Living in Latvia offers foreign investors and high-net-worth individuals an attractive gateway to the European Union, combining affordable living standards with growing economic opportunities. The Baltic-based country offers investors a stable business environment, a low cost of living, and an active government that supports foreign investment. Latvia provides the Investor Visa Program, which enables non-EU nationals to obtain residency through real estate purchases or financial investments in the country’s businesses. This route not only provides access to the Schengen zone, but also opens doors for doing business throughout Europe.
Several factors, including affordable living expenses, high-quality public services, a secure environment, and a friendly community, have made Latvia an attractive destination for entrepreneurs, retirees, and global citizens. The growing number of investors recognizing Latvia’s potential has established the country as a new prominent investment destination in Europe. However, before selecting this investment route, it’s crucial to be aware of the cost of living in Latvia.
In this article, we’ll examine the advantages of living in Latvia and how Latvia’s Investor Visa program opens the door for international investors to gain residency and enjoy a comfortable and decent lifestyle.
Advantages of Living in Latvia
Latvia stands out as an appealing destination for foreign investors for several reasons, mainly its affordable residency program, moderate cost of living, and visa-free access to the Schengen Zone. Here are the main benefits of living in Latvia:
-
Among the Least Expensive Paths to European Residency
One of the most attractive benefits for foreign investors looking to live in Latvia is its cost-effective residency option. Investors can obtain Latvia’s Golden Visa by investing €50,000 in a Latvian company with fewer than 50 employees and an annual turnover of at least €10,000 or €100,000 in a company with more than 50 employees and an annual turnover exceeding €10,000. Additionally, investors can purchase a property valued at a minimum of €250,000, with a one-time government fee of 5 percent of the purchase price. However, investors must hold the property for at least five years.
-
Cost of Living in Latvia
Latvia offers an affordable lifestyle compared to many Western European countries, making it an attractive option for expats, students, and remote workers. However, the monthly living expenses depend on location, lifestyle, and whether the applicant is single or has a family. The estimated monthly cost[1] for a single person is $920 (€810), excluding rent, and the cost increases to $3,097 (€2,726) for a family of four. Cost of living in Latvia, excluding rent, is 6% higher than in Portugal[2], and 11.6% lower, including rent. However, the cost of living in the United States[3] is 34.7% higher than in Latvia (excluding rent), and 70% higher than in Latvia, including rent. The average monthly net salary in Latvia after tax is €1,140.
Rental prices in Latvia may vary depending on the location and the size of the apartment. For instance, in Riga, Latvia’s capital, rental prices of apartments are higher than in smaller cities such as Daugavpils and Liepāja. The cost of rent in Riga[4], which is distinguished by its diversified economic activity, strategic location, bustling property market, and cultural sites, is €500 for a one-bedroom apartment and surges to €920 for a three-bedroom apartment in the city centre. Outside the center, the rental cost is €350 for a one-bedroom apartment and €610 for a three-bedroom apartment.
The average price per square meter for an apartment in the city centre is €2,400 and decreases to €1,500 outside the center. The cost of a square meter in Latvia is 35% lower than in Portugal[5] in the city centre, and 43% lower than outside the center. In Riga, the price of a square meter for an apartment in the city center is €2,660 and drops to €1,700 outside the center. In Liepaja, the average price per square meter is €1,350 in the city center and €1,000 outside the center. When renting or purchasing a property in Latvia, investors must consider the cost of utilities[6], including electricity, heating, cooling, water, and garbage, which is estimated at €265 per month.
The country offers a well-connected network of buses, trams, and trains, making daily commutes and intercity travel smooth and hassle-free for residents and visitors alike. Transportation in Latvia is both affordable and efficient, with monthly passes in cities like Riga costing around €30. The normal tariff of a taxi start is €2.3. The price of gasoline per liter is €1.63. For people who prefer owning their car, the cost of a Volkswagen Golf 1.4 90 KW trendline or equivalent new car is around €26,000. This price is 13% lower than in Portugal[7].
-
Member of the European Union
Latvia offers substantial benefits for investors holding a residence permit, thanks to its membership in the European Union and the Schengen Area. One of the most significant advantages of acquiring a residence permit in Latvia is the free travel benefits within the Schengen zone across all member states. The residence permit allows holders to enjoy European mobility, enabling them to explore the continent. Moreover, Latvia’s international standing allows residents to obtain visas more easily when applying to visit the United States, Canada, and several other countries through reciprocal agreements.
