A company in Latvia: 0% tax while your profit keeps working
Latvia’s tax system has a feature growth-stage founders genuinely love: corporate tax is due only when profit is distributed. Keep the money in the company, reinvest it, buy stock, hire — the rate is 0%. Pay out dividends, and 20% applies to the distributed amount. For a business that reinvests, that can mean years of operating with effectively no corporate tax.
The vehicle is the SIA, Latvia’s limited liability company. Standard share capital is €2,800, with half paid in before registration. There’s also a lighter path: a reduced-capital SIA from €1, available to individual founders — with the caveat that members carry personal liability for the shortfall up to €2,800 in case of insolvency. Which option makes sense depends on your plans; we’ll help you choose.
Speed is among the best in the EU. The Register of Enterprises processes a correct filing in 1–3 business days, and with an e-signature the whole thing can be done online. Standard VAT is 21%.
We take the entire journey off your hands: articles of association and founding documents, filing with the Register of Enterprises, tax registration with VID, a legal address in Riga — and then bookkeeping and ongoing support so your filings land on time without you thinking about them.
A Latvian company can also anchor a residence permit, whether through board membership in your own firm or a share-capital investment.
Pricing for Latvia is tailored to each case. Book a free consultation — we’ll go through your situation and give you exact numbers.