Latvia Startup Ecosystem and Startup Visa 2026 — A Founder's Guide

Latvia's startup ecosystem has experienced remarkable growth in recent years — not only in the number of companies but also in their economic contribution. In 2026, the country continues to position itself as one of the most attractive EU footholds for technology founders from around the world. This guide brings together the key data, support instruments, startup visa requirements, and practical steps every founder considering entering the Latvian ecosystem needs to know.

The Latvian Startup Ecosystem in Numbers

According to the Latvian Startup Association "Startin.LV" annual study, there were 569 startups operating in Latvia at the end of 2025 — an 11% increase year-on-year. These companies paid a total of €110.4 million in taxes to the state budget in 2025, up 25.5% from 2024.

Employment in the sector reached 5,101 people, growing by 7.4% compared to 2024. The average gross salary in the startup sector was approximately €2,820 per month — significantly above the national average, underscoring the sector's high productivity and ability to attract talent.

Key ecosystem metrics at the start of 2026:

• 569 active startups, generating €610.5 million in turnover in 2024 (+16.2% vs 2023)

• 5,101 employees, average salary ~€2,820 gross

• €110.4 million in taxes paid in 2025

• €78 million in investment in 2025 — a 127% surge year-on-year

• 81.2% of startups are based in Riga

Sector Breakdown

Latvia's startup landscape is diverse, with clear leadership in several domains:

• Software (SaaS, B2B): 60.3% of startups provide software solutions

• B2B sector: 418 companies (73.5%) serve business clients

• B2C sector: 217 companies (38.1%) serve end consumers

• Deeptech: 150 companies (26% of the ecosystem) — the fastest-growing segment, achieving €149 million in turnover in 2024 and paying €35.4 million in taxes (+84% YoY)

• Fintech: 127 fintech companies, generating €369 million in turnover in 2024 and employing over 3,600 people

Latvia's startup sector has grown into a major driver of the national economy. Fourteen mature companies exceeded the €10 million turnover threshold in 2024, jointly accounting for 62% of the sector's total turnover — proof that Latvia is producing companies capable of scaling and competing internationally.

The Startup Visa — Residence Permit for Third-Country Founders

Latvia's "startup visa" is legally a temporary residence permit (TRP) that allows third-country nationals (outside the EU/EEA) to live and work in Latvia while developing an innovative, technology-driven, and scalable business. The permit is granted for a period of up to 36 months (3 years).

Who Is This Visa For

The programme operates differently from classic "investor" residency schemes — what matters most is the nature of your business, not a large capital commitment.

Main requirements:

• You must be a citizen outside the EU/EEA

• You must have an innovative, technology-based, and scalable business idea. For example: SaaS products, fintech solutions, artificial intelligence, data analytics, cybersecurity, deep tech, biotech, clean-tech, green economy initiatives

• Projects that are only at the idea stage are no longer accepted in 2026. At the time of application, your company must be actively operating — with bank transactions and payments from real customers

• A clean criminal record and a valid passport (issued within the last 10 years)

Number of founders: up to 5 co-founders may apply under a single project — a significant advantage for teams planning to relocate together with technology, business development, and growth specialists.

Financial Requirements

Unlike classic investment programmes, the minimum investment into the company can officially be €0 — the state does not require a specific capital amount. However, you must prove the financial capacity to support yourself and your family:

• For each adult: €8,800 in a bank account

• For each child: €2,664

These amounts are used to prove that you can live in Latvia during the initial years without burdening the social assistance system.

Application Process

1. Prepare a business plan reflecting your company's innovation, scalability, and market demand. The document should include: a product description, competitive analysis, team structure, business model, and 3-year financial projections.

2. Submit the business plan for evaluation to the Investment and Development Agency of Latvia (LIAA) or an authorised ecosystem organisation.

3. Collect documents: passport photocopies, criminal record certificate (with apostille), bank account statements, declaration of residence, rental agreement, marriage/birth certificates for family.

4. Submit the application — three channels are available: online with e-signature, through the Latvian consulate in your country, or by mail (if you are legally residing in the Schengen area).

5. Evaluation timelines: business plan review ~20 business days, residence permit document check 5–10 business days. The entire process can often be completed in around 30 days, depending on your preparation speed.

Startup Tax Regime — What the State Offers

Latvia's Startup Activity Support Law provides two substantial support instruments that directly reduce the operating costs of startups.

Fixed Social Payment (Startup Tax Shield)

Standard social contribution burdens can be heavy for a young company — the total VSAOI rate is 34.09% of gross salary. The Fixed Social Payment programme allows you to swap this variable burden for a predictable, flat social payment model.

What this means in practice:

• At €10,000 gross monthly salary: standard social contributions and PIT exceed €5,600. With the fixed payment — only €531.80. Saving: €5,111 per employee, per month.

• At €4,000 gross monthly salary: saving ~€1,605 per month, or nearly €20,000 per year per employee.

This regime is available to capital companies that meet the criteria set out in the Startup Activity Support Law and whose employees work on developing an innovative product.

45% Salary Co-Financing for Highly Qualified Employees

Need a senior developer or a CTO but can't match market salaries? The "Support for Attracting Highly Qualified Employees" programme covers up to 45% of eligible salary costs.

How it is calculated:

• The co-financing is calculated not against the actual salary but against a fixed hourly rate set by the Ministry of Economics for each profession category

• For a programmer (ICT Senior Specialist category), the standard rate is €31.44 per hour. At 160 hours per month, the eligible cost is €5,030, of which the grant covers €2,264. That's over €27,000 back into your business per year for a single hire.

