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 an investment license in Latvia.
The EU licence with no entry fee: authorisation as an investment brokerage firm from Latvijas Banka - advice, order handling, portfolio management and dealing on the IFD tiers from €75,000, free pre-licensing consultations as institutional policy, a 25-day completeness check and six-month examination, and the passport into thirty states on grant.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Latvia in brief
The supervisor that consults before it examines.
Latvia authorises investment firms through its central bank - Latvijas Banka absorbed the financial supervisor in 2023 - under the Investment Brokerage Firms Law, the local IFD-era framework. Initial capital follows the union's tiers by service set: €75,000 for advisory and order-handling models that hold no client assets, €150,000 as the general tier, €750,000 for dealing on own account. The process design is the differentiator: pre-licensing consultations are free and institutional, no application fee is charged, the completeness check runs 25 working days and the substantive examination six months - with post-licensing supervision funded by a levy of up to 1.4% of average quarterly gross income, minimum €5,000 a year.
For asset-side firms the corporate system compounds the case: Latvia runs the Estonian-style model - 0% tax on retained profits, a 20/80 charge only on distribution, so a manager's fee income grows untaxed while the business reinvests. Riga adds a genuinely bilingual professional market, Baltic cost levels for key functions and premises, and the same thirty-state passport as any EU licence. For boutique portfolio managers, advisory houses and brokerage groups optimising total cost of licence, Latvia is the union's quiet value play, and the supervisor's pre-consultation round, used deliberately, de-risks the examination before it begins. We run the file end to end from Riga.
The no-fee EU licence: IBS authorisation from Latvijas Banka - IFD tiers €75k/€150k/€750k, free pre-licensing consultations, 25-day check + 6-month exam, supervision levy min €5,000/year post-licence.
0% on retained profits, 20/80 on payout - the compounding system at Baltic cost. Built end to end from Riga.
The two builds
The advisory and management firm - or the dealer.
One licence, IFD-tiered: advisory and portfolio-management firms at €75,000-€150,000, dealing firms at €750,000. We fix the service set first, then build once.
The advisory/management IBS - or the €750k dealer.
01 - ADVISORY · MANAGEMENT IBS
The asset-side firm
The wealth permissions: investment advice, order reception-transmission, execution and discretionary management - €75,000 without client assets, €150,000 with. Examined once, passported across the union.
The wealth permissions: investment advice, order reception-transmission, execution and discretionary management - €75,000 without client assets, €150,000 with. Examined once, passported across the union.
- ✓Advice · RTO · execution
- ✓Discretionary portfolio management
- ✓€75,000 - no client assets
- ✓€150,000 - general tier
- ✓EU passport into 30 states
- ✓0% tax while profits compound
02 - DEALING IBS
€750,000 initial capitalThe dealing firm
The market-facing model: dealing on own account at €750,000 with the IFD prudential stack. The full-spectrum firm under the central bank, on the same passport.
Dealing on own account at €750,000 with the IFD stack. Same no-fee application, same passport, upgrade path built in.
- ✓Dealing on own account
- ✓€750,000 initial capital
- ✓K-factor prudential machinery
- ✓Same no-fee application
- ✓Same 30-state passport
- ✓Upgrade path from lighter tiers
Costs and timelines are confirmed for your case before any work begins. Latvia charges no application fee; the supervision levy (min €5,000/year) applies post-licence. Capital and substance are itemised in your quote.
Why Latvia
Total cost of licence, minimised.
Latvia strips the entry economics to capital and substance, and tells you the questions before you file.
✓
No application fee
The licence application is free and pre-licensing consultations are institutional policy. Entry costs sit where they belong.Costs sit in capital.
✓
A mapped procedure
25 working days to completeness, six months of examination. A defined clock run by a single institution.25 days + 6 months.
✓
Pre-consultation as strategy
The supervisor's questions arrive before filing, when they are cheap. We script the sessions deliberately.Cheap questions first.
✓
0% on retained profits
The 20/80 system taxes only distributions. Fee income compounds untaxed while the firm grows.Compound untaxed.
✓
Baltic bench economics
Key functions, premises and services at Riga cost. Substance that satisfies without western overheads.Substance priced right.
