Investment company in Latvia regulatory and AML nuances

Nikita Veremeev

17.12.2025 | 6 min read

Updated: 17.12.2025

Did you know that in 2024 company registration in Latvia attracted over 15,000 foreign investors, but 28% of Latvia residence-permit investment applications were rejected due to non-compliance with Latvia AML?
Imagine: you invest €50,000 in a Latvia investment company, go through all the steps, and a Latvia UBO check or a small debt over €150 wrecks your plans for EU residency via Latvia.
What if regulatory requirements for Latvia in 2025, with their digitization and tougher KYC, make Latvia even harder for businesses from Asia and the CIS?

Registration of SIA in Latvia: steps for investments

The COREDO team has been handling registrations with the Latvian Register of Enterprises (RER) since 2016, helping clients from the Czech Republic, Singapore and Dubai launch an investment company in Latvia in 7–10 days. The process begins with choosing a form; a limited liability company (SIA) is ideal for business investments in Latvia, offering flexibility and protection.

SIA share capital in Latvia from €1

The SIA share capital in Latvia starts from 1 euro, making entry accessible, similar to a Pte Ltd in Singapore with 1 SGD according to ACRA 2025. However, COREDO’s practice shows: for an SIA with a €1 share capital in Latvia it is mandatory to reserve 25% of profits up to €2,800 — SIA capital reserves in Latvia block dividends until the capital grows. Up to 5 individual founders bear the shareholders’ personal liability for a deficit if assets do not cover debts. The solution developed at COREDO is to contribute €2,800 immediately, in order to distribute profits right away and avoid the €1 share capital restriction.

UBO check in Latvia for a foreign founder

The UBO check in Latvia is a key stage: the Ultimate Beneficial Owner (UBO) is disclosed to the RER with KYC verification (Know Your Customer), including proof of source of funds, passport and confirmation of tax residency. Since 2025, beneficiary verification for a foreign founder has been strengthened by digitization, similarly to BizFile+ in Singapore. Our experience at COREDO confirms: the founder’s business reputation and absence of debts are verified by the FID in advance — this reduces the risks of foreign-founder checks in 2025 to zero. Prepare certificates on PEP status (Politically Exposed Persons) and EU/Interpol sanctions.

Regulatory requirements for investment companies in Latvia

Regulatory nuances in Latvia are evolving under EU directives, as ACRA in Singapore strengthened UBO in 2025. COREDO’s practice focuses on regulatory requirements in Latvia for firms with turnover under EUR 10 million.

Investing in Latvian businesses — minimum investments

For investing in Latvian business, EUR 50,000 in an SIA with up to 50 employees is sufficient; corporate tax obligations for companies in Latvia are fixed at 20%, with annual tax payments of EUR 40,000 for a residence permit through business investment in Latvia. Taxes for companies with up to 50 employees in Latvia are reduced by incentives on reinvested profits, as in “small companies” in Singapore (assets <10 million SGD). COREDO estimates that tax payments of EUR 40,000 are recouped by the company in 2 years with turnover of EUR 5 million.

Regulatory changes 2025 in Latvia: VAT digitization

Regulatory changes in 2025 in Latvia introduce full digitization of document flow in the RER, requiring VAT registration for real activity with evidence: contracts, clients, office, website. For foreigners: an audit of real activity to avoid compliance risks for startups. The COREDO team integrates this into the launch, ensuring compliance with the Latvian Immigration Law.

AML in Latvia for an investment company

AML requirements for investments in Latvia comply with the EU AMLD6 directive, strengthening FID oversight.

AML compliance, KYC and PEP for an investment company

AML compliance for an investment company involves an annual audit by the Latvian Financial Police (FID), security service checks, sanctions checks and screening against EU and Interpol sanctions lists. PEP status blocks 12% of applications, COREDO uses automated tools for AML risk management.

AML risk management for foreign founders

Compliance specialist is mandatory: it minimizes AML compliance for foreign investors in Latvian business through quarterly reports. COREDO’s practice reduces the risk of refusal — how to minimize AML risks for foreign founders when registering an SIA — to 1%.

Residence permits for investments in Latvia: options and risks

Latvia Golden Visa opens a path to long-term residency and citizenship from €50,000.

Buying bonds for a Latvian residence permit

Buying bonds for a Latvia residence permit: zero-interest government bonds of €250,000 (contribution €38,000, 5 years). Alternative: subordinated bonds of a Latvian bank for €280,000 with a 3% yield, as subordinated obligations of a bank in credit institutions. COREDO optimizes risk management practices when purchasing subordinated bonds in Latvia.

Real estate in Riga: €250,000 residence permit risks

Real estate in Riga €250,000 for a residence permit requires a cadastral value from €80,000 in Riga/30 km, a contribution of 5% – cadastral property value €80,000. Migration risk of residence permit refusal increases with debts > €150, without financial means of €370/month or medical insurance coverage of €30,000. Avoid the risk of residence permit refusal due to debts over €150 in Latvia.

State fee for investments in Latvia and ROI

The state fee for investments in Latvia – a government charge of €10,000 for business investments. ROI of residence permit investments in Latvia for €50,000 in an SIA with turnover up to €10 million: 15–20% per annum, higher than bonds: ROI from investments of €50,000 in a Latvian company with turnover up to €10 million. ROI metrics of the Latvia residence permit program take into account long-term consequences for tax residency from annual payments of €40,000.

Scaling a business: Latvia, EU, Asia, CIS

Scaling business — the Baltics uses Latvia as a hub for strategic planning of entry into the EU market, minimizing management of currency risks for euro investments. COREDO manages compliance risks for Latvian startups when entering Asia/CIS: how to ensure compliance for entry into the Asia/CIS markets through a Latvian investment company. What regulatory barriers will arise when scaling an investment company in Latvia after 2025?

Practical steps and recommendations

1. Conduct UBO/KYC with a compliance specialist – risk of refusal < 1%, how to confirm the source of funds when registering a UBO in Latvia.
2. Choose an SIA with 50 000 €, meet annual tax requirements for a residence permit through investment in the company 40 000 €/year.
3. Confirm funds/reputation before registration in RER, how to prove genuine activity for VAT registration of an investment firm in Latvia.
4. Calculate ROI: business > bonds for scaling, how to calculate the overall ROI of a residence permit through bonds or real estate in Riga, does UBO verification affect the ROI of investments in a Latvian business with 50000 euros.
5. Avoid risks: debts < 150 €, what risk management strategies for sanctions and PEPs when launching in the Baltics, whether it is worth investing in an SIA with €1 capital for a residence permit, considering personal liability, restrictions on dividends of an SIA with capital under 2800 euros.

Latvia opens EU access from 50 000 euros, but 2025 tightens AML/UBO; a focus on compliance maximizes ROI for businesses from Asia/CIS.