Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the Latvijas Banka decision, including banking and payment rails.
Get a crypto license in Latvia.
Latvia licenses crypto under MiCA, with Latvijas Banka as the single authority. Two things set it apart: a regulator that sits down with applicants before they file, and 0% tax on profits you reinvest. Add an EU passport and it is a serious base. We build that file end to end.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Crypto licenses obtainedlicenses obtained
Updated
Latvia in brief
A regulator that talks, and tax on profits you take out.
Latvia licenses crypto-asset service providers under MiCA, with Latvijas Banka - the central bank, which absorbed the former financial regulator FCMC in 2023 - as the single competent authority. What makes Latvia unusual is how the bank runs the process. It offers free, effectively unlimited pre-licensing consultations, and structures authorisation as a genuine dialogue: a consultation stage, then pre-application, then the formal file. The applicant and the regulator work the same problem rather than trading paperwork across a wall. A physical office in Latvia is required, and own funds sit at the MiCA €50,000 to €150,000 by service class.
The tax system is the second draw, and it is a real one. Since 2018 Latvia taxes corporate profit only when it is distributed - retained and reinvested profit is taxed at 0%, whatever its source. A scaling crypto business that ploughs earnings back into product, capital and compliance can defer corporate tax entirely until it pays dividends, when a 20% rate (calculated 20/80 on the distribution) applies; from 2026 a 15% alternative exists for companies owned only by individuals. Pair the reinvestment advantage with a consultative regulator and a full EU passport, and Latvia becomes a base built for growth. We build files for it end to end.
Latvia licenses crypto under MiCA, with Latvijas Banka as single authority. Two things stand out: free pre-licensing consultations, and 0% tax on profits you reinvest.
Distributions are taxed at 20% (20/80); a 15% alternative arrives in 2026 for individual-owned firms. A physical office is required - and the passport covers 27 states.
Licence classes
One authorisation, scoped to your services.
MiCA defines ten crypto-asset services across three capital classes. Latvijas Banka authorises the exact scope you apply for, and the scope drives capital, systems and the depth of the file. We fix the perimeter first, then build once.
Ten MiCA services in three capital classes - Latvijas Banka authorises the exact scope you apply for.
01 - CASP · CLASS 1-2
Core crypto services
For brokers, exchangers and custodians - execution, exchange and safekeeping of client crypto-assets under one Latvijas Banka authorisation. Minimum capital €50,000-€125,000 depending on scope.
For brokers, exchangers and custodians - execution, exchange and safekeeping of client crypto-assets under one Latvijas Banka authorisation. Minimum capital €50,000-€125,000 depending on scope.
- ✓Exchange of crypto ↔ fiat and crypto ↔ crypto
- ✓Execution, reception and transmission of orders
- ✓Custody and administration of client crypto-assets
- ✓Transfer services for crypto-assets
- ✓Advice and portfolio management on crypto-assets
- ✓Placing of crypto-assets
02 - CASP · CLASS 3
0% on reinvested profitTrading platform
The highest MiCA tier - operation of a crypto trading venue with €150,000 minimum capital, listing rules and market-abuse controls, passportable across the EU from a growth-friendly Baltic base.
The highest MiCA tier - a trading venue with €150,000 capital, passportable from a growth-friendly Baltic base.
- ✓Operation of a crypto-asset trading platform
- ✓Matching of buyers and sellers in the venue
- ✓Admission-to-trading (listing) framework
- ✓Market-abuse monitoring under MiCA Title VI
- ✓Combines with custody and exchange services
- ✓One home regulator - Latvijas Banka - for all 27 states
Costs and timelines are confirmed for your case before any work begins. Latvijas Banka charges statutory fees by scope; the real investment is the file - capital, substance and documentation are scoped individually in your quote.
Why Latvia
Built for a business that means to scale.
The framework rests on MiCA and Latvia's national act, supervised by Latvijas Banka - a regulator that consults, inside a tax system that rewards reinvestment.
✓
0% on reinvested profit
Latvia taxes corporate profit only when distributed. Earnings kept in the business - funding product, capital and compliance - are taxed at 0% until dividends are paid. For a scaling firm, that is real growth capital.Corporate tax deferred until you distribute.
