Why open a company in Latvia: 10 main benefits for entrepreneurship in 2025
Latvia is one of the fastest growing Baltic states, which in recent years has increasingly become the choice of foreign investors and entrepreneurs. Thanks to its strategic location, loyal tax system and stable economy, Latvia offers favorable conditions for doing business both in Europe and abroad.

Next, we will look at the main reasons why opening a company in Latvia in 2025 is a wise and profitable decision.

🌍 1. EU membership and access to the single market
Latvia has been a full member of the European Union since 2004. This means:
* Direct access to a market of more than 450 million consumers
* Free trade of goods and services without customs barriers
* Simplified logistics, certification and licensing mechanisms
A company registered in Latvia automatically becomes a European company, which increases its confidence and competitiveness.

🧭 2. Advantageous geographical location
Latvia is located at trade crossroads between:
* Scandinavian
* Western Europe
* CIS and Central Asian markets
The country is traversed by major transportation corridors, including motorways, railways, and sea routes. The port of Riga and the international airport provide convenient connections to Europe and Asia, making Latvia an excellent logistics center.

📝 3. Simple company registration
Company Registration in Latvia is a quick, clear and affordable procedure:
* Possibility to open a business within 2-5 business days
* Minimum share capital of LLC (analogue SIA) — from 1€
* It is possible to register a company with one founder and director
* Remote registration via electronic signature available
The state register of companies works efficiently, and electronic services have simplified all stages of registration.

💶 4. Attractive tax system
Latvia offers one of the most flexible and competitive tax systems in the EU:
* 0% profit if not distributed
* 20% tax on distributed profits (dividends)
* 25% micro business tax - simplified regime for small businesses
* VAT (VAT) from 0% to 21%, with the possibility of voluntary registration
For startups, small businesses and foreign investors, this is a great opportunity to start a business with minimal fiscal risks.

💶 5. Simplified access to European capital
As part of the eurozone, Latvia uses the euro as its national currency. This:
* Eliminates currency risks in international settlements
* Provides access to EU banking services
* Facilitates the attraction of investments and loans from European funds and financial institutions
Most Latvian banks work with foreign clients and provide services in English, Russian and German.

👩 ‍ 💻 6. Skilled and multilingual workforce
Latvia is a country with a high level of education and training of specialists:
* English and Russian are widely used
* High level of technical and financial education
* Wages are lower on average than in Western Europe, with a decent level of quality of work
This makes Latvia attractive in the field of outsourcing, software development, customer service and other intellectual services.

🚀 7. Support for start-ups and technologies
Latvia is actively developing:
* Innovative project financing programs
* Startup incubators
* Preferential conditions for IT companies and technological solutions
Riga is already known as one of the Baltic startup centers, attracting investors and entrepreneurs from all over the world.

⚖️ 8. Transparent legal system and stability
Latvia is a country with a stable economy and predictable policies:
* There is a continental legal system that is aligned with European law
* Property rights and investment protection are guaranteed
* The country is a member of the Schengen area, which simplifies movement within the EU
This makes Latvia a reliable jurisdiction for long-term projects.

💼 9. Low operating costs
Latvia offers moderate prices for doing business:
* Office rent is lower than in Western Europe
* Accounting, legal and IT services are available
* Employee salaries are balanced with a good level of quality
Thanks to this, Latvia is ideal for those who want to reduce costs without compromising quality.

🛂 10. Possibility to obtain a residence permit in the EU
Foreign investors who:
* Open a company in Latvia
* Invests in business or creates jobs
— can apply for a temporary residence permit (TPA). It gives:
* Right to live and work in Latvia
* Free movement in the Schengen countries
* Possibility to continue naturalization
Business immigration is one of the most transparent and popular forms of legalisation in the EU.

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Opening a company in Latvia in 2025 is a strategically justified step for entrepreneurs who want to enter the European market, take advantage of tax and administrative advantages and conduct business in a transparent and efficient jurisdiction.

Latvia is ideal for both start-ups and international holding companies, thanks to:
✅ favourable tax system

✅ geographical location

✅ ease of registration

✅ access to the EU and qualified staff

⚖️ Legal support from Lex&Finance
Law firm Lex&Finance has been successfully working in the field of corporate and immigration law for more than 15 years. We offer:
* Comprehensive assistance in registering a company in Latvia
* Assistance in obtaining a residence permit on a business basis
* Tax and corporate planning consulting

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If you are considering Latvia as a platform for doing business, contact us and we will offer the best solution for your goals and budget.
📞 Contact us today — Start a business in Latvia with a reliable legal partner!

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