Latvia's Startup Ecosystem and Startup Visa 2026 — A Guide for Founders
Latvia's startup ecosystem has grown significantly in recent years — not just in the number of companies, but in their economic contribution. In 2026, the country continues to position itself as one of the most attractive EU landing spots for tech founders from around the world. In this guide, we've gathered the key figures, support instruments, startup visa requirements, and practical steps every founder considering entering the Latvian ecosystem should know.
Key takeaways
At the end of 2025, Latvia had 569 active startups that together paid €110.4 million in taxes (+25.5% versus 2024) — figures from Startin.LV's "Latvian Startup Report 2025"
Startup investment reached €78 million in 2025 — a +56% increase over 2024 (€50 million), not the +127% sometimes cited elsewhere
The startup visa is a temporary residence permit (TRP) valid for up to 36 months for third-country nationals with an innovative, scalable business idea; the application must describe an innovative, scalable product and business activities for the next 3 years (assessed by LIAA)
The fixed VSAOI social insurance payment for startups in 2026 is €531.80 per month (calculated as 2 × minimum wage × 34.09%) — regardless of the actual gross salary
The wage co-financing program covers up to 45% of eligible salary costs for highly qualified employees in RIS3 priority sectors
Latvia's startup ecosystem in numbers
According to the Latvian Startup Association "Startin.LV"'s annual "Latvian Startup Report 2025," Latvia had 569 active startups at the end of 2025 — 11% more than a year earlier. These companies paid €110.4 million in taxes to the state budget in 2025, up 25.5% from 2024 (€88.0 million).
Sector employment reached 5,101 people, up 7.4% from 2024 (4,750 employees). The average gross salary in the startup sector was approximately €2,820 per month — significantly above the national average, reflecting the sector's high productivity and its ability to attract talent.
Key ecosystem indicators at the start of 2026:
569 active startups, which generated €610.5 million in turnover in 2024 (+16.2% versus 2023, when turnover was €525.4 million)
5,101 employees, average gross salary ~€2,820
€110.4 million in taxes in 2025
€78 million in investment in 2025 — a 56% increase over 2024 (€50 million); the largest deal was a $62 million investment in Aerones
81.2% of startups are based in Riga
Sector breakdown
Latvia's startup landscape is diverse, with clear dominance in several areas:
Software as a product type: 60.3% of startups' product is software (the rest are hardware or a hardware/software combination). This figure describes product type, not business model — it overlaps with, but isn't identical to, the B2B/B2C split below.
B2B sector: 418 companies (73.5%) are business-focused
B2C sector: 217 companies (38.1%) serve end consumers
Deeptech: 150 companies (26% of the ecosystem) — the fastest-growing segment. It reached €149 million in turnover in 2024 (+6% year-over-year), and paid €35.4 million in taxes in 2025 (+84% versus 2024)
Fintech: 127 fintech companies, which generated €369 million in turnover in 2024 and employed more than 3,600 people
Latvia's startup sector has grown into a significant driver of the national economy in recent years. In 2024, 14 mature companies exceeded the €10 million turnover threshold (up 40% from the 10 such companies a year earlier), together accounting for 62% of the sector's total turnover — evidence that Latvia is producing companies capable of scaling and competing internationally.
The startup visa — a 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 company. The permit is granted for up to 36 months (3 years).
Who this visa is for
The program works differently from classic "investor" residence schemes — what matters most is the nature of the business, not a large capital investment.
Key requirements:
Must be a citizen of a country outside the EU/EEA
Must have an innovative, technology-based, scalable business idea. Examples: SaaS products, fintech solutions, artificial intelligence, data analytics, cybersecurity, deep tech, biotech, green energy
LIAA assesses whether the planned activity meets the startup definition; its criteria also cover the case where the foreigner only plans to establish the startup (see the FAQ below)
A clean criminal record and a valid passport (issued within the last 10 years)
Number of founders: up to 5 co-founders may apply together for one project — a significant advantage for teams planning to relocate together with technical, business development, and growth specialists.
Financial requirements
Unlike classic investment programs, the minimum capital investment in the company can officially be €0 — the state doesn't require a specific capital amount. However, applicants must demonstrate the financial capacity to support themselves and their family:
Per adult: at least the monthly minimum wage per month (€780 in 2026); if the permit is tied to employment or business activity, twice the average gross monthly wage of the previous year (Cabinet Regulation No. 225, para. 11)
Per child: 30% of the adult amount per month (para. 12; €234 at the 2026 minimum wage)
These amounts confirm that the applicant will be able to support themselves in the first years without drawing on the social assistance system. Important: these figures are tied to the minimum monthly wage (Cabinet Regulation No. 225) and can change annually — always verify the current amount with LIAA or the Office of Citizenship and Migration Affairs (PMLP) before applying.
Application process
Prepare a business plan that reflects the company's innovation, scalability, and market demand. It's advisable to include: a product description, competitive analysis, team structure, business model, and 3-year financial projections.
