Latvia has emerged as a European fintech hub, offering favourable regulation and unmatched accessibility. Find out why this country has become a must for fintech entrepreneurs, and how you can take advantage of it.
Why Is Latvia a Key Fintech Hub?
Latvia has positioned itself as a key player in Europe's fintech space. With a dynamic regulatory environment and active support from the local regulator, the FKTK (Financial and Capital Market Commission), the country is attracting a growing number of innovative companies.
The Latvian Fintech Ecosystem
Latvia's fintech landscape is marked by rapid growth, backed by advanced digital infrastructure and an environment favourable to innovation. Companies benefit from easy access to EU markets, a skilled workforce and competitive operating costs.
The Role of the FKTK Regulator
The FKTK plays a crucial role in helping fintechs establish themselves in Latvia. This regulator ensures careful supervision while offering efficient licensing procedures. Its proactive approach helps companies navigate the regulatory framework with ease.
Good to know
The FKTK offers pre-application consultations to help companies better understand regulatory requirements before submitting their licence application.
Fintech Licences Available in Latvia
To operate legally in Latvia, several types of fintech licences are available, each suited to specific needs: EMI (Electronic Money Institution), PSP (Payment Service Provider) and VASP (Virtual Asset Service Provider).
Details on EMI, PSP and VASP Licences
The fintech licences available in Latvia allow a wide range of financial activities. EMIs can issue and manage electronic money, PSPs facilitate payment transactions, and VASPs handle services related to digital assets.
Application Process and Related Regulations
The licence application process in Latvia is designed to be transparent and fast. Here are the typical steps:
- Preparing and submitting the application file to the FKTK.
- Analysis and assessment by the FKTK.
- Obtaining regulatory approval.
- Launching operations under licence.
Each step is backed by clear FKTK guidelines, helping companies make sure they meet all the required conditions.
Leading Fintech Companies in Latvia
Latvia is home to several well-known fintech companies that have transformed the financial landscape, both locally and internationally.
Case Studies: Mintos and Twino
Mintos and Twino are two examples of Latvian success stories in the fintech sector. Mintos is a peer-to-peer lending platform that revolutionised access to credit in Europe. Twino, for its part, has diversified its offering to include lending and investment services.
Key figures
Fintech is one of the most dynamic sectors of Latvia's startup ecosystem, alongside SaaS and deeptech. The country now has around 500 to 570 active startups (+11% in 2025-2026), with almost €78 million invested in 2025 — a 127% increase year on year.
How Mintos and Twino Have Boosted Latvia's Fintech Ecosystem
These companies haven't just strengthened the local fintech ecosystem — they've also driven employment and innovation in Latvia. Their success attracts other startups and investors, creating a virtuous circle of growth and development.
Latvia's Advantages Compared With Other EU Countries
In terms of timelines, costs and accessibility, Latvia offers distinct competitive advantages compared with other EU countries. This translates into faster time-to-launch and substantial savings on operating costs.
Latvia vs Germany and France: Timelines, Costs and Accessibility
Entrepreneurs benefit from streamlined registration and licensing procedures, backed by a responsive administration and an electronic signature recognised across the EU. Setup costs generally run 25 to 50% lower than in Western Europe. Access to the European market is immediate, with no significant barriers.
Why Fintech Founders Choose Latvia
The combination of clear regulation backed by the FKTK, competitive costs and direct access to the European single market explains why a growing number of fintech founders are choosing Latvia to launch or grow their business.
Practical Tips for Launching Your Fintech in Latvia
For entrepreneurs looking to set up in Latvia, proper preparation and access to the right resources are essential.
Steps to Set Up in Latvia
Here's a checklist to help you get started:
- Carry out a thorough market study.
- Prepare your licence application carefully.
- Engage a local adviser to help with administrative processes.
- Set up a company structure and office in Latvia.
Build the Right Local Partnerships in Latvia
It's strongly recommended to build relationships with local partners for hiring and HR management. Business networks and chambers of commerce can also offer valuable support.