How to Notify VID About a Rental Agreement in EDS: A Practical Example

In our previous article, we explained when VID must be notified about a rental agreement. This time, we will walk through a practical example: how an individual uses EDS to notify VID about an apartment rental agreement and chooses the 10% personal income tax (PIT) regime.

In brief: conclude the agreement in writing, submit a notification of economic activity in EDS and attach the agreement within five working days, then report the rent received and calculate the 10% PIT in the annual income declaration the following year.

This guide covers a straightforward situation: a Latvian tax resident rents residential premises to another individual who does not use them for economic activity. It does not cover short-term accommodation, renting to a company, non-resident situations, co-owned property, or VAT matters.

Example: Marta Rents an Apartment to Jānis

The example in this article is fictional. Marta and Jānis are not real people, and the figures are used only to illustrate the calculation.

• Marta owns the apartment and is a Latvian tax resident.
• Jānis rents the apartment as an individual for residential use.
• The written agreement is concluded on September 1, 2026, for a fixed term ending August 31, 2027.
• The rent is EUR 500 per month, transferred by Jānis to Marta’s bank account.
• The security deposit is EUR 500. Jānis pays utilities and property management charges directly to the service providers, and the agreement separates these payments from the rent.
• Marta chooses not to register economic activity under the general procedure, but instead to notify VID of economic activity under the 10% regime.

Before deciding, Marta reviews VID’s information for property landlords. If a situation differs from this example, the applicable regime and obligations should be checked separately.

What to Prepare Before Using EDS

To complete the form without interruption, Marta prepares the following in advance:

• a rental agreement signed by both parties, in PDF or another format accepted by EDS;
• the property’s exact address and cadastral designation, which can be checked on Kadastrs.lv;
• the date the agreement was concluded, the rental period, and the rent amount;
• the bank account into which the rent will be paid;
• the place and type of economic activity—in practice, NACE 68.20 is used for renting real estate.

A residential rental agreement must be in writing and concluded for a fixed term. The address, property details, and information about the parties must be consistent throughout the agreement; the basic requirements are set out in the Residential Tenancy Law.

1. Open the Notification Form for Economic Activity

Marta signs in to VID EDS and selects: “Izveidot jaunu dokumentu” → “No veidlapas” → “Nodokļu maksātāju reģistrācijas un datu izmaiņu veidlapas” → “Nodokļu maksātāja (fiziskās personas) reģistrācija (…)” → “Paziņotās saimnieciskās darbības veicējs” → “Reģistrēties”.

EDS section names may change over time. If the menu is different, use the current VID guide to notifying economic activity or the EDS search function.

2. Enter the Activity Period and Bank Account

In the “Darbības periods no” field, Marta enters the date on which she starts using the notified economic activity regime. The “Darbības periods līdz” field concerns the end of the economic activity, not the end date of a particular rental agreement. Marta therefore leaves it blank, because the agreement ending does not necessarily mean that she will cease the activity.

Marta also enters the bank account into which she will receive the rent. It is advisable to state the rental month and property address in each payment reference, making it easier to verify the income later.

3. Attach the Rental Agreement and Property Details

Marta adds the place of activity and completes the agreement details:

• place of activity—the address of the apartment being rented out;
• type of activity—renting real estate (NACE 68.20);
• cadastral designation—the designation of the property stated in the agreement;
• date the agreement was concluded—September 1, 2026;
• term of the agreement—until August 31, 2027;
• the other party—Jānis’s details as stated in the signed agreement.

Marta then attaches the signed agreement. Before submitting it, she checks that the file opens, the text is legible, and both parties have signed it.

4. Check, Submit, and Wait for “Pieņemts” Status

Marta uses the EDS validation function, corrects any indicated errors, saves, and submits the document. Pressing the submit button does not complete the process. In the EDS documents and correspondence sections, she must check that the submission has “Pieņemts” status and that VID has not requested additional information.

The notification must be submitted within five working days of concluding the agreement. VID must also be notified within five working days when the notified economic activity ends. This deadline follows from the Law on Personal Income Tax; check the current wording of the law and VID guidance before submitting.

If the deadline has already passed, submit the notification as soon as possible and ask VID about any consequences.

How the 10% Tax Is Calculated in This Example

Assume that in 2026 Marta receives rent for four months, from September through December:

• rent received: 4 × EUR 500 = EUR 2,000;
• documented real estate tax paid for this apartment in 2026: EUR 120;
• rental income subject to PIT: EUR 2,000 − EUR 120 = EUR 1,880;
• calculated PIT: EUR 1,880 × 10% = EUR 188.

If Marta did not deduct the real estate tax or could not document it, the tax in this example would be EUR 200. Under the 10% regime, repair costs, insurance, loan interest, and other expenses cannot be deducted; only documented real estate tax for the relevant property is deductible.

Utilities and property management charges are excluded from this simplified calculation because Jānis pays them directly to the service providers. If Jānis transferred these amounts to Marta and she then paid the providers, they would be income subject to PIT for Marta under the 10% regime. The security deposit is not included in the calculation; if it is retained or used to cover a debt, the tax consequences should be assessed separately. The agreement and payment records should clearly separate rent, utilities, and the security deposit.

Compare Rental Income Tax Regimes

Use the calculator to compare three rental income tax regimes and estimate your 2026 tax using your own figures.

When to Submit the Annual Income Declaration

Because Jānis is an individual and does not withhold tax when paying the rent, Marta reports the rental income in the annual income declaration for 2026, submitted in 2027, in Annex D1¹. The declaration is usually submitted from March 1 to June 1, 2027. If the person’s total annual income exceeds the statutory threshold, the filing period is from April 1 to July 1.

The declaration must show the rent actually received, not the amount stated in the agreement. Marta checks the specific filing and tax payment deadlines in VID’s section “How to register and conduct economic activity”. If rent is received only by bank transfer, VID explains that a separate income register is not required; bank statements and other supporting documents should nevertheless be retained.

What to Do If the Agreement Changes or Ends

If Marta and Jānis change the rent, term, or other material conditions, they first document the changes in writing. Marta then checks in EDS whether the amendments must be submitted to VID and how to do so.

When Marta completely ceases the notified economic activity, she registers its termination in EDS within five working days. The end of one agreement does not always mean that all rental activity has ended—for example, if the property is already being rented to another tenant.

Short Checklist Before Submitting

• The agreement is in writing, signed, and concluded for a fixed term.
• The address and cadastral designation match the property details.
• The selected 10% regime is appropriate for your specific situation.
• The EDS notification was submitted within five working days.
• The attached file opens and is legible.
• The EDS status is “Pieņemts”, and there is no unanswered correspondence from VID.
• The rent was received in a traceable form and the documents have been retained.
• The annual declaration deadline has been added to the calendar.

Put the Agreement in Order Before Notifying VID

An EDS notification does not replace the rental agreement itself. Clearly defining the rent, payment procedure, security deposit, utilities, handover procedure, and termination makes it easier to complete the EDS information and helps prevent misunderstandings with the tenant.

In the Doqubit document catalog, you can prepare an apartment rental agreement and related documents step by step.

This article was prepared on September 1, 2026, using publicly available information from VID and Likumi.lv. It describes a general example and is not legal, tax, or accounting advice, nor does it assess the reader’s individual circumstances. Before acting, check the latest information from VID or consult an appropriate professional.