Published on and written by Cyril Jarnias
Settling in Latvia, whether in Riga or another city, quickly brings you face to face with a central question: how to manage your daily finances, handle income from multiple countries, and optimize your money transfers without blowing your budget on bank fees. The country offers a surprisingly modern financial environment for a small market, with a highly digitalized banking sector, solid European supervision, and one of the most dynamic fintech ecosystems in the region.
The Latvian financial system offers advanced digital services and instant transfers, but also presents challenges: strict compliance rules, demanding account opening procedures for non-residents, and a past marked by banking scandals. A comprehensive overview covers choosing a bank, fees, digital solutions, international transfers, security, and basic taxation.
A European banking landscape, small but highly digitalized
The Latvian banking system is relatively small and highly concentrated: about thirty banks, including a dozen branches of foreign groups, dominated by major Nordic players such as Swedbank, SEB, Luminor, and Citadele. Most institutions are universal banks, meaning they combine retail banking, corporate services, credit, wealth management, and sometimes investment activities.
The European deposit guarantee scheme protects deposits up to €100,000 per depositor per bank in Latvia.
The sector is jointly supervised by the Bank of Latvia (Latvijas Banka) and, for important institutions (Significant Institutions), by the European Central Bank. This European supervision, combined with a considerable tightening of anti-money laundering (AML/CFT) rules after 2018, has cleaned up a sector once marked by banks heavily focused on “non-residents” and several scandals (closure of Trasta Komercbanka, ABLV, PNB Banka, etc.).
Latvia is a leader in the eurozone for the adoption of SCT Inst instant payments. The population commonly uses digital solutions: contactless cards for small amounts, mobile wallets, QR codes, and digital payments in transportation and hospitality. It is possible to live almost cash-free in Riga, although some small merchants still prefer cash.
Main banks and service profiles
For an expat, the first instinct is to identify the major local players and their specialties.
| Bank / Player | Ownership / Profile | Market share (assets, end 2023) | Key points for expats |
|---|---|---|---|
| Swedbank | Swedish group, SI | ~39.98% | Dominant bank, current accounts, savings, packages, basic account for non-residents |
| SEB Banka | Swedish group, SI | ~24.02% | Universal bank, service plans, strong digitalization |
| Citadele Banka | Local bank, SI | ~19.94% | Result of Parex dismantling, bundles, C Prime/C Supreme/C Smart cards, local and international clientele |
| Luminor Bank | Baltic group (Estonia), SI | n/a | Present in all three Baltic states, daily banking and financing solutions |
| Rietumu Banka | Private/corporate bank, LSI | ~6.53% | Focused on wealthy clients and businesses, European IBAN, wealth management |
| BluOr Bank | LSI with Latvian capital | ~3.97% | Strong technology orientation and online services |
| Industra Bank | Local universal bank | n/a | Personal and business accounts, remote opening via video conference |
| Magnetiq Bank | Owned by Signet Bank, LSI | n/a | Specialized in fintech, e-commerce, start-ups; basic accounts for individuals |
| RIB Banka | Investment bank | n/a | Business-oriented, but basic euro account + Mastercard card for individuals |
Other players like Signet Bank focus exclusively on private banking and businesses and do not offer “everyday” current accounts to individuals. Alongside these banks, there are also 25 small credit unions, more suited for local use.
For an expat mainly looking for an account to receive a salary, pay rent, and local expenses, Swedbank, SEB, Citadele, Luminor, or BluOr Bank will generally be the most natural entry points.
Opening a bank account as an expat
The good news for non-residents: it is possible to open a bank account in Latvia without being a citizen or even an EU resident. The bad news: documentary requirements have become significantly stricter after the money laundering cases, and fees for non-residents can be high, especially with traditional banks.
