Latvia: Estonian-Style CIT in the EU
An EU jurisdiction with an Estonian-style corporate tax: 0% on retained profits, 20% only on distribution. We register a SIA, plan the distribution model and handle EU banking and residency.
Setup time
2-4 weeks
Corporate tax
0% retained / 20% on distributed (25% effective)
Foreign ownership
100% permitted
Main legal form
SIA (LLC)
Futura Digital works with local partners and industry associations in Latvia.
Alexandra Kurdiumova
Co-founder, Futura Digital
Latvia gives EU founders an Estonian-style CIT (no tax on retained profits) combined with full EU access, a strong banking sector and one of the most competitive tax systems in the OECD.
Market
Why Founders Choose Latvia for Business Registration
0% CIT on retained profits
Corporate income tax is only paid on distributed profits (20%, effective 25% after coefficient), making retained earnings tax-free.
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Full EU access
Latvia is a full EU member with access to the parent-subsidiary, interest and royalties directives and the EU treaty network.
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Strong banking sector
A reformed banking sector after the 2018-2020 cleanup, now focused on EU clients with credible profiles.
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Russian-speaking infrastructure
A significant Russian-speaking professional services market eases setup for CIS founders.
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Who It's For
Who Should Consider Registering a Company in Latvia
IT and SaaS companies
Software and SaaS companies that want EU residence and a tax model rewarding reinvestment.
Holding and group structures
Groups using a Latvian SIA as an EU holding above operating subsidiaries.
Consulting and trading
Cross-border consulting and trading companies serving EU and CIS clients from an EU base.
CIS founders relocating
Russian-speaking founders who want an EU operating company with familiar professional services.
How we help you open a company in Latvia
One partner for all questions
Latvia's setup is technically simple, but bank onboarding, beneficial-owner due diligence and the distribution model need to be aligned with the founder's profile.
Futura Digital manages the entire journey — from initial structuring to a fully operational company with bank accounts and a resident team.
- Incorporation: SIA registration with the Enterprise Register, statutory address and statutes.
- Tax setup: CIT (deferred model) and VAT registration; distribution and reinvestment planning.
- Residency: EU Blue Card or temporary residence permit for founders and key staff.
- Banking: realistic shortlist of Latvian and EU banks given the profile and substance plan.
- Ongoing: monthly accounting, VAT, payroll, annual accounts and changes in the Enterprise Register.
Setup process
Partners
We work with selected local partners in Latvia to support contractors, payroll and compliance for distributed teams.
- Local partner support for contractor management, banking compliance and personal tax accounting.
- Practical solutions for paying a distributed team and contractors across jurisdictions.
FAQ
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the Task
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