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Economy and Banking Sector of Latvia

Northern Europe
EU Status
member since 2004

Located in Northern Europe, Latvia is one of the Baltic States and a member of the European Union since 2004.


EUR (Euro)
Population  (2019)
1,919,968  (-0.01%)
Nominal GDP (2019)
30.5 bln EUR  (+0.03%)
Credit Ratings (as of Nov 2020)

Latvia is a developed country with high-income economy. Main industries of Latvian economy are processed foods and wood products, textiles, processed metals, pharmaceuticals, railroad cars, and synthetic fibers.


Withholding tax rates in Latvia are 0.0-10.0 %. Latvia signed 57 double taxation agreements.
Latvia signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Latvia has FATCA agreement with the U.S. in effect since 27 June 2014 (Intergovernmental Agreement Model 1).

Banking Sector

Number of Banks
Consolidated Banking Assets (2019)
22,134.37 mln EUR  (-1.99%)
Deposit Guarantee
100,000 EUR

Latvia banking and financial system has been developing rapidly since 1991 when Latvia declared its independence from the Soviet Union. Latvian banking sector is relatively small, highly concentrated, with high share of foreign capital. Most of the foreign-controlled banks are originated from Scandinavian countries (Denmark, Finland, Norway and Sweden); most of the domestic banks are privately owned. The majority of Latvian banks operate as universal banks, however there are also specialized banks, focused solely on wealth management or corporate banking. More than a half banks in Latvia provide their products and services to non-residents (offshore banking).

Major Banks

See Also

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