The application deadline for this programme is 30 April 2027, and it is available to companies operating in Latvia's RIS3 priority sectors — which cover most technology and innovation fields.

Additionally, state budget funding of €400,000 is available for startup support in 2026, along with Riga municipality programmes totalling €420,000 (RSESP — €220,000; RSAISP — €200,000).

How to Register a Startup-Classified Company

To benefit from the startup support programmes, the company must meet the criteria set out in the Startup Activity Support Law. The purpose of this law is to promote the establishment of startups in Latvia and the commercialisation of research results.

Key requirements for obtaining startup status:

• The company is a capital company (usually an SIA) registered in Latvia

• The company is developing an innovative product — a good or service with high added value, including technological value

• The company meets the early-stage criteria — it must be no more than 5 years old since registration in the Commercial Register (with certain exceptions)

• The company must receive an early-stage risk capital investment of at least €150,000 to be eligible for an extended support period of up to 24 months

Registration Steps

1. Set up an SIA — standard procedure, as described in our SIA registration guide.

2. Submit an application to LIAA for startup status, attaching a business plan and product description.

3. Receive startup classification confirmation, which entitles you to apply for support programmes.

4. Apply for the chosen support programmes — the fixed social payment and/or salary co-financing.

Accounting Requirements for Startup-Status Companies

Startup-status companies have the same accounting requirements as any SIA, but there are several specific points to note:

• Mandatory accounting from day one. All transactions must be documented with legally compliant primary documents. The Accounting Law requires that entries in accounting registers are made in Latvian.

• Separate tracking of representation expenses. To apply the 5% CIT exemption on representation and staff sustainability expenses, the company must maintain a separate record and precisely describe these expenses in its accounting policy.

• Mandatory e-invoicing from 2026. For transactions between businesses and government bodies (B2G, G2B), e-invoices are mandatory.

• Transfer pricing documentation. If the startup has transactions with related parties exceeding €250,000, transfer pricing documentation must be prepared and submitted to the SRS upon request.

• Fixed social payment accounting. If using the fixed social payment, payroll records must be able to demonstrate compliance with the programme conditions — including which employees work on developing the innovative product.

Key Communities and Resources in Riga

Riga is the centre of Latvia's startup ecosystem, with approximately 81% of the country's startups concentrated here. The capital city invests purposefully in ecosystem development and is home to the leading communities and event venues.

Key Organisations

Startin.LV — the Latvian Startup Association, representing ecosystem interests at national level, conducting the annual sector study, and organising major events. Its database lists 517 startups.

LIAA (Investment and Development Agency of Latvia) — the state agency that manages the startup visa programme, provides support instruments (fixed social payment, salary co-financing), and helps attract investment.

EIT Community Hub Latvia — the European Institute of Innovation and Technology community hub, operating from 2026 in close partnership with RTU, the UniLab accelerator, and Startin.LV, forming a coordinated support structure for innovation teams — from early-stage to scaling.

Co-Working Spaces

Startup House Riga — a co-working space in the Spīķeri Quarter that has become one of the central hubs of Riga's startup community. It hosts the monthly Open Coffee Club Riga and other community events. In February 2026, President Edgars Rinkēvičs visited the space, meeting with the association's leadership and emphasising the importance of the startup environment for national development.

FoundersHub — a boutique co-working space in central Riga, built by founders for founders. Offers 24/7 access and a collaborative environment for entrepreneurs and creative professionals.

Key Events in 2026

1. Open Coffee Club Riga — regular, informal networking events with no speakers and no fixed agenda, focused on peer-to-peer value and new collaborations. Open to everyone, including first-time attendees. Next event: 12 February 2026.

2. TechChill 2026 — Latvia's flagship startup and tech festival, celebrating its 15th anniversary in 2026. This year, the festival announced its largest-ever prize pool: €1 million for the TechChill Founders Battle pitch competition. Dates: 25–27 March 2026, venue: Hanzas Perons, Riga.

3. UN:BLOCK 2026 — a Web3, blockchain, and decentralised technologies conference bringing together over 250 companies and 100 speakers from 40 countries. Dates: 1–2 April 2026, Hanzas Perons.

4. Baltic Fintech Days — the central fintech event in the Baltics, bringing together founders, investors, and policymakers.

5. Baltic Startup Policy Forum — 26 March 2026 at Riga Technical University, organised by TechChill and Startin.LV, with participation from Minister for Economics Viktors Valainis and high-level officials from Estonian and Lithuanian ministries.

What Latvia's Welcome Pack Actually Offers Startups

Latvia in 2026 has developed several "Welcome Pack" style support instruments that make entering the ecosystem easier:

• State-funded incubation support — incubators and accelerators (e.g. UniLab, Overkill Ventures, Commercialization Reactor) offer mentoring support, investor contact networks, and workspace. LIAA business incubation aid applications are accepted twice a year.

• The EIT Community Hub provides access to Europe's largest innovation network, including training and funding opportunities for students, researchers, and entrepreneurial teams.

• Startup Law support — more than €60 million in early-stage development investments will be available in the coming years through various financial instruments.

Latvia's startup ecosystem in 2026 has reached a new level of maturity — 569 startups, over €110 million in taxes, and a rapidly growing deeptech segment. The startup visa opens the door for third-country founders with innovative, scalable products, while the fixed social payment and salary co-financing make starting up far more financially viable. Our team supports founders with both company registration and ongoing accounting for startup-status companies.

Last updated: April 2026. Information is based on Latvian Startup Report 2025 data, the Startup Activity Support Law, and official materials from LIAA and Startin.LV.