General conditions and required documents
The minimum age is 18. Banks require a set of supporting documents, with significant variations from one institution to another. The most commonly requested items are:
To open a bank account in Latvia, you must provide several documents. For individuals, you need a valid ID (passport or national ID card for EU citizens), a recent proof of address (utility bill, bank statement, lease, sometimes from your home country), proof of status or income (employment contract, employer letter, bank statements, sometimes a lease contract in Latvia), a tax identification number (Tax ID) from your home country, and a declaration on the source of funds (salary, savings, sale of property, business income, etc.). For non-EU nationals, a Latvian residence permit, a “personas kods,” or proof of a link to Latvia (employment, studies, investment) may be required. For a business account, you need the company’s documents: articles of incorporation, registration certificate, commercial register extract, IDs of shareholders and directors, powers of attorney, business plan, and contracts with clients or suppliers.
Some banks allow fully remote opening, especially for EU nationals or via online platforms, but many require at least one physical visit, particularly for non-EU residents. In practice, it is highly recommended to make an appointment before going to a branch, especially if you wish to be served in English.
Timeframes, procedures, and realities for non-residents
Opening an account for a resident salaried employee with a Latvian ID and local contract can be almost instantaneous: a few minutes to a few hours in the branch, then a few days to receive the card. For an expat non-resident, the reality is more nuanced: the KYC and AML verification can take several days, or even weeks if the profile is complex (income from multiple countries, corporate structure, significant assets).
Review fee charged by Swedbank for expatriate files from outside the European Economic Area.
For business accounts of foreign companies, the average lead time mentioned is around four weeks between submitting a complete file and activating the account.
Opening costs and account maintenance fees
The startup costs can surprise those coming from countries where opening is free. Traditional banks often charge:
Opening a bank account in France can generate several types of fees, which vary notably depending on the client’s residency. File analysis fees are particularly applied to non-residents, with a cost generally between €100 and €250, sometimes reaching €500. Account opening fees may be zero for an EU/EEA/Swiss citizen, but can be €250 for a non-EU/EEA client according to some published rates. Finally, monthly account maintenance fees are charged, typically €1 to €30 for an individual, and can be higher for accounts intended for non-residents or professionals.
The concrete examples of a non-resident fee schedule indicate:
– document review for non-resident individual: €250 for EU/EEA/Swiss citizens, €300 for non-EU/EEA;
– account opening: free for EU/EEA/Swiss, €250 for others;
– monthly maintenance: €30;
– account closure: €100;
– review of additional documents (enhanced due diligence): €10 to €500;
– review of transaction documentation: €100 per hour, capped at €3,000.
Conversely, newer digital players and some electronic money institutions offer free or low-cost opening with moderate monthly fees. The table below illustrates some approximate ranges:
| Type of player | Opening fee (indicative) | Typical monthly fees | Special features for expats |
|---|---|---|---|
| Traditional bank (non-resident) | €100–250, sometimes more | €5–30 | In-depth KYC checks, visit often required |
| Traditional bank (EU resident) | €0–50 | €1–5 | Packages with card and services included |
| Electronic money institution (EMI) | €0 | €0–10, depending on profile | 100% online onboarding, no interest or credit |
| Multi-currency platform (Wise, Revolut) | €0 | €0–few € (if premium plan) | Multi-currency accounts, IBAN, but legal status sometimes non-banking |
For an expat, the right compromise often involves combining an account with a Latvian bank – useful for employment, renting, daily life – with one or more digital accounts (Wise, Revolut, N26, etc.) for international transfers and multi-currency management.
Current accounts, multi-currency accounts, and key services
Once the account is open, what services can one expect from Latvian banks? Most offer a common core of features, largely digitalized.
Payment accounts and basic accounts
Standard payment accounts are used to receive salary, a pension, social benefits, or other income, to pay bills, rent, and daily expenses. They come with a European IBAN conforming to the EU format, and provide access to SEPA transfers, direct debits, and card payments.
The EU requires that a basic payment account be made available to any European resident without a local bank account. In Latvia, this account offers essential functions (deposit, withdrawal, payments, transfers) at capped fees. It provides security for expats who might face difficulties accessing banking services due to their employment situation or country of origin.
Multi-currency accounts and exchange
Key point for international management: access to multi-currency accounts. Several banks, and especially digital platforms, allow you to hold multiple currencies simultaneously in a single account, and keep funds in the currency credited, without automatic conversion to euros. Exchange can then be done on demand, from the e-banking space or mobile app.
