Intel
ISO: LVA Discount Protocol

Latvia

Entry Threshold €50,000
Asset Class Business Equity
Time to Residency 1-3 Months
Corporate Tax 0% (Retained)
Latvia represents the "Discount Protocol" of the EU. It offers the absolute lowest capital entry point for Schengen residency via the €50,000 Business Investment route, combined with a 0% corporate tax regime.

Strategic Rationale

While other EU jurisdictions demand €250k–€500k, Latvia remains the backdoor for the capital-conscious investor. By investing just €50,000 into the equity of a Latvian company (plus a €10,000 state fee), you secure a temporary residence permit valid for 5 years.

The "0% Tax" Engine: Latvia utilizes the Estonian Tax Model. Corporate income tax is 0% on retained earnings. You are only taxed (20%) when dividends are distributed. This makes it an exceptional jurisdiction for holding companies and remote digital businesses compounding capital.

The Deployment Timeline
Day 0 Company Formation
Month 1 Equity Injection (€50k)
Month 2 Visa Approval & Travel
Month 3 ID Card Issued

Critical Analysis

The Alpha
Lowest Cost: ~€60k total sunk cost vs €250k+ elsewhere.
Schengen Velocity: One of the fastest processing times (30-60 days).
Fiscal Efficiency: 0% Corporate Tax allows for rapid compounding.
The Risks
Geopolitics: NATO border with Russia/Belarus creates perceived stability risk.
Banking: Opening tier-1 bank accounts can be difficult for non-residents.
Language: Permanent Residency (after 5 years) requires A2 Latvian.

Fiscal Protocol

The "Micro-Tax" Setup: For solopreneurs, Latvia offers a "Micro-Enterprise Tax" regime (though restricted recently). The standard 0% CIT model is generally preferred for holding structures.

Annual Renewal: The residency card must be registered annually. The company must maintain minimum tax payments (~€50/month in taxes) to demonstrate economic activity, preventing "shell company" disqualification.