-
Favorable Tax Regime
Latvia offers a competitive tax regime for foreign investors[8] holding a residence permit. The corporate income tax rate of 20% applies only to distributed profits, which motivates investors to reinvest their funds. The personal income tax system in Latvia features progressive rates starting at 20% for earnings up to €20,000 and 23% on income from €20,000 to €78,000, and 31% on income exceeding this threshold. Most dividends and interest are exempt from withholding tax, and Latvia’s extensive network of double tax treaties (over 60 countries) helps avoid double taxation through foreign tax credits. Non-residents are only taxed on Latvian-sourced income. Social security contributions reach substantial levels because employees pay 10.5% while employers pay 23.6%, and self-employed persons must cover the entire amount. The tax system of Latvia provides favorable conditions for investors who want to access the EU market while planning their taxes efficiently. The standard VAT rate is 21%.
-
High Returns from Real Estate Properties
The residential real estate market in Latvia is poised for substantial growth as it is expected to reach $159.36 billion by 2025[9]. The market will grow at a 4.27% compound annual growth rate (CAGR) from 2025 to 2029 due to its positive investment environment and economic growth. The market is projected to grow to $188.34 billion by 2029, showing a steady growth pattern due to increasing demand from both domestic and foreign investors. The demand for residential real estate in Latvia is surging due to the country’s attractive investment climate and growing economy. The average gross rental yield[10] in Latvia stands at 7.9% in Q2 2025.
-
Attractive Banking System
One of the main advantages of living in Latvia is its liberal financial laws and the stable economy. The banking confidentiality in Latvia remains strict because any violation will result in criminal penalties. The banking services of Latvia provide a complete range of options that fulfill European banking standards. The banking sector has improved its remote account management systems during recent years to provide better services for both domestic and international clients.
-
Strategic Location
Latvia’s strategic location allows residents to easily reach major European cities. Riga serves as a major airport hub that offers direct flights to Paris, Berlin, and Barcelona, which take about two and a half hours to reach. The Baltic Sea connects Latvia to Stockholm through regular ferry services, which provide both convenience and pleasure for travelers. These advantages position Latvia as a strategic gateway for international residents who want to experience European residency benefits and worldwide travel opportunities.
Latvia is also renowned for its breathtaking landscapes[11], rich natural heritage, environmental conservation, and biodiversity protection. With 658 specially protected natural territories covering 13% of its land area, Latvia’s commitment to preserving its natural wonders is evident. This is further exemplified by Latvia’s extensive forests, accounting for approximately 50% of the country’s territory, serving as havens for diverse flora and fauna.
-
Applying for Citizenship After 10 Years
The main benefit of living in Latvia is gaining the opportunity to get full citizenship. After 10 years of continuous legal residence in Latvia, foreign nationals become eligible to apply for Latvian citizenship, subject to fulfilling certain conditions. Applicants must pass the basic Latvian language test at Level A2. They should also have a proven knowledge of the general history of Latvia and the national anthem.
-
High Level of Education
Latvia has emerged as a popular destination for international students who want to combine academic excellence with cultural immersion. The combination of affordable tuition fees, along with internationally recognized universities and active student life, makes Latvia an appealing destination for students who want to enhance their academic and personal development.
Latvian universities adhere to the European higher education system, ensuring that degrees awarded are recognized worldwide. Riga Technical University (RTU) stands among institutions that have received international recognition for their academic achievements. The language barriers in Latvia are minimal because many universities offer a wide range of programs that are taught entirely in English. This accessibility allows international students to pursue their desired courses without the need to learn a new language. Regarding primary education, the monthly cost of a private preschool for one child is €460, and the yearly cost of an international primary school is €13,500.
-
Vibrant Cities
Latvia provides its residents with a high standard of living, blending contemporary amenities with traditional cultural traditions. Riga is a vibrant and cosmopolitan city, which combines beautiful Art Nouveau buildings with lively cultural events and exciting nightlife. The country features charming towns, pristine forests, and a beautiful coastline that borders the Baltic Sea. It contains multiple cultural attractions, which include medieval castles, museums, and UNESCO World Heritage Sites. Latvia offers a peaceful way of living, together with top-notch public services and a growing expat community, which makes it suitable for both working professionals and families. The cultural scene in Latvia provides a wide range of entertainment options at affordable prices for every taste. From exploring ancient ruins and the stunning natural landscapes to visiting museums and enjoying the vibrant nightlife, residents can enjoy their life without stretching their budget.
For more information about the Latvia Golden Visa and the path to obtain it, please contact us on WhatsApp.
[2] https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Portugal&country2=Latvia
[3] https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Latvia&country2=United+States
[4] https://www.numbeo.com/cost-of-living/in/Riga
[5] https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Portugal&country2=Latvia
[6] https://www.numbeo.com/cost-of-living/country_result.jsp?country=Latvia
[7] https://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=Portugal&country2=Latvia
[8] https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-latviahighlights-2024.pdf
[9] https://www.statista.com/outlook/fmo/real-estate/residential-real-estate/latvia
[10] https://www.globalpropertyguide.com/europe/latvia/rental-yields#:~:text=The%20average%20gross%20rental%20yield,average%20rental%20yield%20was%208.06%25.