Submit the business plan for evaluation to LIAA (the Investment and Development Agency of Latvia) or an authorized ecosystem organization.
Gather documents: passport copies, a criminal record certificate (apostilled), bank statements, a residence declaration, a lease agreement, and marriage/birth certificates for family members.
Submit the application — three routes are possible: online with an electronic signature, through a Latvian consulate in your home country, or by mail (if legally residing in the Schengen area).
Review timelines: review times at LIAA and PMLP are not officially fixed and depend on workload and how complete the documents are — plan for several weeks and check LIAA and PMLP for current information before applying.
The startup tax regime — what the state offers
Latvia's Law on Support for Startup Activity provides two significant support instruments that directly reduce a startup's operating costs.
The fixed VSAOI payment (Startup Tax Shield)
The standard social insurance burden on a young company can be heavy — the combined VSAOI rate is 34.09% of gross salary. The fixed-payment program lets you replace this variable burden with a predictable, fixed social payment model: contributions are calculated on double the minimum wage (2 × €780 = €1,560) rather than the actual gross salary — in 2026, that works out to €531.80 per month (€1,560 × 34.09%).
What this means in practice:
At €10,000 gross salary per month the employer pays a fixed €531.80 in social contributions for the employee, and the employee pays no personal income tax. However, the employee must additionally contribute, through the employer, at least 10% to state pension insurance or a private pension scheme on the difference between gross salary and the fixed-payment base — about €844 in this example (10% × (10,000 − 1,560)).
During this period the employee loses the annual non-taxable minimum and the dependant allowance, and solidarity tax is payable above the maximum VSAOI base (Law on Support for Startup Activity, Articles 6 and 8). Work out the real saving for each employee separately.
This regime is available to capital companies that meet the criteria set out in the Law on Support for Startup Activity, whose employees work on developing an innovative product. To apply for the fixed payment, a qualified venture capital investor must have made an early-stage investment of at least €30,000 in the startup within the last 24 months (at least €15,000 in other cases), and the company's tax debt must not exceed €150 (Law on Support for Startup Activity, Article 4).
45% wage co-financing for highly qualified employees
Need a senior developer or a CTO but market salaries are out of reach? The "Support for Attracting Highly Qualified Employees" program covers up to 45% of eligible salary costs.
Co-financing is calculated not from the actual salary, but from a fixed hourly rate set by the Ministry of Economics for a specific professional category. The exact rate and current application deadline change periodically — check them with LIAA or on the business.gov.lv platform before applying.
The program is available to companies operating in smart specialization (RIS3) priority sectors, which cover most technology and innovation fields.
In addition, Latvia's 2026 state budget allocates €400,000 for startup support, alongside Riga municipal programs with a combined budget of €420,000 (RSESP — €220,000, RSAISP — €200,000).
Sources: LSM — €400,000 allocated for startup support this year; LSM — Applications now open for Riga's 2026 startup support programmes
How to register as a classified startup
To access startup support program benefits, a company must meet the criteria set out in the Law on Support for Startup Activity. The law's aim is to encourage the founding of startups in Latvia and the commercialization 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, including technological, value
The company meets early-stage criteria — it may not be older than 5 years since registration in the Commercial Register (with certain exceptions)
The company must receive an early-stage venture capital investment of at least €150,000 to qualify for an extended support period of up to 24 months
Registration steps
Found an SIA — the standard procedure, described in our SIA registration guide.
Submit an application to LIAA for startup status, including a business plan and product description.
Receive a startup classification confirmation, which grants the right to apply for support programs.
Apply to the chosen support programs — the fixed VSAOI payment and/or wage co-financing.
Accounting requirements for startup-status companies
Companies with startup status have the same accounting requirements as any SIA, but there are several specific nuances to keep in mind:
Mandatory accounting from day one. Every transaction must be documented with legally compliant source documents. The Accounting Law requires accounting records to be kept in Latvian.
Separate tracking of representation expenses. To apply the 5% corporate income tax exemption for representation and staff sustainability expenses, the company must keep separate records and precisely describe these expenses in its accounting policy.
Mandatory e-invoice use starting 2025. For transactions between businesses and government bodies (B2G, G2B), e-invoices have been mandatory since 1 January 2025 (for contracts concluded before the end of 2024 — no later than 1 January 2026); for the B2B segment (between businesses), it becomes mandatory from 2028.
Transfer pricing documentation. If the startup has related-party transactions exceeding €250,000, transfer pricing documentation must be prepared and submitted to VID upon request.
Tracking the fixed VSAOI payment. If using the fixed VSAOI payment, payroll calculations must be able to demonstrate compliance with the program's conditions — including which employees are working on developing the innovative product.
Key communities and resources in Riga
The center of Latvia's startup ecosystem is Riga — home to roughly 81% of the country's startups. The capital is investing deliberately in ecosystem development, and it hosts the leading communities and event venues.
