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 forex license in Latvia.
The Baltic MiFID licence with no entry fee: authorisation as an investment brokerage firm from Latvijas Banka - IFD capital of €75,000 to €750,000 by model, free pre-licensing consultations, a 25-day completeness check and six-month examination, and the EU passport into 30 states on approval.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Latvia in brief
The MiFID licence without the entry fee.
Latvia licenses forex and CFD brokerage under the Investment Brokerage Firms Law, supervised since 2023 by Latvijas Banka - the central bank absorbed the financial supervisor, so one institution now runs licensing, prudential oversight and resolution. Initial capital follows the EU's IFD tiers by service set: €75,000 for brokers that neither deal on own account nor hold client assets, €150,000 as the general tier, €750,000 for dealing on own account. The process is unusually candid: pre-licensing consultations are free of charge, no application fee is levied, the completeness check runs 25 working days and the substantive examination six months. After licensing, supervision is funded by a levy of up to 1.4% of average quarterly gross transaction income, minimum €5,000 a year.
Why brokers look at Riga: the same MiFID passport as any EU licence at one of the lowest entry costs in the union, a supervisor that talks to applicants before they file, Estonian-style corporate tax (0% on retained profits, 20/80 on distribution), and a financial centre used to serving Baltic, Nordic and CIS-diaspora flow in Russian, English and Latvian. We run the file from our Riga office, with the pre-consultation round used deliberately: the questions the supervisor asks before filing are the cheapest questions you will ever answer.
Investment brokerage firm licence from Latvijas Banka: IFD capital €75k/€150k/€750k, no application fee, free pre-licensing consultations, 25-day completeness check + 6-month examination, supervision levy min €5,000/year.
The same EU passport at one of the lowest entry costs in the union - 0% tax while profits stay in. We run the file from Riga.
The two routes
Dealing on own account - or the agency model.
One licence, IFD-tiered: the principal model at €750,000, agency and matched-principal models at €75,000-€150,000. We fix the model first, then build once.
Own-account dealing at €750k - or agency at €75k-€150k.
01 - DEALING ON OWN ACCOUNT
The principal model
The full market-maker licence: dealing on own account in CFDs and FX derivatives at €750,000 initial capital. K-factor capital, client asset rules and the EU retail conduct stack built in.
The full market-maker licence: dealing on own account in CFDs and FX derivatives at €750,000 initial capital. K-factor capital, client asset rules and the EU retail conduct stack built in.
- ✓Dealing on own account - market making
- ✓€750,000 initial capital
- ✓K-factor + fixed-overheads capital
- ✓Client asset segregation rules
- ✓ESMA-standard retail conduct - 30:1
- ✓MiFID passport into 30 states
02 - AGENCY · MATCHED PRINCIPAL
€75k-€150k initial capitalThe agency models
Order reception-transmission, execution and portfolio services without own-account dealing - €75,000 where no client assets are held, €150,000 as the general tier. The same passport at a fraction of the balance sheet.
RTO/execution without own-account dealing; €75k no client assets, €150k general; same passport; upgrade path.
- ✓Reception, transmission, execution
- ✓€75,000 - no client assets held
- ✓€150,000 - general tier
- ✓Same MiFID passport
- ✓Upgrade path to own-account dealing
- ✓Same conduct discipline
Costs and timelines are confirmed for your case before any work begins. Latvia charges no licence application fee; supervision is levied post-licence (min €5,000/year). Capital and substance costs are itemised in your quote.
Why Latvia
The quiet value play of EU licensing.
Latvia prices the same passport lower. In fees, in dialogue, and in tax while you build.
✓
No application fee
Latvijas Banka charges nothing to apply and consults free before filing. Entry costs sit in capital and substance, where they belong.Costs sit in capital.
✓
A supervisor that talks first
Free pre-licensing consultations are institutional policy. The file that reaches examination has already survived the supervisor's questions.Free pre-consultations.
✓
Defined procedural clock
25 working days to completeness, six months of examination. A mapped process with a single institution running licensing and supervision.25 days + 6 months.
✓
0% tax while you build
The Estonian-style system: retained profits untaxed, 20/80 only on distribution. The build phase compounds gross.20/80 only on payout.
✓
The same EU passport
An IBS licence notifies into 30 EEA states with identical legal effect to any MiFID licence. The product is the passport, not the postcode.30 states, full effect.
✓
Baltic cost base
Riga's talent, office and compliance costs run well below Western Europe. Substance that satisfies the supervisor without the London price tag.Substance priced right.
How it compares
How Latvia differs from other routes.
