Licensed Accountant Requirement in Latvia (2026 Rules)

Until recently, anyone in Latvia could call themselves an accountant and handle a company's books — no exam, no certification, no oversight. A retired engineer, a university student, the owner's spouse with a spreadsheet and good intentions. As long as the declarations were filed, nobody asked about qualifications.

That changed in 2024, when Latvia introduced a requirement for companies exceeding certain size thresholds to use a licensed (certified) accountant. The shift is significant, and many business owners are still unaware that their current bookkeeping arrangement may no longer be compliant.

What the Law Requires

Starting from 2024, companies that exceed defined thresholds — based on revenue, balance sheet total, and average number of employees — must ensure that the person responsible for their accounting holds a valid professional certificate.

The thresholds align with the criteria used to classify companies as medium or large under the Law on Annual Reports and Consolidated Annual Reports. If your company exceeds two of the three threshold criteria for two consecutive years, the licensing requirement applies.

This means:

• Small companies below all thresholds: no mandatory licensing requirement (though using a certified professional is still recommended)
• Companies crossing the thresholds: must have a licensed accountant — whether employed in-house or engaged through an outsourced service provider

The certificate is issued by the professional body designated by Latvian law. To obtain it, the accountant must pass examinations covering financial accounting, tax law, management accounting, and professional ethics. Continuing education requirements ensure the certification stays current.

What This Means for Your Business

If your company is small and well below the thresholds, the licensing requirement does not directly affect you — yet. But two things to keep in mind.

First, companies grow. A SIA that is comfortably under the thresholds in 2026 might cross them in 2027 or 2028. If your accountant is not licensed, you'll need to find a new one under time pressure.

Second, VID has begun checking. During audits and desk reviews, inspectors have started asking for proof of the accountant's qualification when the company size warrants it. Non-compliance is treated as an administrative violation.

How to Verify a License

Before engaging an accountant or accounting firm, ask for their certification number and verify it through the professional body's public register. A legitimate professional will provide this information without hesitation.

If you're working with an accounting firm, confirm that the person who will be directly responsible for your company's accounts (not just the firm's managing director) holds the license. A firm can advertise a licensed partner while assigning your work to an unlicensed junior — which does not satisfy the requirement.

Questions to ask:

• "Who specifically will handle my company's accounting?"
• "Does that person hold a valid accountant's license?"
• "Can you provide the certification number for verification?"

The Practical Impact

The licensing requirement has tightened the market. Some sole practitioners who operated for years without formal certification have either obtained the license, partnered with certified colleagues, or exited the market. For business owners, this is broadly positive — it raises the baseline quality of accounting services.

For outsourced accounting firms, it means at least one team member per client must be certified. Reputable firms have been hiring and training accordingly. Less established operations have not, and some continue to serve clients in violation of the requirement.

The bottom line: if your company is above the thresholds, verify your accountant's license. If it's below, choose a certified professional anyway — you'll need one eventually, and starting early avoids a disruptive mid-year switch.

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Our team includes licensed professionals who meet every threshold requirement under Latvian law. Whether your company needs a licensed accountant today or is approaching the thresholds, we provide the credentialed service that keeps your annual report legally valid.

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