Key organizations
Startin.LV — the Latvian Startup Association, which represents the ecosystem's interests nationally, conducts the annual industry report, and organizes the most significant events.
LIAA (Investment and Development Agency of Latvia) — the state agency that administers the startup visa program, provides support instruments (the fixed VSAOI payment, wage co-financing), and helps attract investment.
EIT Community Hub Latvia — the European Institute of Innovation and Technology's community hub, working closely with RTU, the UniLab accelerator, and Startin.LV to build a coordinated support structure for innovation teams — from early stage through scaling.
Coworking spaces
Startup House Riga — a coworking 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 emphasizing the importance of the startup environment for the country's development.
FoundersHub — a boutique coworking space in central Riga, built by founders themselves. Offers 24/7 access and a collaborative environment for entrepreneurs and creative professionals.
Key events in 2026
Open Coffee Club Riga — regular, informal networking events with no speakers or fixed agenda, centered on mutual value and new collaborations. Open to everyone, including first-time attendees.
TechChill 2026 — Latvia's leading 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.
UN:BLOCK 2026 — a Web3, blockchain, and decentralized technology conference bringing together more than 250 companies and 100 speakers from 40 countries. Dates: 1–2 April 2026, Hanzas Perons.
Baltic Fintech Days — the central fintech industry event in the Baltics, bringing together founders, investors, and policymakers.
Baltic Startup Policy Forum — 26 March 2026 at Riga Technical University, organized by TechChill and Startin.LV, with participation from Minister of Economics Viktors Valainis and senior officials from Estonia's and Lithuania's ministries.
A welcome pack for foreign founders
In 2026, Latvia has built several "welcome pack"-style support instruments that ease entry into the ecosystem:
State-funded incubation support — incubators and accelerators (such as UniLab, Overkill Ventures, Commercialization Reactor) offer mentorship, investor networking, and workspace. LIAA accepts business incubation support applications twice a year.
EIT Community Hub provides access to Europe's largest innovation network, including training and funding opportunities for students, researchers, and founding teams.
Support under the Startup Law — several tens of millions of euros for early-stage development investment are available in coming years through various financial instruments.
Latvia's startup ecosystem reached a new stage of maturity in 2026 — 569 startups, more than €110 million in taxes, and a fast-growing deeptech segment. The startup visa opens the door for third-country founders with innovative, scalable products, while the fixed VSAOI payment and wage co-financing make getting started financially more viable. Our team helps with both company registration and accounting for startup-status companies. Get in touch, or see our company registration services.
Frequently Asked Questions
Do I need to invest a specific amount of capital in the company for the startup visa?
No. Officially, the minimum investment can be €0 — the program assesses the business idea and its scalability, not the amount of capital. However, you must demonstrate the financial capacity to support yourself and your family (per month, at least the minimum wage — €780 in 2026 — per adult and 30% of that per child; for permits tied to business activity, twice the average gross wage may be required — check the exact amount with PMLP).
Can an idea-stage project apply for the startup visa in 2026?
LIAA assesses whether the activity described in the application meets the definition of a startup (a capital company with high growth potential whose main activity is the development of scalable business models and innovative products) and whether real business activities are planned for the next 3 years; LIAA's criteria also cover the case where the foreigner only plans to establish the startup. However, within 3 months of the decision you must become a board member of a capital company registered in the commercial register no more than a year earlier, and within 12 months you must submit information on the early-stage venture capital received or a progress report (Immigration Law, Article 27, part 1, point 11).
How long does the entire startup visa application process take?
Several weeks — the exact time depends on LIAA and PMLP workload and how complete your documents are; no official fixed review times are published, so build in a buffer.
How does the fixed VSAOI payment for startups work?
Instead of calculating social contributions from the actual gross salary (34.09%), they're calculated from double the minimum wage — in 2026, that produces a fixed payment of €531.80 per month regardless of whether the employee's salary is €4,000 or €10,000. The higher the actual salary, the bigger the savings compared to the standard regime.
Do all Latvian startups automatically get startup status and its benefits?
No. Startup status must be approved by LIAA, and the company must meet the criteria in the Law on Support for Startup Activity — it must be a capital company with an innovative product, no older than 5 years, and some support programs also require an early-stage venture capital investment.
Where can I find the most current ecosystem figures?
Startin.LV publishes the "Latvian Startup Report" every year (in February) — the most comprehensive and precise source for the number of Latvian startups, turnover, taxes, investment, and sector breakdown.
Related reading: foreigners starting a business in Latvia, how to register a SIA in Latvia and EU funding for small businesses.
Sources
PMLP — Innovative product creation or development (start-up activities)
LSM — Applications now open for Riga's 2026 startup support programmes
Law on Support for Startup Activity (Jaunuzņēmumu darbības atbalsta likums)
Last updated: September 2026. Information based on Startin.LV's "Latvian Startup Report 2025," the Law on Support for Startup Activity, and official LIAA and PMLP materials.
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