If an outgoing payment is in a currency for which the balance is insufficient, some solutions offer to auto-convert the necessary amount from another account balance, without going through a manual step.
On the technology side, users generally have access to:
Discover the comprehensive and secure digital services offered to manage your daily finances.
Access all essential operations: account viewing, transfers, currency exchange, and service configuration.
Manage your account from our app with real-time notifications on all your financial activities.
Receive alerts via SMS or email for account movements, exceeding limits, or suspicious transactions.
Benefit from physical and virtual cards, mainly debit, and credit for certain eligible profiles.
Strong authentication with 2FA, 3D Secure, and biometrics, fully compliant with the European PSD2 directive.
Business accounts for expat entrepreneurs
For foreign entrepreneurs who set up a company in Latvia or establish a subsidiary there, traditional banks require:
– the company’s constitutive documents;
– the official list of directors;
– identification of beneficial owners;
– a precise description of the activity (sector, business model, countries where clients/suppliers are located, expected volumes);
– proof of flows (contracts, invoices, business plan, sometimes financial statements).
Opening can be done remotely with some providers (particularly EMIs and platforms like MultiPass or Satchel), with video identification and scanned document submission. Others require the physical presence of the legal representative. The monthly cost for a non-resident business account can start around €35–50 for an EMI, and from €100 for specialized B2B platforms, with opening fees sometimes around £500 or more.
Fintech and digital banks: a major asset for expats
Latvia is one of the most dynamic fintech hubs in Central Europe. There are nearly 150 fintech companies, accounting for a quarter of all start-ups in the country, with particularly active segments in payments, data/IT solutions, P2P/crowdfunding, and crypto/blockchain. This environment translates into a very rich offering of banking and para-banking solutions usable by expats.
Digital banking and multi-currency apps
Several European and international players are particularly well-suited for use in Latvia:
Overview of modern financial service providers, specialized in multi-currency transactions and digital banking services, adapted to individuals and international businesses.
Formerly TransferWise. Provides a multi-currency account (over 40 currencies) allowing you to receive payments via local account details. Uses the mid-market exchange rate with explicit fees. Often more advantageous than traditional banks for international transfers.
Financial app turned bank, with over 60 million customers. Allows sending money in over 70 currencies (often fee-free on weekdays depending on the plan) and offers a multi-currency card usable in over 150 countries. Transfers between Revolut users are almost instant.
German mobile bank present in 24 European markets. Generally offers accounts with no maintenance fees and no fees on foreign currency payments. Very popular among digital nomads.
Institutions like The Kingdom Bank, Satchel, Grey, or MultiPass. Specialized in international services for professionals: multi-currency IBAN, accounts in over 50 currencies, API integration, Mastercard cards, and 100% digital onboarding.
For an expat who earns a salary in Latvia but maintains financial ties with their home country (mortgage, family, investments), these tools often become the centerpiece of their management: receive euros, keep part in euros for daily life, convert at the best rate to the home currency, and send funds at low cost.
International transfer fees: comparing is essential
International transfers are one of the cost items where differences are most pronounced. Large banks often charge:
– a flat fee per international wire (SWIFT), sometimes close to €50;
– an implicit markup on the exchange rate compared to the mid-market rate.
For a transfer of $1,000 USD to Latvia, comparative data between different money transfer services reveals significant differences in fees applied and exchange rates, impacting the final amount received by the beneficiary.
| Provider | Euros received for $1,000 USD (example) |
|---|---|
| Wise | ~€847.93 |
| US Bank A | ~€833.27 |
| US Bank B | ~€830.25 |
| PayPal | ~€815.76 |
With the same amount sent, the difference exceeds €30 between the most efficient and the least favorable solution. On repeated transfers, this quickly amounts to hundreds of euros.
Other players like Western Union, Remitly, MoneyGram, or OFX complete the landscape, each with its positioning: very large agent network for cash pickup, promotions on the first transfer, no fees for certain amount ranges, or no amount limit for high-volume transfers (e.g., OFX with typical transfers of $10,000 USD or more).