✓
The same passport
Thirty EEA states from one Riga licence. Identical legal effect to the union's expensive capitals.30 states, full effect.
How it compares
How Latvia differs from other routes.
Numbers next to numbers: the leanest entry economics in the union. With a full-length examination to pass.
Latvia vs other jurisdictions
| Feature |  Latvia | Other jurisdictions |
|---|---|---|
| Application fee | None | €1k-£30k spread |
| Capital | €75k-€750k IFD tiers | Same tiers, other terms |
| Process | Pre-consulted, 6-month exam | Formal correspondence |
| Tax while building | 0% retained · 20/80 | Headline rates from day one |
Application fee
LatviaNone
Other jurisdictions€1k-£30k spread
Capital
Latvia€75k-€750k IFD tiers
Other jurisdictionsSame tiers, other terms
Process
LatviaPre-consulted, 6-month exam
Other jurisdictionsFormal correspondence
Tax while building
Latvia0% retained · 20/80
Other jurisdictionsHeadline rates from day one
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Latvia | IBS - Latvijas Banka | 0% retained · 20/80 | IFD tiers, no state fee |
 Estonia | Investment firm - FI | 0% retained · 22/78 | IFD tiers, statutory clock |
 Lithuania | FBF - Bank of Lithuania | 16% CIT | IFD tiers, single regulator |
 Cyprus | CySEC CIF | 12.5% · 15% large | IFD tiers, practised cluster |
LatviaLicense typeIBS - Latvijas Banka
Taxation0% retained · 20/80
RequirementsIFD tiers, no state fee
EstoniaLicense typeInvestment firm - FI
Taxation0% retained · 22/78
RequirementsIFD tiers, statutory clock
LithuaniaLicense typeFBF - Bank of Lithuania
Taxation16% CIT
RequirementsIFD tiers, single regulator
CyprusLicense typeCySEC CIF
Taxation12.5% · 15% large
RequirementsIFD tiers, practised cluster
Before you apply
Requirements for the Latvian licence.Requirements for the licence.
Latvijas Banka examines the file it helped you shape. The checklist below is what a passing application contains.
01
Latvian company. Incorporated for the licence with genuine management in Latvia.
02
Initial capital - €75,000, €150,000 or €750,000 by service set, evidenced with source of funds.
03
Fit-and-proper shareholders. Qualifying holdings vetted to UBO level.
04
Management bench. Board members and key-function heads assessed individually.
05
Business plan and forecasts. Services, client base and three-year numbers the examiner can interrogate.
06
Governance documentation. Structure, internal control and risk architecture per the Law.
07
Client-asset arrangements. Segregation and safeguarding where the service set holds them.
08
Prudential machinery. IFD capital and reporting computations live from day one.
09
AML/CFT programme. Latvian law compliance with a named MLRO.
10
Substance. A real Riga operation the supervisor can visit.
01
Latvian company, run locally.
02
Capital per IFD tier, sourced.
03
Holdings vetted to UBO.
04
Assessable management bench.
05
Interrogable business plan.
06
Governance documented.
07
Client assets safeguarded.
08
Prudential machinery live.
09
AML with named MLRO.
10
Substance in Riga.
Reflects the Investment Brokerage Firms Law and IFR/IFD as of 2026. Pre-licensing consultation is free and used deliberately.IBS Law + IFR/IFD, as of 2026.
How it works
From first call to the Latvijas Banka register.
01
Pre-consultation
Service set, tier and the free supervisor dialogue. The file shaped before it exists.Dialogue first, free.
02
Company and people
Latvian entity, capital evidenced and the bench examined individually.Bench examinable.
03
The application
Business plan, governance and policies. Complete at filing; the 25-day check should find nothing.Complete, check-clean.
04
Examination
The six-month review with pre-answered questions. Few surprises remain.6 months, few surprises.
05
Licence and passporting
Register entry, EEA notifications, banking live. Thirty markets, no entry fee paid.No entry fee paid.
Quick facts
RegulatorLatvijas Banka
Application feeNone
Advisory tier€75,000
General tier€150,000
Dealing tier€750,000
Examination6 months + 25 days
Supervision levymin €5,000/year
Tax0% retained · 20/80
The pre-consultation round is free and decisive. The questions answered before filing are the cheapest you will ever answer.
