One of the first recommended steps to complete when moving to Latvia is to open a bank account. With numerous options in terms of banks and financial services, setting up an account today is quite easy.
If you have recently moved or started a business and want to open a bank account in Latvia, you can rely on our specialists. Our company formation agents in Latvia are also at your service if you want to start a business here.
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How to open a bank account in Latvia as a non-resident
Several European banks provide non-resident banking if you can demonstrate a connection to the country, such as through property or a business. Latvia is one of the most welcoming countries in Europe when it comes to foreign employees and companies, but also non-residents who can open bank accounts with the desired institution. Moreover, it is possible to create a bank account in Latvia online, as the country’s anti-money laundering verifications are easy to complete.
Although each country has its own rules and processes, the European countries work together to facilitate payments through a system known as the Single Euro Payment System (SEPA). If you need support in opening any type of account, feel free to address our local consultants.
Documents for opening a personal bank account in Latvia
Latvian citizens and foreign nationals and investors can open various types of accounts, however, we will focus on the requirements for foreign ones. The main advantage of opening a bank account in Latviaas a foreigner is that you can choose to set up a multicurrency account. It will also help you secure a residence permit faster based on your local address.
Here are the main requirements to open a bank account in Latvia as a foreign citizen:
- the application form issued by the chosen bank;
- a valid identification documents (passport);
- work contract if you have come to Latvia as an employee;
- proof of residence for those who already live here (a recent utility bill, payslip, or driver’s license).
Opening a bank account in Latvia takes a few days, however, it can also take longer depending on the verifications that need to be made. In addition to a bank account, if you are seeking any assistance regarding setting up a company in Latvia, our agents can help you. In 2020, as per the Ease of Doing Business Index, Latvia was placed 19th out of 190 countries owing to its flexibility and affordable business registration fees. Consult with one of our business incorporation agents before deciding to incorporate a company in this country. They can inform you of the advantages of starting a business here.
How to open a company account in Latvia
If you want to open a bank account in Latvia for your company, you need to prepare the following documents:
- the statutory documents of the company and the Certificate of Incorporation;
- an extract from the Trade Register with the name of the company’s director(s);
- the passports of the shareholders and director(s) (IDs in case these are Latvian nationals);
- power of attorney in case of using a representative to open the account.
The opening of a corporate bank account in Latvia takes around 4 weeks. Our Latvian company formation specialists can assist with this procedure.
Types of bank accounts available with Latvian banks
First of all, it is important to note that both foreign citizens who do not reside in Latvia and nationals alike can open bank accounts here. Companies and businesspersons can also open accounts with Latvian financial institutions or branch offices of foreign banks operating here.
Here are the main types of accounts available for creation in Latvia:
- – personal or current bank accounts that can be created to receive the salary and for daily transactions;
- – savings accounts are also available for those who want to keep their money safe;
- – corporate bank accounts are available for creation for companies in Latvia.
There are approximately 20 institutions to choose from and with which you can open a bank account in Latvia. These are divided into local banks and foreign banks operating here.
We can also help if you are foreign entrepreneur and want to open a company in Latvia.
Latvia’s banking system
Latvia’s banking system is considered to be modern and developed, with a strong emphasis on financial stability and regulation. The country’s banking sector is dominated by several large commercial banks, such as Swedbank, SEB, and Citadele Bank. According to the data gathered by the European Banking Federation, Latvia’s banks:
- – at the level of 2020, 13 banks were institutions registered locally;
- – another 3 were entities registered in European Union countries;
- – at the end of 2020, these banks attracted €20.5 billion in deposits.
The Latvian government and regulatory authorities have taken steps to strengthen anti-money laundering measures and improve transparency in the banking sector. Feel free to contact our advisors for help if you want to open a bank account in Latvia in 2023. Accountants may help you save money on taxes and take advantage of tax reductions by examining your financial transactions and earning potential. They can handle tax computations and provide guidance on how to manage your company in a way that minimizes your tax liability. You are welcome to rely on the services of our Latvian accountants for their services.