The comparison in plain terms: Latvia competes on total cost of licence. Same passport, lighter bill.
Latvia vs other jurisdictions
| Feature |  Latvia | Other jurisdictions |
|---|---|---|
| Regime | IBS Law - MiFID II | MiFID desks or offshore |
| Initial capital | €75k-€750k by model | US$0-2M spread |
| Application fee | None | €1k-HK$130k spread |
| Tax while building | 0% on retained profits | Headline rates from day one |
Regime
LatviaIBS Law - MiFID II
Other jurisdictionsMiFID desks or offshore
Initial capital
Latvia€75k-€750k by model
Other jurisdictionsUS$0-2M spread
Application fee
LatviaNone
Other jurisdictions€1k-HK$130k spread
Tax while building
Latvia0% on retained profits
Other jurisdictionsHeadline rates from day one
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Latvia | Investment brokerage firm | 0% · 20% distributed | IFD €75k-€750k, no state fee |
 Estonia | Investment firm - FI | 0% · 22% distributed | IFD €75k-€750k, statutory clock |
 Cyprus | CySEC CIF | 15% CIT (2026) | IFD €75k-€750k, EU passport |
 Bulgaria | Investment intermediary | 10% CIT · euro area | IFD tiers, FSC licence |
LatviaLicense typeInvestment brokerage firm
Taxation0% · 20% distributed
RequirementsIFD €75k-€750k, no state fee
EstoniaLicense typeInvestment firm - FI
Taxation0% · 22% distributed
RequirementsIFD €75k-€750k, statutory clock
CyprusLicense typeCySEC CIF
Taxation15% CIT (2026)
RequirementsIFD €75k-€750k, EU passport
BulgariaLicense typeInvestment intermediary
Taxation10% CIT · euro area
RequirementsIFD tiers, FSC licence
Before you apply
Requirements for the Latvian licence.Requirements for the licence.
Latvijas Banka examines the file it helped you shape in pre-consultation. The checklist below is what a passing application contains.
01
Latvian company. With its mind and management in Latvia.
02
Initial capital - €75,000, €150,000 or €750,000 by service set, evidenced and sourced.
03
Fit-and-proper management. Board members with investment-business track records, assessed individually.
04
Transparent ownership. Qualifying holdings disclosed and vetted to UBO level, with proof of capital origin.
05
Business plan and financial forecasts. The model, flow economics and three-year numbers the examiner can interrogate.
06
Governance and internal control. Organisational structure, risk management and internal audit documented.
07
Client asset arrangements. Segregation and safeguarding designed before launch where assets are held.
08
EU retail conduct - 30:1 leverage caps, negative balance protection and margin close-out engineered into the product.
09
AML/CFT framework. KYC, monitoring and reporting with a named compliance owner.
10
Substance. Real Riga presence: local management, staff and systems the supervisor can visit.
01
Latvian company, run locally.
02
Capital per IFD tier.
03
Fit-and-proper board, vetted.
04
Holdings to UBO, capital sourced.
05
Interrogable business plan.
06
Governance and audit documented.
07
Client asset safeguards.
08
30:1 conduct engineered in.
09
AML with named owner.
10
Substance in Riga.
Reflects the Investment Brokerage Firms Law and IFR/IFD as of 2026. Pre-licensing consultation with Latvijas Banka is free and used deliberately.IBS Law + IFR/IFD, as of 2026.
How it works
From first call to the Latvijas Banka register.
01
Model and pre-consultation
Service set, capital tier and the free supervisor dialogue. The file shaped before it exists.Free supervisor dialogue first.
02
Company and people
Latvian entity, capital evidence and the board members examined individually.Entity, capital, board.
03
The application file
Business plan, governance, client-asset and AML documentation. Complete at filing; the 25-day check should find nothing.Complete - 25-day check clean.
04
Examination
The six-month substantive review, question rounds answered. With pre-consultation, few surprises remain.6 months, few surprises.
05
Licence and passporting
Register entry, EEA notifications, banking live - 30 states from one Riga licence.30 states from Riga.
Quick facts
RegulatorLatvijas Banka
Initial capital - light€75,000
General tier€150,000
Own account€750,000
Application feeNone
Completeness check25 working days
Examination6 months
Supervision levymin €5,000/year
The pre-consultation round is free and decisive. The questions answered before filing are the cheapest you will ever answer. We use it deliberately.
On the ground in Latvia
Run from our Riga office.
Prifinance - Latvia
Riga · Latvia
Riga, Latvia
01
Latvian company formation
Incorporation, capital structuring and the corporate layer the supervisor expects. Built for the licence from day one.Built for the licence.
