR 1010.350 (IRS Internal Revenue Manual 4.26.16).
Green card holders and residency: Code section 7701(b) (IRS Pub 519).

The tax rules of Latvia also apply to you there; a local adviser covers that side.

Common questions

Do Americans in Latvia pay US tax?

Yes. US citizens and green card holders file a US return on worldwide income wherever they live. Living in Latvia on April 15 gives an automatic extension to June 15, and tax paid in Latvia or the foreign earned income exclusion often reduces the US tax to little or nothing.

Does the US-Latvia tax treaty stop double taxation?

Partly. The treaty exists, but its saving clause lets the US tax its own citizens as if there were no treaty, with listed exceptions. The main relief is the foreign tax credit or the foreign earned income exclusion.

Do I pay social security in both the US and Latvia?

It can happen. There is no US social security agreement with Latvia, and self-employed Americans owe US self-employment tax even when they use the foreign earned income exclusion.

What if I never filed US taxes while living in Latvia?

If it was not willful, the Streamlined Foreign Offshore Procedures let you file 3 years of returns and 6 years of FBARs, and eligible people living abroad do not pay the usual failure-to-file, information return or FBAR penalties.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

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