✓
A regulator that consults
Latvijas Banka offers free, effectively unlimited pre-licensing consultations and a staged dialogue. You learn what a passing file looks like before you spend on building it, which cuts wasted work.Free pre-licensing dialogue cuts wasted work.
✓
An active, early market
Latvia issued a run of CASP authorisations through 2026, so the process is proven rather than theoretical. You join a working register, with a regulator that has run real files.A proven, working CASP register.
✓
Cost-effective substance
Office space, salaries and running costs sit below the EU average, so the physical presence MiCA requires is affordable to build and keep - substance without a Western European price tag.Real presence without a Western price tag.
✓
Baltic fintech pedigree
The Baltics have punched above their weight in fintech for a decade. English is a working language, the talent is digital-native, and the ecosystem understands regulated finance.Digital-native talent, English working language.
✓
One passport, growth base
A single Latvijas Banka authorisation passports into all 27 EU states after notification - the reinvestment advantage and the full-market reach in one package.All 27 EU states by notification.
How it compares
How Latvia differs from other routes.
Latvia is the reinvestment-friendly Baltic base with a consultative regulator. The honest comparison is below.
Latvia vs other jurisdictions
| Feature |  Latvia | Other jurisdictions |
|---|---|---|
| Regulatory regime | MiCA CASP under Latvijas Banka | National regimes or lighter desks |
| Corporate tax | 0% on reinvested profit | Taxed on profit when earned |
| Regulator style | Consultative, staged dialogue | Often arms-length |
| Cost of substance | Below EU average | Higher in the West |
Regulatory regime
LatviaMiCA CASP under Latvijas Banka
Other jurisdictionsNational regimes or lighter desks
Corporate tax
Latvia0% on reinvested profit
Other jurisdictionsTaxed on profit when earned
Regulator style
LatviaConsultative, staged dialogue
Other jurisdictionsOften arms-length
Cost of substance
LatviaBelow EU average
Other jurisdictionsHigher in the West
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Latvia | MiCA CASP (Latvijas Banka) | 0% reinvested · 20% distributed | Consultative, office required |
 Estonia | MiCA CASP (Finantsinspektsioon) | 0% reinvested · 22% distributed | Digital, thorough |
 Lithuania | MiCA CASP (Bank of Lithuania) | 17% CIT (2026) | Fast, but strict AML practice |
 Poland | MiCA CASP (KNF) | 19% CIT | Large market, thorough |
LatviaLicense typeMiCA CASP (Latvijas Banka)
Taxation0% reinvested · 20% distributed
RequirementsConsultative, office required
EstoniaLicense typeMiCA CASP (Finantsinspektsioon)
Taxation0% reinvested · 22% distributed
RequirementsDigital, thorough
LithuaniaLicense typeMiCA CASP (Bank of Lithuania)
Taxation17% CIT (2026)
RequirementsFast, but strict AML practice
PolandLicense typeMiCA CASP (KNF)
Taxation19% CIT
RequirementsLarge market, thorough
Before you apply
Requirements for the Latvijas Banka authorisation.Requirements for Latvijas Banka authorisation.
Latvijas Banka reviews a CASP file completely, to the MiCA standard - and it tells you what it expects during the consultation. The checklist below is what a file that passes actually contains.
01
Latvian entity - an SIA with its registered office and effective management in Latvia.
02
Physical office - a real office in Latvia is a stated requirement, not a formality.
03
Fit & proper management - competent directors with clean records and relevant experience.
04
Own funds - €50,000, €125,000 or €150,000 by service class, or a quarter of fixed overheads if higher.
05
Programme of operations - services, target markets, volumes and a three-year business plan the regulator can interrogate.
06
AML/CFT framework - KYC, EDD, monitoring and reporting to the FIU Latvia, with a named compliance officer.
07
ICT and DORA compliance - resilience testing, incident reporting, a register of ICT providers and exit plans.
08
Safeguarding of client assets - segregation of client crypto and funds, custody policy and key-management design.
09
Governance - ownership disclosed up to UBOs, qualifying holdings declared, conflicts and complaints procedures.
10
Pre-application engagement - the consultation and pre-application stages used properly, so the formal file is right first time.
11
Wind-down plan - credible, funded and documented.
01
Latvian SIA with effective management here.
02
A real, physical office in Latvia - required.
03
Fit & proper directors.
04
Own funds €50k-€150k by class.
