Important to know

Useful information  for investors


During a DVP (delivery versus payment) securities purchase transaction, the Bank (or a number of banks that are involved) will verify that the seller is holding the necessary bonds on their securities account, while the buyer has the necessary amount of funds available.

Once the instructions are submitted by both parties, the banks coordinate their instructions and generally take up to 2 business days to finalise the transaction.

Bonds are exchanged for money simultaneously and under the supervision of the banks involved, ensuring that the transaction is performed accurately and securely.

With trading bonds, you should consider 2 types of fees that apply:

1) securities purchase fee (paid once upon selling or buying a bond)

2)securities portfolio custody fee (withheld once per month depending on portfolio value)


Please note: securities account fees will vary from bank to bank; in order to accurately calculate every applicable expense, we recommend reading your bank’s pricelist.


For instance, the fees here at BlueOrange are:

• securities account opening – free of charge

• securities purchase fee – EUR 25 (withheld once upon buying a bond)

• securities portfolio custody fee – 0.25% on the nominal portfolio value (paid annually)


Thus, if you’re purchasing bonds worth EUR 10,000, your expenses will equal:

1) in the first year - securities purchase EUR 25 and securities portfolio custody 0.25% from 10 000 EUR or 25 EUR, in total 50 EUR

2) in subsequent years - securities portfolio custody 0.25% from 10 000 EUR or 25 EUR, in total 25 EUR.

Taxation applicable to bonds traded on the regulated market depends on the type of investor.


If you’re purchasing bonds as a private individual a legal entity (registered in Latvia)

The issuer of the bonds, if it is registered in Latvia, will withhold a 20% individual income tax (IIT) from any payment of interest (coupon).

Thus, the individual will receive a coupon payment net of 20% IIT. The issuer of the bonds, if it is registered in Latvia, will not withhold taxes from any payment of interest (fees).

Tax calculation and payment for coupon income is performed by the recipient of the income submitting a corporate income tax (CIT) declaration for a taxation year.


If you’re purchasing bonds as a legal entity (registered in Latvia)

A legal entity is directly responsible for CIT payments; coupon income from securities traded on the regulated market is not subject to CIT.

This is a general overview and should not be considered legal or taxation advice. This material does not include complete and comprehensive information on all taxes applicable to investments in bonds. Tax rates and tax payment provisions may change between the time from an issue of bonds and the redemption thereof. It is advisable that investors consult with their counsel on tax matters relating to their specific situation and the applicable legislation of Latvia or other countries to which they might be subject.

This is a general overview and should not be considered legal or taxation advice. This material does not include complete and comprehensive information on all taxes applicable to investments in bonds. Tax rates and tax payment provisions may change between the time from an issue of bonds and the redemption thereof. It is advisable that investors consult with their counsel on tax matters relating to their specific situation and the applicable legislation of Latvia or other countries to which they might be subject.

Bonds (Notes) - fixed income securities issued by governments, municipalities and companies as a way to raise financing for various purposes. To learn more about bonds please download our infographics.

Coupon (Interest) - a regular payment to investors. A coupon can be fixed or floating. Coupons are paid either monthly, quarterly, semi-annually or annually according to the issue terms.

Principal - the nominal value of securities, paid either at maturity (end of the term) or in several installments.

Prospectus - a legal document which specifies all the terms and conditions of and issue. Prospectuses are registered with government agency, e.g. Financial and Capital Markets Committee.

Risks - every investment has a number of risks. Notes prospectuses contain a risks section where all the main risks of a particular issue are disclosed. Investors should acquaint themselves with information disclosed in a prospectus and on the stock exchange before making a decision to invest.

Stock exchange - all the notes issues mentioned on this website are listed on the regulated market (stock exchanges). Nasdaq Riga is part of Nasdaq (USA), which manages stock exchanges in a number of countries.