02
The Latvijas Banka file
Pre-consultation strategy, business plan, capital models and governance pack. Drafted end to end and defended through examination.Pre-consulted, defended.
03
People and substance
Local management, compliance and AML officers sourced at Baltic cost. Substance that satisfies without excess.Baltic-cost sourcing.
04
Passporting and launch
EEA notifications, banking and liquidity introductions sequenced with the licence. The EU go-live as one programme.30 states sequenced.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Good to know
Taxation of forex brokers in Latvia.
The Estonian-style system at a lower distribution rate: nothing retained, 20/80 paid out.
0% on retained profits
Corporate income tax applies only on distribution. The build phase, buffers and platform investment compound untaxed.Build phase compounds.
20/80 on distributions
Dividends carry the 20/80 charge (20% of the gross). Two points below Estonia's 22/78, paid only when you pay out.Below Estonia's 22/78.
No separate dividend WHT
The distribution tax is the tax in the standard case - no additional withholding layer on dividends.One layer only.
VAT 21% - finance exempt
Financial services are VAT-exempt supplies; the 21% standard rate touches only ordinary overheads.21% only on supplies.
Baltic cost base
Salaries, premises and professional services price well below Western Europe. The effective cost of substance is a tax of its own, and here it is low.Baltic cost base.
Treaty network 60+
A solid treaty base across the EU and CIS corridors. Group structures above the Latvian entity model cleanly.EU + CIS corridors.
Tax summary
Retained profits0%
Distributed profits20/80
VAT on financial servicesExempt · 21% standard
Dividend withholdingNone additional
Tax treaties60+
*Figures as of 2026 per the State Revenue Service. Group and founder-level outcomes are modelled per structure.
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 company, 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, licensed broker.
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Latvia · Latvijas Banka
Launch your forex project in Latvia with expert support.
Full-service assistance - from incorporation to the IBS licence, passporting and ongoing compliance - run through our Riga office.
Get a consultation →Free legal opinion
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
Request a free conclusion →FAQ
The Latvia forex licence - the questions we hear.
What licence does a forex broker need in Latvia?+
Authorisation as an investment brokerage firm from Latvijas Banka under the Investment Brokerage Firms Law - CFDs and FX derivatives are MiFID financial instruments, with the service set defining the capital tier.
What capital is required?+
The IFD tiers: €75,000 for brokers that neither deal on own account nor hold client assets, €150,000 as the general tier, €750,000 for dealing on own account - with risk-based requirements layered above.
Is there really no application fee?+
Correct - Latvijas Banka charges no fee for the licence application, and pre-licensing consultations are free. Post-licence, supervision is funded by a levy of up to 1.4% of average quarterly gross transaction income, minimum €5,000 a year.
How long does licensing take?+
The completeness check runs 25 working days and the substantive examination six months from a complete file - realistically 7-10 months end to end including preparation, less when the pre-consultation round is used well.
What are the pre-licensing consultations?+
Latvijas Banka meets prospective applicants free of charge to discuss the model, capital and file before submission - institutional policy, not a favour. We script these sessions deliberately; they de-risk the examination.
Does the licence passport across the EU?+
Yes - the full MiFID passport into 30 EEA states by notification, identical in legal effect to any other EU licence. We manage the notifications as part of launch.
How are Latvian brokers taxed?+
0% corporate tax on retained profits; distributions carry the 20/80 charge. VAT-exempt financial services, no additional dividend withholding, and a 60+ treaty network.
What retail conduct rules apply?+
The EU standard: leverage capped 30:1 to 2:1 by asset class, negative balance protection, margin close-out and marketing restrictions - engineered into the product from day one.
Latvia or Estonia for a Baltic MiFID base?+
Twins with different accents: Estonia binds the supervisor to a statutory 2-6-month clock and charges €1,000; Latvia charges nothing, consults first and examines for six months. Tax is 22/78 vs 20/80. We model both against your cap table and calendar.
Why Prifinance for Latvia?+
A Riga office, the pre-consultation round scripted as strategy, and Baltic licensing craft from our Tallinn headquarters next door - the region is home ground.
What licence?+
Investment brokerage firm - LB.
Capital?+
€75k/€150k/€750k IFD tiers.
Fee?+
None; levy after licensing.
How long?+
25 days + 6 months exam.
Pre-consultation?+
Free, institutional, scripted.
EU passport?+
Yes - 30 EEA states.
Taxes?+
0% retained; 20/80 payout.
Retail rules?+
ESMA 30:1, NBP, close-out.
Or Estonia?+
Twins - we model both.
Why you?+
Baltics are home ground.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
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Google
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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.