In short
Americans can register a Latvian company (SIA) without living in Latvia: €2,800 minimum share capital, a decision within 1–3 working days, and 20% corporate tax only when profit is distributed. For residence, founders of innovative startups can use Latvia's startup permit, which the new Immigration Law (15 September 2026) kept and widened, or invest €50,000 in a Latvian company plus a €10,000 state fee. Permits for sole traders and business owners were abolished on 15 September 2026.
Latvia startup: key facts
Last verified 27 September 2026| Startup founder permit | Kept and widened by the new law (only high terrorism-risk countries excluded)# Source: PMLP: New Immigration Law, main changes and requirements (LV) |
|---|---|
| Permits for sole traders / business owners | Abolished from 15 Sep 2026# Source: LV portāls: New Immigration Law, eight more changes |
| Share capital investment | €50,000 (company with ≤50 staff and ≤€10m turnover or balance)# Source: PMLP: Share capital investor |
| Minimum share capital | €2,800 (or from €1 for a small-capital SIA)# Source: Register of Enterprises: share capital · Register of Enterprises: small-capital SIA |
| Registration time | 1–3 working days (1 day expedited)# Source: Register of Enterprises: registration summary |
| Corporate income tax | 20% on distributed profit (= 25% of the net dividend)# Source: Corporate Income Tax Law, likumi.lv · State Revenue Service: corporate income tax |
| Tax on retained profit | 0% until distributed# Source: State Revenue Service: corporate income tax |
| Micro-enterprise tax | 25% of turnover; not available to SIAs since 2022# Source: State Revenue Service: micro-enterprise tax |
| Short stays without a visa | 90 days in any 180-day period (Schengen)# Source: European Commission: Schengen Area |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Latvia's business and founder rules don't depend on nationality, so Canadians, Australians, New Zealanders and Brits start a business exactly as described on this page. Only your home country's side is different:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Startup permit | The new law keeps the startup route open to all nationalities except citizens of high terrorism-risk countries. |
|---|---|
| Tax at home | The US taxes its citizens wherever they live; most other countries, including Canada, Australia, New Zealand and the UK, tax by residence, with their own rules for owning a foreign company. Check with a tax advisor in your country. |
| Tax treaty with Latvia | In force with the US, Canada, the UK, Japan, South Korea, Israel and Singapore; none with Australia or New Zealand.Source: State Revenue Service: tax treaties in force |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
Overview
Launching Your Venture in Latvia
Latvia is a cost-effective, digitally advanced EU member state with streamlined processes for founders. As a US citizen you can enter Latvia visa-free for 90 days — giving you time to engage the ecosystem, register a company, and initiate your residency application before committing fully.
Company registration and residency processes are digital, fast, and predictable compared to many Western EU countries. Once established, your Latvian entity gives you access to the EU single market of 450 million consumers, Nordic networks, and a growing pool of English-speaking STEM talent.
Latvia's company registration and residency processes are digital, fast, and predictable — a genuine competitive advantage for American founders who need clarity and speed.
Our Services
Your Partner for Latvian Business Launch
We guide American entrepreneurs, startup founders, and tech innovators through Latvia's business-friendly landscape, from concept to residency.
Business & Residency Pathway Strategy
Integrated assessment to align your business model with Latvia's startup founder permit or the share capital investor permit, determining the most efficient route for founder residency.
Latvian Startup Visa Facilitation
End-to-end support for the official Latvian Startup Visa. We assist with developing your innovative business plan, connecting you with accredited Latvian startup incubators or Startup Latvia (run by the Investment and Development Agency, LIAA), and managing the application with the Office of Citizenship and Migration Affairs (PMLP).
Company Formation & Legal Setup
Comprehensive assistance in registering your Latvian entity — typically a SIA (Limited Liability Company) — including notarization, opening a corporate bank account, and ensuring compliance with local commercial law.
Settling-In for Entrepreneurs
Practical support for obtaining your Latvian residence permit, securing a Personal Code (Personas kods), finding co-working spaces or offices in Riga's tech districts, and navigating the tax system. Check LocalVouch for accountants and landlords other American founders have personally recommended.
Ecosystem Integration
Connections to Latvia's key startup resources: TechHub Riga, Latvian Startup Association, pitch events, investor networks, and grant opportunities including EU funding.
Costs & Tax
Business & Living Costs in Latvia
Latvia offers one of the lowest operational and personal living costs in the EU, maximizing your startup runway.
Tax regime
Corporate income tax is a flat 20%. Crucially, there is no tax on reinvested profit — tax is only triggered when profits are distributed. The micro-enterprise tax (25% of turnover) is only available to individuals and sole traders, not to SIAs.
