Loans and loan interest
Income treated as loans to individuals and income generated from reduced loan interest will be subject to PIT. Income treated as loans to individuals are loans that are not repaid within six months after the contractual loan payment period, but not longer than during 66 months. Such definition of income is not applied to:
- loans up to EUR 1 500,
- loans for medical or educational expenses,
- loans from individuals, who are bound by marriage or relationship to the third degree,
- loans where the lender is a credit institution or a credit union, which has received a special permit (licence) for the provision of a consumer credit service.
/Ministry of Finance of the Republic of Latvia, laws/