On the ground in Latvia
Run from our Riga office.
Prifinance - Latvia
Riga · Latvia
Riga, Latvia
01
Company and capital
Latvian entity and capital structured to the service set. Built for the licence from day one.Built to the set.
02
The Latvijas Banka file
Pre-consultation strategy, business plan and governance pack. Shaped with the supervisor, then defended through examination.Pre-consulted, defended.
03
People and substance
Management and key functions hired at Baltic cost. Substance that satisfies without excess.Baltic-cost sourcing.
04
Passporting and launch
EEA notifications, banking and custody sequenced with the licence. Thirty markets from Riga.30 states at launch.
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 investment firms in Latvia.
The Estonian-style system at a lower distribution rate. Built for firms that compound.
0% on retained profits
Fee and performance income compounds untaxed while the firm reinvests. The boutique's structural advantage.The compounding system.
20/80 on distributions
The corporate charge falls only on payout. Two points below Estonia's 22/78, at timing the founders control.Below Estonia's 22/78.
No separate dividend WHT
The distribution charge is the tax in the standard case. One clean layer.No extra WHT.
Baltic cost base
Salaries and services at Riga prices. The effective cost of substance is its own tax saving.Riga cost levels.
VAT with finance exemptions
Core investment services sit outside VAT; the 21% rate touches overheads only.21% on overheads.
Treaty network 60+
A solid base across the EU and CIS corridors. Group structures above the firm model cleanly.EU + CIS corridors.
Tax summary
Retained profits0%
Distributed profits20/80
Dividend withholdingNone additional
VAT on servicesExempt core · 21%
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 firm.
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Latvia · Latvijas Banka
Launch your investment firm 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 investment licence: the practical answers.
What licence does an investment firm need in Latvia?+
Authorisation as an investment brokerage firm from Latvijas Banka under the Investment Brokerage Firms Law - the MiFID licence covering advice, RTO, execution, portfolio management and dealing.
What capital is required?+
The IFD tiers: €75,000 for advisory and order-handling models without client assets, €150,000 as the general tier, €750,000 for dealing on own account.
Is the application really free?+
Yes - no state fee is charged for the licence application, and pre-licensing consultations are free institutional policy. Post-licence, supervision is funded by a levy of up to 1.4% of average quarterly gross income, minimum €5,000 a year.
How long does licensing take?+
A 25-working-day completeness check plus a six-month substantive examination - realistically 7-10 months end to end, shorter when the pre-consultation round has answered the hard questions early.
What are the pre-licensing consultations?+
Latvijas Banka meets prospective applicants before filing to discuss the model, capital and documentation - the supervisor's questions at their cheapest. We script these sessions as core strategy.
Does the licence passport across the EU?+
Yes - the full MiFID passport into 30 EEA states by notification, identical in effect to any member-state licence.
How are Latvian investment firms taxed?+
0% on retained profits with the 20/80 charge only on distribution - fee income compounds untaxed. VAT-exempt core services and a 60+ treaty network complete the frame.
What substance does the supervisor expect?+
A genuine Riga operation: resident management presence, staffed key functions and premises the central bank can visit - at Baltic cost levels that make real substance economic.
Latvia or Estonia for the Baltic base?+
Twins with different levers: Estonia binds the clock in statute at a €1,000 fee and 22/78; Latvia charges nothing, consults first and distributes at 20/80. Cap-table and calendar decide - we model both.
Why Prifinance for Latvia?+
A Riga office, the pre-consultation round used as strategy and Baltic licensing craft from our Tallinn headquarters next door - the region is home ground.
What licence?+
IBS from Latvijas Banka.
Capital?+
€75k/€150k/€750k.
Fee?+
None; levy after licensing.
How long?+
25 days + 6-month exam.
Consultations?+
Free, institutional, scripted.
Passport?+
30 EEA states.
Taxes?+
0% retained; 20/80.
Substance?+
Real, Baltic-priced.
Or Estonia?+
Twins - we model both.
Why you?+
Home region, next door HQ.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
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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.