Riga is drawing a growing number of international entrepreneurs, and the gap in cost of living with Paris is a big part of the reason. Rent, transport, dining, taxation: here's what it actually changes for your budget, line by line, when you're running an SIA from Latvia, a eurozone capital in the heart of the EU.
Cost of Living Comparison Between Riga and Paris
Here's the monthly budget gap between the two cities, line by line, for a comparable entrepreneur profile:
| Expense | Riga | Paris | Monthly gap |
|---|---|---|---|
| Rent (50 m² flat, city centre) | €600 | €1,200 | − €600 |
| Public transport (monthly pass) | €30 | €75 | − €45 |
| Petrol (average price per litre) | €1.30 | €1.60 | − €0.30/L |
| Restaurant meal | €10 | €15 | − €5 |
| Broadband internet | €20 | €30 | − €10 |
| Private health insurance (from) | €25 | — | — |
Riga vs Paris: the budget gap adds up fast over a year.
Rent and Housing
Rent is often the heaviest expense for expats, and it's where the gap is widest: a 50 m² flat in the city centre costs roughly half as much in Riga as in Paris, saving €600 a month, or €7,200 a year.
Transport
Public transport in Riga is efficient and affordable: a monthly pass costs around €30, against more than €75 in Paris — over €540 in savings a year on this expense alone. For those who prefer driving, petrol is also cheaper, at around €1.30/litre versus €1.60/litre in Paris.
Dining and Groceries
Eating out in Riga stays notably cheaper: a restaurant meal costs €10 on average, against €15 for a comparable meal in Paris. Grocery shopping follows the same pattern, with an average basket around 20% cheaper in Riga.
Services and Healthcare
Essential services like internet or electricity are also cheaper in Riga: a broadband connection costs around €20 a month, against €30 in Paris. On healthcare, the Latvian system offers quality care at costs well below France's, and private insurance follows the same logic.
Good to know
In Latvia, private health insurance can offer full coverage from as little as €25 a month.
Tax Savings With a Latvian SIA
Setting up an SIA in Latvia mainly changes when tax becomes due. As long as profits stay in the company, they aren't taxed: 0% corporate tax on the reinvested share. It's only when you distribute dividends that a 20% rate applies — around 25% once the gross-up factor is taken into account — against 31% in France on the year's profits, whether distributed or not. In concrete terms, on €100,000 of profit fully reinvested, immediate taxation in Latvia is zero, against roughly €31,000 in France the same year. If you later distribute those profits, the Latvian tax bill lands closer to €20,000–€25,000, but only when the distribution happens, not before.
Worked Example: Relocating an Entrepreneur to Riga
Take an entrepreneur with €100,000 in annual profit. On cost of living alone (rent, transport, services), moving to Riga already represents several thousand euros in savings every year compared with Paris. If, on top of that, profits stay in the company instead of being distributed straight away, the tax gap with France can add tens of thousands of euros in cash that doesn't go out the door in early tax.
The exact total depends on your lifestyle, how often you distribute dividends and your personal situation: savings on rent, transport, dining and services add up alongside a more flexible tax regime, without a single figure applying to everyone.
Riga or Paris: The Bottom Line for Your Cash Flow
Moving to Riga has a real financial impact for an entrepreneur: a notably lower cost of living than Paris, and a tax regime that lets cash flow breathe as long as profits stay in the company.
If you're considering a move, Riga is worth studying seriously. Contact us to explore business opportunities in Riga and optimise your tax position.