Latvia

Latvia offers EU and Eurozone membership at a fraction of Western European costs. For entrepreneurs and digital nomads seeking affordable European residence with full Schengen mobility, Latvia provides a practical entry point with competitive taxation and a growing tech sector.

Latvia has a progressive personal income tax with rates of 20%, 23%, and 31% depending on income levels. A flat 20% tax applies to capital gains, dividends, and interest. Corporate tax is 20%, but only on distributed profits, meaning retained earnings are tax-free. There is no wealth tax or inheritance tax.

Residency by investment requires real estate purchase of at least EUR 250K in property within Riga or other major cities, or EUR 50K in designated development areas, plus a 5% state fee. The permit is valid for 5 years and is renewable. Investment must be in a single property, and the investor may not rent out the property for the first 5 years.

Latvia also offers a startup visa for innovative entrepreneurs. The country joined the EU in 2004 and the Eurozone in 2014. Citizenship requires 5 years of permanent residence plus Latvian language proficiency.

Latvia offers a "micro-enterprise" tax regime for small businesses and a favorable environment for IT companies. Riga offers excellent cultural amenities and a growing international business community.