For an expat in Latvia, choosing a provider will mainly depend on four factors:
– total cost (shown fees + margin on the rate);
– receiving method (bank account, cash, digital wallet, card);
– speed (from a few seconds to several days);
– security and regulation (registration with relevant authorities, rating, track record).
Cost of living, cash flow, and planning
Understanding the local cost of living is essential to calibrate your cash flow needs and choose your banking tools. In Riga, the cost of living for a single expat is estimated at around $1,500 USD (approximately €1,361) per month, including housing. For a family of four, the monthly bill can reach about €2,903.
Regarding housing, rents vary significantly:
| Type of housing in Riga | City center (€/month) | Outskirts (€/month) |
|---|---|---|
| 1-bedroom apartment | ~€496–523 | ~€339–364 |
| 3-bedroom apartment | ~€874–960 | ~€579–645 |
Utilities (electricity, heating, water, trash) for an apartment of about 85 m² average around €294 per month, with strong seasonal variations. Add to that internet subscription (€10–25), transportation (€30–40 for a monthly pass), food, and leisure. The advantage, for an expat paid in euros, is a purchasing power often higher than in major Western European capitals, even though average Latvian salaries remain lower (around €1,100–€1,300 net per month in Riga).
Latvia offers affordable prices per square meter compared to other EU countries, interesting for programs like the ‘Golden Visa’ or retirement planning. Non-residents can obtain bank financing, generally with a 30–40% down payment and recent annual interest rates around 4.5–5.5%, over terms of 20–30 years. The strongest profiles (stable income, low debt, strong collateral) get the best conditions.
Taxation and account interest: what an expat should know
A point often underestimated by newcomers: Latvia applies a special regime for interest and capital gains for non-residents. Latvian law provides for no local taxation on interest and capital gains generated by accounts held by non-residents. In other words, if you remain a non-tax resident and place savings in a Latvian bank, the interest will not be taxed in Latvia.
Income received under this regime must generally be declared and may be taxed in your country of tax residence. The application of a double taxation treaty is possible. This mechanism constitutes a leverage point for optimization in an international wealth strategy, provided tax compliance rules are scrupulously followed.
For Latvian tax residents, however, the situation is different: Latvia applies a progressive income tax (25.5% on most income up to a certain threshold, then 33% above that, plus an additional 3% surtax on very high incomes), and capital income (interest, dividends beyond profits already taxed at the corporate level, capital gains) is generally taxed at rates around 20–25.5%. Since the rules are detailed and subject to change, consulting a local tax advisor is highly recommended for expats who become Latvian tax residents.
Security, compliance, and risks: a demanding but robust environment
Latvia’s banking history over recent decades explains the current rigor. The country long hosted banks focused on non-resident clients, particularly from former Soviet Union countries. Several institutions were sanctioned for serious deficiencies in anti-money laundering and, in some cases, liquidated. Latvian authorities, under pressure from international bodies like Moneyval and the FATF, responded with a profound overhaul of the AML/CFT framework:
Latvia has implemented strict financial regulatory measures, including the prohibition of accounts for shell companies meeting certain criteria (such as lack of real economic activity, registration in jurisdictions without an obligation to publish annual accounts, or lack of physical premises). At the same time, Know Your Customer (KYC) procedures have been massively strengthened, particularly for non-resident clients. Finally, cooperation between the Bank of Latvia, the Financial Intelligence Unit (FIU), and the Financial and Capital Market Commission has been intensified to improve surveillance and combat illicit financial activities.
For a “clean” expat, these rules mainly mean more paperwork and questions, but an overall safer environment. Banks may request additional documents in case of an atypical transaction, temporarily block funds pending verification, or refuse certain profiles deemed too risky.
Classic cyber threats (phishing, fraudulent websites, email scams or job offer scams) persist. To protect yourself, it is recommended to systematically use two-factor authentication, carefully check site URLs, and be wary of any request for confidential information via email or phone. Major financial platforms also highlight their own security measures, such as fraud detection systems, data encryption, and security teams available 24/7.
