A Canadian tech founder applied for a Latvian residence permit in March 2025 and received it in April -- 28 days from submission to approval. His SIA had EUR 55,000 in share capital and three employees. By May he was traveling to client meetings in Frankfurt, Milan, and Stockholm without a single additional visa application, all on the strength of a Latvian temporary residence permit and Schengen-zone mobility.

That speed and simplicity is atypical for European business immigration. Most EU countries take 3-6 months and require either large capital commitments (Portugal's EUR 500,000+, Spain's EUR 500,000+) or highly specific qualifications. Latvia's threshold -- EUR 50,000 in company investment plus demonstrated tax payments -- is among the most accessible in the EU.

Here is what the 2026 rules actually require.

The Two Qualifying Paths

Latvia offers a temporary residence permit (TRP) for non-EU/EEA business owners through two main routes:

Path 1: Company Investment (Most Common)

Your Latvian SIA must meet both criteria:

Share capital or total investment of at least EUR 50,000
The company has paid at least EUR 40,000 in taxes to the Latvian state budget during the preceding calendar year

The EUR 50,000 can be share capital, loans to the company, or capital expenditure -- the key is that it represents genuine investment in the Latvian business. The EUR 40,000 tax threshold includes CIT, VAT, VSAOI (social contributions), and PIT withheld from employee salaries. For a company with 3-5 employees on typical Latvian salaries, hitting EUR 40,000 in combined taxes is achievable within the first full year of operation.

Path 2: Job Creation

Your company employs at least 5 people who are Latvian citizens or EU/EEA residents on full-time employment contracts. No minimum investment threshold applies under this path, but the payroll and social contribution costs for 5 employees effectively require a similar financial commitment.

In practice, about 80% of business-based TRP applications use Path 1. Path 2 serves companies that may not have EUR 50,000 in capital but have built a genuine local team.

What the Permit Gives You

A Latvian TRP based on business activities provides:

Right to reside in Latvia for the duration of the permit (up to 5 years)
Schengen-zone travel -- 90 days per 180-day period across all 27 Schengen countries without additional visas
Right to work in your own company and to be employed by other Latvian companies
Path to permanent residence after 5 years of continuous residence
Family reunification -- your spouse and minor children can apply for their own TRPs based on your permit

The permit does not grant automatic citizenship. Latvia's naturalization requirements include a Latvian language exam and 10 years of permanent residence -- a longer road, but the TRP is the first step.

Application Process

Step 1: Ensure your company qualifies. Verify that the EUR 50,000 investment and EUR 40,000 tax payment thresholds are met. Request a tax payment confirmation from VID if needed.

Step 2: Prepare your documents.

Valid passport (minimum 6 months validity beyond intended stay)
Application form from the Office of Citizenship and Migration Affairs (PMLP)
Company registration certificate and annual report
Proof of EUR 50,000 investment (bank statements, share capital confirmation, auditor's letter)
VID confirmation of EUR 40,000+ tax payments
Proof of accommodation in Latvia (rental contract, property deed)
Health insurance valid in Latvia (minimum EUR 30,000 coverage)
Criminal record certificate from your country of citizenship (apostilled, not older than 3 months)
Photos (biometric format)

Step 3: Submit to PMLP. Applications can be submitted at the PMLP in Riga, at Latvian embassies abroad, or in some cases through authorized representatives. The application fee is approximately EUR 100-200, depending on processing speed.

Step 4: Biometrics. You will need to provide fingerprints for the residence card. This can be done at the PMLP in Riga or at certain embassies.

Step 5: Wait for the decision. Standard processing: 30 days. In practice, straightforward applications are often decided within 2-3 weeks. Complicated cases (unusual source of wealth, complex corporate structures) may take up to 90 days.

Step 6: Collect your residence card. The physical card is produced after approval and must be picked up at the PMLP in Riga (or mailed to certain embassies).

Timing Strategy

The EUR 40,000 tax payment requirement creates a chicken-and-egg problem: you need the company to have paid taxes before you can apply for the TRP, but you may need the TRP to be in Latvia to run the company effectively.

The practical solution: Many entrepreneurs start their Latvian SIA while visiting on a 90-day Schengen short-stay. During those first months, they hire staff, begin operations, and start generating the tax base. After the first full calendar year -- once the EUR 40,000 tax threshold is met -- they apply for the TRP.

During the interim period, you can manage the company remotely and visit Latvia on regular short-stay entries (90 days per 180-day period). Some entrepreneurs use a D-type national visa (available for business purposes) to extend their initial stay beyond 90 days while building toward the TRP threshold.

Renewal

The TRP is renewable. At renewal, you must demonstrate that the company continues to meet the qualifying criteria -- the EUR 50,000 investment is still in place and the EUR 40,000 annual tax payment continues.

Renewal applications should be submitted at least 30 days before the current permit expires. The process is simpler than the initial application since PMLP already has your file.

After 5 Years: Permanent Residence

After 5 years of continuous residence in Latvia on a TRP (with absences not exceeding 12 months total, or 6 months at a stretch), you can apply for a permanent residence permit (PRP). The PRP has no expiration date, though the physical card must be renewed every 5 years.

Permanent residents enjoy most of the rights of Latvian citizens except voting in national elections. They can work without restrictions, access public healthcare, and travel freely within the Schengen zone.

Costs Summary

| Item | Cost | |---|---| | PMLP application fee | EUR 100-200 | | Document preparation (translations, apostilles) | EUR 300-800 | | Legal assistance | EUR 1,000-2,500 | | Health insurance (annual) | EUR 500-1,500 | | Minimum company investment required | EUR 50,000 | | Minimum annual tax payments required | EUR 40,000 |

The EUR 50,000 is not a fee -- it is an investment in your own company. You retain full ownership of these funds within the business.

Pitfalls to Watch

Do not inflate share capital artificially. PMLP and VID cross-reference. If you inject EUR 50,000 into share capital but the company has no operations, no employees, and no revenue, the application may be rejected or the permit revoked on renewal.

Do not let tax payments slip below EUR 40,000. If your company shrinks or restructures and annual tax payments drop below the threshold, your TRP renewal is at risk.

Keep your Latvian address current. PMLP must be notified of any address change within 30 days. Using a friend's address or an expired rental contract can create legal complications.

Budget for the family. If your spouse and children will join you, each family member needs their own TRP application, health insurance, and supporting documents. Plan for EUR 1,000-2,000 per additional family member in application costs.

SIA "CORVUS ACCOUNTING & TAX" assists clients with residence permit applications alongside company formation and accounting services. For a consultation on your eligibility and the optimal timing strategy, get in touch.

Residence Permit Through Business in Latvia (2026 Rules)