05
Programme of operations + 3-year plan.
06
AML/CFT with named officer, FIU reporting.
07
ICT resilience under DORA.
08
Segregation and custody of client assets.
09
Ownership disclosed up to UBOs.
10
Consultation and pre-application used properly.
11
Credible, funded wind-down plan.
Reflects MiCA, Latvia's national act and Latvijas Banka practice as of 2026. A physical office in Latvia is required - operating without CASP authorisation is unlawful.MiCA + national act, Latvijas Banka practice as of 2026. Physical office required.
How it works
From first call to the Latvijas Banka register.
01
Perimeter and consultation
We map your services to the MiCA classes, fix scope, capital and timeline in writing, and open the pre-licensing dialogue with the regulator.MiCA classes, capital - and open the regulator dialogue.
02
Latvian company and substance
SIA formation, registered and physical office, directors and the governance layer - the presence Latvijas Banka assesses behind the file.SIA, physical office, directors - the presence behind the file.
03
The application file
Programme of operations, AML/CFT framework, ICT and DORA documentation, safeguarding and wind-down - shaped through the consultation, then formally filed.Programme, AML, DORA, wind-down - shaped, then filed.
04
Latvijas Banka review
The MiCA clock is 25 working days to completeness plus 40 for assessment - 6-9 months in practice, helped by the pre-work. We answer every question round.25+40 wd statutory; 6-9 months with the pre-work.
05
Authorisation and passport
Entry in the Latvijas Banka register, ESMA notification and passporting into all 27 EU states - plus ongoing reporting we can keep running.Register entry, then all 27 EU states.
Quick facts
RegulatorLatvijas Banka
FrameworkMiCA + national act
Capital€50k / €125k / €150k
Statutory clock25 + 40 working days
In practice6-9 months
OfficePhysical Latvian office required
Reinvested profit0% tax
PassportAll 27 EU states
The statutory clock starts when Latvijas Banka deems the file complete - the pre-licensing consultation is where that completeness is really won.
On the ground in Latvia
Run from our Dubai office, with Latvian counsel.
Prifinance - Latvia desk
Riga · Latvia
Riga, Latvia
01
Latvian company formation
SIA incorporation, registered office, the required physical office and the corporate layer Latvijas Banka expects - structured for the application.SIA plus the required physical office.
02
The authorisation file
Programme of operations, AML pack, ICT/DORA documentation and capital planning - drafted by us and carried through the consultation and formal stages.Programme, AML, DORA - through both stages.
03
Regulator dialogue
We use the pre-licensing consultations properly, so the formal file matches what Latvijas Banka has already told us it wants to see.Consultations used to get the file right.
04
Reinvestment tax planning
The 0%-on-reinvested-profit position built into the structure from day one, with the distribution rate modelled for when you do pay out.0%-on-retained built into the structure.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Madeira
Portugal
Rua da Alegria 31, 1F
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of crypto companies in Latvia.
Latvia's deferred corporate tax is the headline: profit is taxed only when it leaves the company. Reinvested earnings sit at 0%, which is why it suits a business building rather than distributing.
0% on retained profit
Since 2018, Latvia taxes corporate profit only on distribution. Earnings kept and reinvested - active or passive in origin - are taxed at 0%, deferring corporate tax until you actually pay dividends.Corporate tax deferred until distribution.
20% when you distribute
Distributed profit is taxed at 20%, calculated 20/80 on the net distribution. You pay when value leaves the business, not while it compounds inside it - a genuine timing advantage for growth.20/80 on the payout - pay when value leaves.
A 15% alternative from 2026
From 2026, companies owned only by individuals can opt into a regime taxing distributions at 15% (15/85) plus a 6% personal tax on the individual. We check whether your ownership fits it.For individual-owned firms - eligibility checked.
VAT-exempt exchange
Crypto-to-fiat exchange is VAT-exempt as a financial service under the Hedqvist line - the 21% standard rate touches only ordinary supplies.Hedqvist line; 21% on ordinary supplies.
Substance keeps it clean
The reinvestment advantage rests on a genuinely resident, well-run company. The physical office and real management Latvia requires are exactly what makes the tax position defensible.The office and management make it defensible.
