Starting A Business in Latvia: Costs, Residency and Investment Opportunities

Starting a business in Latvia has become increasingly attractive for entrepreneurs and investors looking to enter the European market. Latvia offers one of the most competitive tax systems in Europe, including a 0% tax on reinvested profits. The country also has a digital-friendly environment where some companies can be registered in as little as one business day.  

Latvia gives entrepreneurs affordable business costs with access to the EU market and this guide explains how to start a business in Latvia in 2026, including company structures, investment options, tax advantages, and residency requirements for foreign entrepreneurs. 

Starting a business in Latvia: Key Takeaways

Latvia allows companies to reinvest profits tax-free, with corporate tax only applied when dividends are distributed.  

Foreign entrepreneurs can qualify for Latvian residency through a €50,000 business investment under the Latvia Golden Visa program.  

A Limited Liability Company (SIA) can be registered online in as little as one business day, with share capital starting from just €1 under certain conditions.  

Latvia provides businesses with access to the European Union market through its membership in the Eurozone and Schengen Area.  

The country is becoming increasingly attractive for startups and international businesses due to its low operating costs, multilingual workforce, and digital-friendly business environment. 

• 0% Tax on Reinvested Profits: Companies only pay corporate tax (20%) when profits are distributed as dividends. Profits that are reinvested into the business are taxed at 0%, helping companies grow faster. 
• Special Economic Zones (SEZs): Areas such as the Freeport of Riga and the Latgale SEZ can offer tax rebates of up to 80% on corporate and real estate taxes. 
• Affordable Investment Entry: Foreign entrepreneurs who qualify for residency through the Latvia Golden Visa can invest a minimum €50,000 investment in a Latvian company, provided the business has fewer than 50 employees and an annual turnover below €10 million. 
• Access to the EU Market: As part of the Eurozone and Schengen Area, Latvia gives businesses access to more than 450 million consumers across Europe. 
• Low Business Setup Costs: It is possible to register a Limited Liability Company (SIA) with as little as €1 in share capital under certain conditions, and the process can be completed online. 
• Skilled Multilingual Workforce: Latvia has a well-educated workforce with strong English skills and knowledge of several regional languages, supporting international business operations. 

Foreign entrepreneurs can obtain Latvian residency through a business investment route under the Latvia Golden Visa program. One of the most common options is investing in the equity capital of a Latvian company to support its economic growth. 

To qualify, applicants need to: 

• Invest at least €50,000 into a Latvian company with fewer than 50 employees and an annual turnover or balance sheet total not exceeding €10 million. 
• Pay a one-time government fee of €10,000 into the state budget upon the successful approval of the residence permit. 
• Ensure an annual tax contribution, as the company must pay a cumulative minimum of €40,000 in taxes each year to maintain the residency status. 
• Maintain the investment throughout the five-year residence period. 

Larger companies with 50+ employees or over €10 million turnover require a higher investment of €100,000. Successful applicants receive a temporary residence permit that allows them to live in Latvia and travel visa-free within the Schengen Area. This option is particularly attractive for entrepreneurs and investors looking to establish a stable business presence in the European Union while securing long-term residency benefits. 

For most foreign entrepreneurs and investors, the process of starting a business in Latvia takes between one and three business days once all documents are prepared. 

Step 01/ Choose your business structure 

The most common company type for foreign entrepreneurs is the Limited Liability Company (SIA), which is suitable for startups, SMEs, and international businesses. 

• Standard SIA: Minimum capital of €2,800 (at least 50% must be paid upfront). 
• Small-Capital SIA: Minimum capital from €1 to €2,799 (only available if shareholders are individuals, max 5 people). 

Step 02/ Prepare the company incorporation documents 

To register a company in Latvia, applicants need to prepare the following documents: 

• Memorandum of Association or establishment decision 
• Articles of Association 
• Register of Shareholders 
• Consent from the property owner for the registered business address in Latvia 

Step 03/ Deposit the Share Capital 

Before company registration, founders need to deposit the required share capital into a temporary bank account or licensed EU fintech account. Once the funds are deposited the bank issues a proof of payment certificate, which must be submitted during registration. 

For small-capital SIAs, this process may be handled digitally during the application. 

Step 04/ Register the company with the Latvian Register of Enterprises 

Applications can be submitted through the official Latvian Register of Enterprises portal. 

• Online Registration: Entrepreneurs with an EU-recognized electronic signature can complete the process fully online. 
• Notarized Registration: Applicants without an accepted e-signature may need to sign documents before a notary or at a Latvian consulate. 

Step 05/ Complete tax and VAT registration 

After the company is registered, businesses must comply with Latvian tax requirements. This includes registration with the State Revenue Service (VID), and applying for a VAT number if annual turnover is expected to exceed €50,000. Businesses should also obtain a Latvian electronic signature (eParaksts) to manage tax filings and official communications online.]