Today the banking system of Latvia consists of two levels, the first level is the Central Bank of Latvia, and the second is commercial banks. The Central Bank of Latvia was founded in 1990. He is independent of the government and exercises control over the activities of other financial institutions. The main functions of the Central Bank include managing monetary policy and ensuring the stability of the banking sector. Both local banks (Rietumu Banka, LPB Bank, Meridian Trade Bank, etc.) and representative offices of foreign banks (Swedbank, DNB banks) operate in Latvia. Latvian banks offer a wide range of services to their clients, including current accounts, traditional savings accounts, asset management services, and investment accounts. A bank account can be opened by both a resident and a non-resident of this state.
Opening a corporate account in Latvia
A corporate account in Latvia can be opened either by a company registered in the country or by a foreign legal entity. The requirements for non-resident companies are much more stringent and it becomes a very difficult task to open an account. After choosing the most suitable bank, you need to collect a complete package of documents. It is also necessary to prepare a detailed description of the business and confirm the legality of the origin of funds by providing convincing documents.
Features of opening an account:
Banks do not open accounts for offshore companies registered in tax-free jurisdictions;
Banks do not open accounts for companies with nominee structures;
Confirmation of the real address of doing business;
To open an account, a personal meeting with a bank representative is required.
Opening a personal account in Latvia
Latvian banks open personal accounts for non-residents only if they have a connection with the country. Such a connection can be obtaining a residence permit or buying real estate in the territory of Latvia. Also in Latvia, a non-resident can open a deposit or investment account. The minimum amount of funds required for placement depends directly on the bank. When opening an account, the client must provide identity documents, and confirm the welfare and source of funds.
Benefits of opening an account in Latvia
Deposit insurance system;
Convenient territorial location of Latvia;
Affordable service rates.
Documents for opening a personal or corporate account in a Latvian bank
To start the process of opening an account for your company, you will need the following information:
- A completed questionnaire (with a detailed description of the company’s activities and information about the company’s main partners for incoming and outgoing payments) – the questionnaire form is sent upon request;
- Resume (CV) for representatives and beneficiaries of the company with a description of work experience and information about education;
- Copies of identity documents of all representatives and beneficiaries of the company;
- Corporate documents of the company, depending on the country and type of registration (basic: extract from the register or similar documents, where representatives and beneficiaries of the company are visible, charter);
- Bank statement of the company for the last 6 months (if there is or was a bank account).
Banks of Latvia, where accounts are opened for foreigners and non-residents
If we consider the current situation and compare it with the situation 5-10 years ago, then the requirements for citizenship and tax resident status have become more complicated. However, there are enough banking organizations in the country where they open accounts for foreign citizens and work with both residents and non-residents. The main banks for foreigners for 2021 are:
- BlueOrange (former Baltikums Bank);
- Citadel Bank;
- PNB Bank (formerly Norvik Banka);
- Pasta Banka (Recommended);
- Rietumu Bank;
- Baltic International Bank;