DAC8 reporting from 2026
EU-wide crypto reporting applies from January 2026 - CASPs report client transactions to tax authorities automatically. Compliance is built into your setup from day one.Automatic CASP reporting, EU-wide.
Tax summary
Retained/reinvested profit0%
Distributed profit20% (20/80)
Individual-owner regime15% + 6% (from 2026)
VAT on crypto exchangeExempt
Standard VAT21%
DAC8 reportingfrom 2026
*Figures as of 2026. The deferred-tax advantage depends on genuine substance - which is exactly what the licence requires anyway.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Latvian SIA, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, Latvijas Banka-authorised business.
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Latvia · Latvijas Banka
Launch your crypto project in Latvia with expert support.
Full-service assistance - from SIA registration to Latvijas Banka authorisation and ongoing compliance.
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Is Latvia the right fit for your project?
Our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.
Written assessment within 2-5 business days
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The Latvian crypto licence, answered.
What licence does a crypto business need in Latvia?+
CASP authorisation from Latvijas Banka under MiCA - required for exchange, brokerage, custody, transfer, advice and trading-platform services. Latvijas Banka absorbed the former FCMC in 2023 and is now the single financial regulator.
What is the consultation process?+
Latvijas Banka offers free, effectively unlimited pre-licensing consultations and runs authorisation as a staged dialogue - consultation, pre-application, formal file. You learn what a passing file looks like before you spend building it.
How much capital is required, and do I need an office?+
MiCA's three classes apply: €50,000, €125,000 or €150,000 by service scope. A physical office in Latvia is a stated requirement, so genuine local substance is part of the plan from the start.
How does the 0% tax on reinvested profit work?+
Since 2018 Latvia taxes corporate profit only when distributed. Earnings kept and reinvested are taxed at 0%; distributions are taxed at 20% (20/80). A scaling business can defer corporate tax until it pays dividends.
How long does authorisation take?+
The MiCA clock is 25 working days to completeness plus 40 for assessment. With the consultation done properly, well-prepared files typically land in 6-9 months rather than circling on completeness.
What substance does Latvijas Banka expect?+
A Latvian SIA with effective management and a real, physical office in the country: competent directors, a compliance function on the ground and systems that demonstrably run. That substance also underpins the tax position.
Why Latvia rather than another Baltic state?+
Estonia has a similar deferred-tax system; Latvia pairs it with a notably consultative regulator and a proven, active CASP register. If you want a dialogue-driven process and reinvestment-friendly tax, Latvia fits well.
Does the Latvian licence passport across the EU?+
Yes - one Latvijas Banka authorisation covers all 27 EU member states through MiCA passporting after a notification, with no re-licensing, from a cost-effective Baltic base.
What licence is needed?+
Latvijas Banka CASP authorisation under MiCA.
The consultation process?+
Free pre-licensing dialogue in staged form.
Capital and office?+
€50k-€150k by class; a physical office required.
The 0% tax?+
Reinvested profit 0%; distributions 20% (20/80).
How long?+
6-9 months with the consultation done properly.
Substance?+
SIA, directors, real office - underpins the tax too.
Why Latvia?+
Consultative regulator plus reinvestment-friendly tax.
EU passport?+
Yes - all 27 states by notification.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
“As a software development crew at FewMoreTaps OÜ, we've had the pleasure of working with Prifinance on some key financial moves.First of all, navigating the world of corporate banking and finance can be a maze, but Prifinance made it feel like a walk in the park. They helped us set up a corporate bank account without the hassle of jumping on a plane or drowning in paperwork. Everything was done remotely, smoothly…”
Google
“I had their assistance in company registration and I would recommend them. They were answering all my clarification during the process and offering all their supportThank you Daniel and Irinia”
Google
“We found PRIFINANCE COMPANYvia the Internet and asked for help in organizing the opening of their company in Estonia. PRIFINANCE COMPANY specialists helped us a lot with this. Their professional, competent approach and knowledge of their business left us with only the best impressions.”
Google
“I'm thrilled with my experience with PriFinance! They helped me obtain a crypto license in Estonia without any hassle. The team was super understanding and always available to answer my questions and assist. It was great to see how they put effort into preparing the documents to ensure everything went smoothly. I'm delighted with the outcome and highly recommend PriFinance to anyone looking to get a license…”
Google
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Latvian route fits your project and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right licence scope, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of Latvijas Banka or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.