A new directive in Latvia exempts non-working seniors receiving pensions of up to 1000 euros from recovering any overpaid taxes, which also encompasses medical expenses incurred. This change comes as the new income declaration period approaches, with the Latvian Tax Authority emphasizing that tax refunds can only occur if the income tax has been duly paid.

Starting in 2025, the portion of pension income below 1000 euros per month will be exempt from income tax entirely, resulting in higher net monthly income for many seniors. Consequently, since there will be no tax withheld, these pensioners will no longer have to engage in recovery processes for taxes, streamlining their financial management and improving their quality of life.

The authority advises working pensioners to file their income declarations to check for any potential refunds while also informing them that relatives can include medical expense receipts in the declarations of non-tax-paying seniors. This measure aims to alleviate the financial burden on elderly citizens and facilitate easier tax processes, hopeful to encourage more seniors to claim entitled refunds without confusion and to ensure they benefit from expanded income.