Founded 1998
Licensed provider specialising in
fintech licensing and compliance
Obtain an electronic money institution licence from Latvijas Banka to issue e-money, open client payment accounts and passport to 30 EU/EEA countries.Latvia applies the EU e-money rules through its Law on Payment Services and Electronic Money, with a free pre‑application meeting.
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Overview
In Latvia, electronic money institutions are licensed by Latvijas Banka under the Law on Payment Services and Electronic Money (Maksājumu pakalpojumu un elektroniskās naudas likums), based on the EU e-money and payment directives. A Latvian EMI can passport its services to all 30 EU/EEA countries.
Issue e-money, prepaid cards and wallets and open client payment accounts from Latvia
Passport to 30 EU/EEA countries by notifying Latvijas Banka, which informs the host state
A free pre-application meeting with Latvijas Banka; your company does not need to exist yet
A completeness check within 15 working days, then a decision within 3 months of a complete file
Profit kept in the EMI to build own funds is untaxed; 20% applies only when profit is paid out
A registered EMI route for Latvia-only models with up to €2 million average outstanding e‑money
Latvijas Banka publishes licensing guides and runs a FinTech licensing support programme for new applicants. We draft the application on its forms, register the Latvian company with its board, capital and safeguarding account, and stay your point of contact with the regulator until the licence is granted. Licence, company and compliance come from one team.
Coverage
Latvijas Banka licenses EMIs for very different models, from card programmes to fiat rails for crypto firms. What they share is the need to hold client money as electronic money, which a payment institution cannot do. These are typical profiles for a Latvian EMI.
You need: to issue prepaid or debit cards and digital wallets to clients across Europe from a licensed Latvian entity.
Latvia gives you: e-money issuance and payment accounts under Latvijas Banka supervision, with passports to the EU/EEA markets you target.
You need: to hold business clients’ funds, run payouts and collections, and offer IBAN accounts to companies in several EU countries.
Latvia gives you: payment services next to e-money, with safeguarded client funds and one Latvian licence passported across the EU.
You need: to offer everyday accounts, transfers and cards to consumers or SMEs without becoming a credit institution.
Latvia gives you: accounts, transfers and cards from a Latvian EMI; lending and deposit-taking stay outside an EMI’s scope.
You need: regulated euro accounts and payouts next to crypto services, ideally under the same supervisor.
Latvia gives you: the fiat side under Latvijas Banka, with the option to add certain crypto-asset services later by MiCA notification.
Latvia offers a central-bank regulator that supports applicants before they file, a clear legal deadline and tax only on distributed profit. The same authority licenses crypto-asset service providers, so a Latvian EMI can grow into crypto services.
Latvijas Banka licenses and supervises electronic money institutions, payment institutions and crypto-asset service providers, so fiat and crypto services answer to one authority.
A free pre-application meeting, published licensing guides and FinTech licensing support help you shape the application before you file it with Latvijas Banka.
Latvia taxes corporate profit at 20% only when it is distributed. An EMI that keeps its profit in the company to strengthen its own funds pays no corporate income tax on it until then.
Under MiCA, a Latvian EMI can provide certain crypto-asset services by notifying Latvijas Banka at least 40 working days in advance, instead of a separate CASP application.
Comparison
Latvian law offers two ways to issue electronic money. The licensed EMI is the full authorisation with EU passporting. The registered EMI is a lighter regime for closed, Latvia-only models with a limited e-money volume. Most growth plans need the licensed EMI; the registered route can fit a local product. If your model needs payment services but no e-money, compare the Payment Institution licence.
| Factor | Licensed EMI | Registered EMI |
|---|---|---|
| Initial capital | €350,000 | None fixed; own funds not negative |
| Average outstanding e-money | Unlimited | Up to €2,000,000 |
| Services | E-money and payment services | E-money, payment instruments, money remittance |
| EU/EEA passporting | 30 countries | Latvia only |
| Management board and legal address in Latvia | Yes | Yes |
| Latvijas Banka application fee | €5,000 | €2,500 |
As published by Latvijas Banka. Fees for innovative-only e-payment services are lower.
Pricing
Three tiers, the same as for our other EMI jurisdictions, applied to a Latvian licence. The Gold legal opinion confirms whether Latvia and a licensed or registered EMI fit your model. Platinum covers the full application to Latvijas Banka through to authorisation, and Custom adds the Latvian team, office, banking and ongoing compliance.
Gold
€10,000fixed fee
A written legal opinion on your model under the Latvian Law on Payment Services and Electronic Money: licensed or registered EMI, capital and own funds, safeguarding and a plan for the Latvijas Banka application.
Platinum
From €80,000
We prepare the full Latvian application on the Latvijas Banka forms, from the business plan, safeguarding and AML policies to the pre-application meeting, the filing and its questions, through to the licence.
Custom
From €150,000
The Latvian application plus the operation behind it: the management board and key functions in Latvia, the office, safeguarding and operational banking, and compliance support after go‑live.
* Pricing is indicative and subject to final confirmation. Prices exclude VAT. Platinum and Custom are quoted for your scope. Paid separately: the €350,000 initial capital, registering the Latvian company, and the fees of Latvijas Banka (€5,000 for the application and a yearly supervision fee of up to 1.4% of gross income, at most €100,000).
