While Europe debates the future of fintech, Latvia is already building it.
By: Ieva Jāgere, Director of the Investment and Development Agency of Latvia
Over recent years, Latvia has deliberately developed a business environment that is open to investment in general, but particularly well-suited for financial technology – a sector where speed, precision, and trust must coexist. This combination is rare, and it is exactly what makes Latvia increasingly attractive to investors.
Importantly, this approach is not fragmented. Latvia has been consistently moving towards a balanced model – fostering innovation while ensuring regulatory clarity, legal certainty, and seamless access to the European market.
Six months from idea to licence
On average, obtaining a fintech licence in Latvia takes around six months. At a time when companies in many parts of Europe wait a year or longer, businesses in Latvia are already operating, testing products, and acquiring their first customers.
This is no coincidence – it is a deliberate policy choice to create an environment where innovation is not delayed but actively enabled.
Even more important is the process itself. The Bank of Latvia, acting as the regulator, has introduced a pre-licensing assessment framework. This allows companies to understand requirements early, structure documentation correctly, and avoid costly revisions later. It significantly reduces uncertainty and accelerates time to market.
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In addition, institutional support mechanisms are being strengthened – including efforts to enable documentation in English and improve the servicing of foreign companies through a unified “one-stop shop” approach, making Latvia more accessible to global business.
Regulation that does not compromise innovation
At the same time, Latvia has not chosen growth at the expense of quality. In recent years, the financial sector has undergone significant transformation, introducing some of the strictest anti-money laundering standards in the European Union. This ensures that innovation develops within a transparent and predictable environment.
Beyond that, Latvia is building a forward-looking regulatory framework for next-generation financial services – including tokenisation, blockchain-based solutions, and the integration of crypto assets into tax and settlement systems. This is not a conceptual vision, but a concrete policy framework with defined tasks extending to 2027.
The results are already visible. Today, 127 fintech companies operate in Latvia, employing more than 3,600 people, generating close to €400 million in turnover, and contributing over €91 million annually in taxes.
The sector has clearly moved beyond its early stage and is becoming a stable, export-oriented part of the economy.
This is possible because Latvian fintech companies operate globally. For example, Eleving Group develops more than 30% of its portfolio in African markets, where it is one of the leading players in the vehicle financing segment across several countries, including Tanzania and other rapidly growing economies. Meanwhile, Mintos has become one of the largest investment platforms in Europe, managing an investor portfolio exceeding €600 million and connecting capital with lending markets across multiple continents. It is a clear example of how a platform built in Latvia can evolve into a global infrastructure player.
Tax environment and human capital – key pillars of global competitiveness
Another key advantage for investors is the tax environment. According to the Tax Foundation’s International Tax Competitiveness Index, Latvia has ranked 2nd globally for several consecutive years.
The system is simple and business-friendly: corporate income tax is only applied when profits are distributed. As long as earnings are reinvested, they are not taxed. This allows capital to remain within companies and support growth rather than constrain it.
Equally important is human capital. Latvia offers a highly educated and internationally capable workforce – 64% of the working-age population speaks English, a quarter of students pursue STEM disciplines, and companies can quickly build teams with globally competitive skills.
Latvia’s development strategy further strengthens this advantage by aligning education with industry needs and expanding reskilling opportunities in fintech.
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The state as a partner, not just a regulator
Institutional support also plays a key role. In Latvia, public institutions operate as partners to investors. The Investment and Development Agency of Latvia provides a one-stop service model, supporting companies with market entry, talent attraction, and development needs.
For large and strategically significant projects, a dedicated mechanism is available – a working group chaired by the Prime Minister – enabling fast resolution of complex issues and ensuring projects do not get lost in administrative processes.
In other words, when a project matters, it moves.
Latvia’s fintech development strategy to 2027 is built around three core directions: infrastructure, access to capital, and talent availability.
This includes:
- simpler integration for foreign companies and documentation processes in English
- regulatory frameworks for blockchain, tokenisation, and digital assets
- integration of crypto assets into tax payment processes
- improved access to investment and early-stage capital
- systematic development of fintech talent
Together, these measures share one objective: to make Latvia a place where fintech companies can start, grow, and scale without unnecessary geographic or administrative friction.
A European conversation already taking place in Riga
For last years now, the Latvian FinTech Forum in Riga has brought together policymakers, regulators, and industry leaders from across Europe. It is not just a discussion platform – it is where the region’s fintech agenda is actively shaped.
One conclusion is becoming increasingly clear: fintech is not merely a financial sector innovation, but a broader driver of economic transformation.
And Latvia is part of that conversation.
Of course, Latvia is not the largest country in Europe. As locals like to joke, the ecosystem is so close-knit that within just a couple of handshakes, you already know half the industry.
But in fintech, this is an advantage. It means faster decisions, direct communication, and minimal friction.
The question is no longer whether Latvia can become one of the most dynamic fintech hubs in Northern Europe.
The question is how quickly the rest of the world will notice.
