Official Name: Latvia Startup Visa (Temporary Residence Permit for Startup Founders)
Administering Authority: Investment and Development Agency of Latvia (LIAA) in coordination with the Office of Citizenship and Migration Affairs (OCMA)
Program Launch: 2017
Legal Framework: Law on Aid for the Activities of Start-up Companies (enacted January 1, 2017)
Program Purpose: Attract innovative, technology-driven entrepreneurs from outside the EU to establish and grow scalable startups in Latvia, contributing to economic development and the country’s position as a regional innovation hub.
Latvia’s Startup Visa embodies a distinctive philosophy: innovation and scalability matter more than capital. While many countries require substantial minimum investments, Latvia evaluates applications primarily on the quality and potential of the business idea. This founder-first approach recognizes that the most transformative companies often begin with talented entrepreneurs and compelling visions rather than large bank accounts.
The program reflects Latvia’s broader strategy to position itself as the premier startup destination in the Baltic region, competing directly with neighboring Estonia’s e-Residency program while offering unique advantages including physical presence, EU access, and an exceptionally favorable tax environment.
Minimum Bank Balance: €6,000 (€500/month × 12 months)
This amount must be demonstrated through a bank statement at the time of application, ensuring founders have sufficient resources for initial living expenses before generating income.
Unlike many startup visa programs, Latvia does not require founders to bring significant capital. Instead, the program requires attracting external investment as validation of the business concept:
A qualified venture capital investor must be:
Minimum Salary Commitment: Founders must commit to paying themselves at least €859/month once operations begin
Company Capital: While no minimum share capital is required for company formation (€1 symbolic capital is permitted for SIA), adequate capitalization for operations is expected
Citizenship: Non-EU, non-EEA, non-Swiss nationals
Age: No specific age requirement, but must be legally capable of managing a business
Background Check: Clean criminal record from country of origin
Financial Self-Sufficiency: €500/month × 12 months = €6,000 minimum in bank account
Commitment: Willingness to establish and actively manage an innovative business in Latvia
The startup must meet Latvia’s legal definition of an innovative startup company:
Innovation Criteria (must meet at least one):
Scalability: Business model must demonstrate potential for rapid growth and international expansion
Sector Focus: Technology-driven or innovative business concepts across sectors including:
Latvia’s Startup Visa process is structured around business validation, residence approval, and post-arrival compliance.
Applicants must submit their startup proposal to the Investment and Development Agency of Latvia (LIAA). The submission includes a detailed description of the innovative product or service and its technological approach, a clearly defined business model and profitability strategy, market potential analysis, competitor assessment with competitive advantages, product R&D roadmap, and a 3-year business activity plan outlining investment needs.
The application must also include simplified 3-year financial projections covering income and expenses, a pitch deck (strongly recommended), and documentation outlining team qualifications and relevant professional experience. All materials are submitted via email to startup@liaa.gov.lv.
LIAA evaluates the application within approximately 30 days. If approved, the applicant receives an endorsement letter confirming that the business idea qualifies under Latvia’s startup criteria.
Using the LIAA endorsement letter, applicants apply for a temporary residence permit through the Office of Citizenship and Migration Affairs (OCMA) in Latvia or via a Latvian Embassy or Consulate if applying from abroad.
Applicants must submit a valid passport (all valid passports if more than one), completed residence permit application form, biometric photo (3×4 cm), LIAA endorsement letter, bank statement showing at least €6,000, criminal record certificate with apostille, proof of application fee payment, health insurance (if requested), accommodation confirmation for the first six months, and a formal declaration confirming a minimum monthly salary of €859 once employed. Documents are accepted in Latvian, English, German, French, or Russian, but supporting documents must be translated into Latvian.
Standard processing takes 30 calendar days (€160), expedited processing takes 10 working days (€280), and urgent processing takes 5 working days (€560). An additional ID card fee applies: €45 (10 working days) or €80 (2 working days).
Upon approval, applicants must visit OCMA or the Latvian Embassy to provide fingerprints, submit any additional requested documents (such as health or accommodation confirmation), and pay the ID card fee.
After biometric completion, the applicant receives an official decision letter and collects the Temporary Residence Permit (TRP) card, allowing legal residence and business activity in Latvia.
The TRP activates the applicant’s startup residence status, enabling company operations and compliance with post-arrival milestones.
The founder must register as a board member or director of a Latvian company (SIA or AS). The company must have been established within the past year.