Financial management strategies for expats: combining local and international
To optimize financial management in Latvia, an expat is best off thinking in terms of an ecosystem rather than a single bank. Typical needs cover several dimensions:
– a solid local account for daily life (salary, rent, bills, subscriptions);
– one or more multi-currency accounts to manage international financial ties (home country, other countries of work, investments);
– efficient solutions for regular cross-border transfers (family support, mortgage repayment, savings contributions, etc.);
– a coordinated tax and wealth approach between Latvia and the country of residence, possibly other jurisdictions.
Example of a practical combination
A French worker in Riga could, for example, adopt the following architecture:
For expats in Latvia, a multi-account structure and complementary services allow optimizing daily management, travel, and savings.
Open an account with Swedbank or SEB to receive your salary in euros, pay your rent via SEPA transfer, and pay with a local card in stores or a linked transport card.
Use a Wise or Revolut account to convert Latvian euros into Swiss francs, US dollars, or British pounds. Ideal for travel outside the eurozone with an international card.
Open a savings account with a Latvian bank to benefit from no local taxation (if non-tax resident) or a more favorable rate than in the home country.
Take out a private health insurance contract and consult periodically with a firm specializing in international taxation to optimize the combination of social and tax systems.
Considering employment and immigration constraints
Work and residence rules also influence the banking strategy. EU citizens can work immediately but must register after three months. Third-country nationals need visas or residence permits with work authorization, often sponsored by an employer with a legal presence in Latvia. Specific programs exist for talent (EU Blue Card, ICT Permit) and for investors (Golden Visa), with minimum income or investment requirements.
These schemes often involve:
– opening a Latvian account to deposit the minimum investment (e.g., €250,000 for real estate under the Golden Visa, or €280,000 for an investment bank deposit);
– the ability to justify the source of funds across multiple jurisdictions;
– fine-tuned management of flows to demonstrate the financial stability required for residence renewal.
Again, combining a “classic” Latvian bank account for compliance and digital tools to optimize transfers often proves most effective.
Advanced digitalization: a smooth daily banking experience
In practice, an expat’s banking life in Latvia is often simpler than it seems once accounts are set up. Contactless payments are accepted almost everywhere, transport subscriptions can be managed via apps like MOBILLY, and shared mobility services (Bolt, Carguru/OX DRIVE, Citybee) are paid for by card or wallet.
Rents are generally paid by SEPA transfer from a local account. For recurring bills (internet, phone, energy), automatic direct debits or e-invoices are recommended to avoid forgetfulness. The apps of major banks are comprehensive and available, at a minimum, in Latvian, English, and often Russian.
For purchases abroad, cards from local banks work wherever the network (Visa/Mastercard) is accepted, but exchange fees apply. Hence the advantage of multi-currency cards like Wise or Revolut for highly mobile expats.
A few points of attention not to overlook
Despite a generally favorable environment, some recurring pitfalls deserve to be anticipated:
Opening an account for a non-resident is not guaranteed, even with a solid file, and requires targeting several institutions, including EMIs. It is crucial to check hidden fees (transfers, withdrawals, conversions). EMIs offer flexibility but without the €100,000 deposit guarantee. Expatriation entails potentially double tax obligations and reporting requirements for foreign accounts. Finally, regulations, as in Latvia, can evolve quickly, requiring constant legal monitoring.
Conclusion: a modern banking hub serving international mobility
Latvia, and especially Riga, today offers a banking environment aligned with European standards, but with a level of digitalization that rivals the Nordic countries. For expats, this translates into a wide range of choices: solid traditional banks, high-performing multi-currency accounts, innovative fintechs for international transfers, and a deposit protection framework harmonized at the EU level.
Faced with a strict regulatory environment and sometimes high fees for non-residents, the expat can structure their financial situation advantageously. It is advisable to combine a local bank account for daily expenses with one or more specialized digital accounts for optimized multi-currency management and international transfers. This approach should be complemented, if necessary, by appropriate tax and legal advice to transform administrative complexity into a financial asset.
Organizing your international financial management in Latvia then becomes less about “enduring” the banking system and more about leveraging a rich, secure, and highly connected ecosystem, at the heart of the European financial space.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