Timeline
Latvijas Banka checks completeness first and must decide within three months of a complete application. The period can be extended for objective reasons if information is missing, so preparation quality and the pre-application meeting are the best ways to protect your timeline.
Build the application and meet Latvijas Banka before you file.
Business model and scope, the Latvian company, management board, capital, safeguarding, AML framework and ICT controls, discussed with Latvijas Banka at a pre‑application meeting.
~3 to 4months
Latvijas Banka: The pre-application meeting is free of charge, and your company does not need to be registered yet.
What to prepare
Shape the application around how the EMI will really operate.
The file is checked for missing forms and documents.
The authority confirms that all forms and documents are present and consistent before the substantive review starts.
15working days
Latvijas Banka: Latvijas Banka checks the completeness of an EMI application within 15 working days.
What must be complete
A coherent file avoids requests for more information.
Substantive review of the EMI and the licence decision.
Assessment of management and owners, capital and own funds, safeguarding, internal control, AML and sanctions controls, ICT security and business continuity.
3months
Legal timeline: The law gives Latvijas Banka three months from receipt of all necessary documents to decide, which it may extend for objective reasons.
What is assessed
Latvijas Banka tests whether the EMI can operate soundly.
Licence granted, operations start, passports filed.
Activate the safeguarding account, start compliant operations in Latvia and notify Latvijas Banka of the EU/EEA countries where you will provide services.
~9 to 12months total
Passporting note: Latvijas Banka forwards your notification to the host authority. No separate licence is needed in each country.
What to maintain
A licensed EMI is supervised on how it operates day to day.
* Indicative end-to-end duration. The three-month period starts once the application is complete; requests for information and the quality of the file decide the real pace.
Process
Step 1
We review your business model, confirm whether you need a licensed or a registered EMI, and plan capital, substance and timing for Latvia.
Step 2
We register your Latvian company (SIA) with its legal address in Latvia, appoint the management board and arrange the €350,000 initial capital.
Step 3
We prepare the pre-application meeting and the full application on the Latvijas Banka forms, file it and answer its questions through to the decision.
Step 4
Once licensed, we file your passporting notifications through Latvijas Banka and support safeguarding, AML compliance and supervisory reporting.
Requirements
An EMI licence in Latvia is a full authorisation with ongoing supervision. Latvijas Banka assesses the people, the capital, the protection of client funds and the controls behind your business model.
Initial capital of at least €350,000 on the day of the licence decision.
The management board and legal address must be in Latvia. Latvijas Banka Regulation No 275 sets the internal control rules:
Latvijas Banka Regulation No 270 sets the licensing procedure and the application forms. The file typically includes:
Funds received for e-money must be safeguarded: in a separate account at a credit institution, in secure low-risk liquid assets, or covered by insurance or a guarantee.
FAQ
Latvijas Banka, the central bank of Latvia, licenses and supervises electronic money institutions. Licensed and registered EMIs are listed in its register of financial market participants and in the EBA register.
The Law on Payment Services and Electronic Money (Maksājumu pakalpojumu un elektroniskās naudas likums), which implements the EU E-Money Directive (EMD2) and Payment Services Directive (PSD2). Latvijas Banka Regulation No 270 sets the licensing procedure and forms, and Regulation No 275 the internal control rules.
Count on 9 to 12 months in total. After preparation and the pre-application meeting, Latvijas Banka checks completeness within 15 working days and must decide within 3 months of receiving all documents, a period it can extend for objective reasons.
Initial capital of at least €350,000 on the day of the licence decision. After that, own funds must also cover at least 2% of the average outstanding electronic money.
Latvijas Banka charges €5,000 to examine an EMI application (€450 for innovative-only e-payment services) and an annual supervision fee of up to 1.4% of gross income, capped at €100,000 a year. Our packages are listed in the pricing section.
A lighter regime for closed models: average outstanding e-money of up to €2,000,000, e-money with payment instruments or money remittance only, users linked to Latvia and no passporting. It needs no fixed initial capital, but the management board and legal address must be in Latvia.
Yes. The management board and the legal address must be in Latvia. Managers need adequate education and experience, and board members and shareholders with 10% or more must be of good repute. We can set up the Latvian company (SIA) and source the people.
Funds received for e-money must be kept in a separate account at a credit institution, invested in secure, low-risk liquid assets, or covered by an insurance policy or a guarantee. The arrangement is part of the application.
Yes. Before starting in another EU/EEA country through a branch, agent or cross-border services, the EMI notifies Latvijas Banka, which informs the host authority. No separate licence is needed in each country.
For certain services, yes. Under MiCA, existing financial institutions such as EMIs can provide some crypto-asset services by notifying Latvijas Banka at least 40 working days before they start. Other models need a full MiCA CASP licence in Latvia.
As a financial institution under the Latvian AML law (the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing), an EMI must identify and monitor its customers, screen for sanctions, report suspicious transactions to FIU Latvia via goAML and commission an independent external AML audit.
Corporate income tax in Latvia applies only when profit is distributed, at 20%, for example on dividends. Profit kept in the EMI is not taxed until it is paid out, which helps build own funds.
Yes: AML team outsourcing, MLRO and compliance officer roles, safeguarding and supervisory reporting, and DORA support for ICT risk. See our compliance services.
Contact
Tell us about your project and receive a tailored proposal with indicative timelines and a budget from our legal and compliance team.
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