Operational overhead
Office space in Riga is a fraction of the cost of Western European capitals. Salaries for skilled tech talent are competitive yet affordable relative to Western markets. High-speed internet and modern utilities are inexpensive.
Minimum share capital
A standard SIA (Limited Liability Company) requires a minimum share capital of €2,800. The investor residence route requires €50,000 in share capital plus a €10,000 state fee. The Register of Enterprises decides on a registration in 1–3 working days; opening a bank account and preparing documents usually takes longer.
Where to Base
Latvian Tech Hubs & Key Locations
Riga
The undisputed capital of Latvian business and innovation. Home to TechHub Riga, Startup Latvia headquarters, major co-working spaces, and most venture capital activity. The districts of Centrs and Skanste (the "Nordic Quarter") are the main tech corridors.
University of Latvia & RTU
The University of Latvia and Riga Technical University are key sources of talent and research collaboration, with strong programmes in IT, engineering, and life sciences. Engagement with both is a practical route to recruiting early-stage employees.
Liepāja, Ventspils & Latgale
Latvia's special economic zones (Liepāja, Rēzekne and Latgale, which includes Daugavpils) and the free ports of Riga and Ventspils offer tax incentives, lower costs, and grants for specific industries — including smart materials, logistics, and industrial tech. Ideal for hardware or manufacturing startups seeking lower overhead and direct incentive access.
Step by Step
Essential Steps for American Entrepreneurs
Validate your idea with the ecosystem
Before relocating, engage with Latvian incubators — EIT Digital Riga, Buildit Latvia, Commercialization Reactor — to test fit and pursue endorsement, which significantly strengthens your Startup Visa application even though it is not strictly mandatory under the core Immigration Law route.
Secure initial funding
The startup route requires proof that you can support yourself (before the reform PMLP listed €500 a month per adult; confirm the current amount). For the share capital route, have your €50,000+ investment capital and the €10,000 state fee ready and documented.
Register your Latvian company (SIA)
The Register of Enterprises decides within 1–3 working days once your application is complete. Steps include choosing a unique name, drafting articles of association, signing (with a secure e-signature or before a notary), and paying in share capital (minimum €2,800 for a standard SIA).
Apply for your Residence Permit
Submit your application in person at the PMLP if you are legally in Latvia, electronically with a secure e-signature, or at a Latvian embassy. Required documents include your business plan, company registration documents, proof of funds, and health insurance.
Obtain your e-paraksts (digital signature)
Essential for signing official documents, filing taxes, and accessing all government services online. Latvia's e-governance infrastructure is among the strongest in the EU — use it from day one.
Tap into local talent
Utilize local recruitment platforms such as CV.lv and engage directly with universities. Latvia has a high percentage of English-proficient STEM graduates at competitive salary levels relative to Western European markets.
Why Latvia
Why Latvia is Competitive for US Founders
EU Membership & Single Market
Full access to the EU single market of 450 million consumers, with freedom to trade, hire, and operate across all member states.
Digital Infrastructure & E-Governance
Strong e-governance and fast internet. Company registration, tax filing, and official correspondence are conducted digitally via e-paraksts (digital signature).
Strategic Location
A bridge between EU, CIS, and Nordic markets — well-positioned for businesses targeting Northern Europe or Baltic expansion.
Competitive Tax Policy
20% corporate tax on distributed profit, no tax on reinvested profit, and access to EU structural funds and direct government grants for qualifying startups.
Low Cost, High Quality of Life
Riga offers a safe, clean, and nature-rich environment at significantly lower personal and operational cost than Western European capitals — maximising your startup runway.
FAQ
Frequently asked questions
Can Americans start a business in Latvia without living there?
Yes. Directors and shareholders of a Latvian SIA do not need to live in Latvia, but the company needs a Latvian legal address. The standard minimum share capital is €2,800 and the Register of Enterprises decides within 1–3 working days.
Does Latvia still have a startup visa after the 2026 reform?
Yes. The new Immigration Law in force since 15 September 2026 kept the startup founder route and widened who can use it; only citizens of high terrorism-risk countries are excluded. Confirm the current funds requirement and permit length with PMLP.
Can I get Latvian residence as a freelancer or sole trader?
Not any more. Permits for business owners and sole traders (IK) were abolished on 15 September 2026. Freelancers working for foreign clients may qualify for the digital nomad visa instead, and investors can use the €50,000 share capital route.
Latvia
Everything about moving to Latvia
Startup visas · other countries
Startup visas in other countries
Ready to Launch Your Business in Latvia?
We help American founders choose the right structure and residence route, register the company and get set up in Riga.