Within the first year, the startup must secure €15,000 from an accelerator or €30,000 from a venture capital fund, or alternatively demonstrate substantial business progress.
Within 18 months, the startup must achieve a cumulative investment of €60,000 from qualified investors to maintain long-term eligibility.
Timeline: 5 Years
Startup Visa holders can apply for permanent residence after 5 years of legal continuous residence in Latvia.
Requirements
Residency:
5 years continuous legal residence with temporary residence permit
Must have resided in Latvia for at least 4 out of 5 years
Absences not exceeding 6 consecutive months or 10 months total over 5 years
Language:
Pass Latvian language test at A2 level (basic proficiency)
Test covers speaking, listening, reading, and writing
Civic Knowledge:
Knowledge of Latvian national anthem
Basic understanding of Latvian history and culture
Knowledge of fundamental principles of the Constitution
Financial:
Demonstrate stable income and financial self-sufficiency
No outstanding tax obligations
Character:
Clean criminal record
No threats to national security or public order
Application Process
Complete A2 Latvian language exam
Pass civic knowledge test (offered in Riga, Daugavpils, Liepaja, Ventspils)
Submit application to OCMA with:
Proof of 5-year residence
Language certificate
Employment/business documentation
Clean criminal record
Receive permanent residence permit (valid 5 years, renewable)
Permanent Residence Benefits
You must demonstrate sufficient financial capacity to support yourself and operate your startup in Latvia. At the time of application, you must show a minimum bank balance of €6,000, calculated as €500 per month for 12 months, through an official bank statement to cover initial living expenses before income generation begins. Unlike many startup visa programs, Latvia does not require founders to bring large upfront capital; instead, business viability is validated through external investment, which includes securing at least €15,000 from an accelerator or business angel within 12 months, or €30,000 from a qualified venture capital fund within 12 months, with a cumulative follow-on investment of €60,000 required within 18 months. A qualified venture capital investor must be an Alternative Investment Fund (AIF) registered in Latvia or an equivalent foreign entity, must have made early-stage investments in at least three companies in the past three years with each investment ranging between €30,000 and €200,000, must not hold more than 20% equity in the startup, and must not be a related person to the company. Additionally, once operations begin, founders must commit to paying themselves a minimum monthly salary of €859, and while Latvia allows company formation with symbolic share
Latvia offers one of Europe’s most favorable tax environments for startups, ranking 2nd globally on the International Tax Competitiveness Index for 8 consecutive years (2018-2025).
Latvia has implemented favorable stock option treatment:
Startups meeting qualification criteria receive additional benefits:
Fixed Social Tax: Instead of the standard 34.09% social contributions, eligible startups pay a fixed amount (approximately €340.90/month covering 2× minimum mandatory contributions), regardless of actual salary paid.
0% Personal Income Tax: Startup employees can be exempt from personal income tax on their earnings.
45% Co-financing for Highly Qualified Employees: Government covers 45% of salary costs for employees with:
Startups meeting qualification criteria receive additional benefits:
Fixed Social Tax: Instead of the standard 34.09% social contributions, eligible startups pay a fixed amount (approximately €340.90/month covering 2× minimum mandatory contributions), regardless of actual salary paid.
0% Personal Income Tax: Startup employees can be exempt from personal income tax on their earnings.
45% Co-financing for Highly Qualified Employees: Government covers 45% of salary costs for employees with:
| Tax Type | Rate |
|---|---|
| Personal Income Tax | 20% / 23% / 31% (progressive) |
| VAT | 21% (standard), 12%, 5%, 0% (reduced) |
| Social Contributions | 34.09% (Employer 23.59% + Employee 10.5%) |
| Dividend Tax (Individuals) | 0% if corporate tax already paid |
| Capital Gains | 20% |
| Real Estate Tax | 0.2% – 3% (municipality-dependent) |
| Country | Corporate Tax Rate | Tax on Reinvested Profits |
|---|---|---|
| Latvia | 0% reinvested / 25% effective on distributed profits | 0% |
| Estonia | 0% reinvested / 20% on distributed profits | 0% |
| Ireland | 12.5% (trading income) | 12.5% |
| Germany | ~30% effective | ~30% |
| France | 25% | 25% |
Latvia’s Startup Visa is ideal if you:
Think carefully about:
Latvia offers:
For founders seeking a strategic European base with world-class tax advantages and a supportive community, Latvia presents a compelling opportunity—particularly for those willing to embrace a smaller ecosystem where individual contributions matter and connections form quickly.
