Fintech firms pay Latvia over €90 million in taxes

The fintech space of Latvia is rapidly expanding, not only in terms of the number of players involved and people employed, but also in terms of total revenue generated.

As small as it is, the EU country is now registering impressive results, just as it marks the onset of a new crypto era in Europe by issuing its first MiCA licenses.

Fintech firms pay Latvia over €90 million in taxes

The Latvian industry centered on advanced financial technologies is accelerating in its development, Invest in Latvia revealed this week.

The information portal, the main purpose of which is to attract foreign investors to the Baltic nation, released a few stats supporting the claim on Friday.

According to a post on its website, nearly 130 companies are currently engaged in the sector, employing more than 3,600 people in the EU member state with a population of less than 2 million.

Their combined turnover approaches 400 million euros a year (nearly $480 million), and they pay the government more than 91 million euros in annual taxes (almost $107 million), the report detailed.

The figures were highlighted during a working ‘Fintech Breakfast’ with participants trying to answer the question: “What is needed to realize Latvia’s fintech ambitions?”

The meeting was hosted by the RTU Riga Business School (RBS) and was organized by the Fintech Latvia Association and the RBS Baltic Financial Center (BFC).

Guests were acquainted with the latest numbers, with particular emphasis on the industry’s impact on the national economy and potential for future strengthening.

The data has been compiled as part of a pilot project to create a comprehensive database of domestic fintech platforms called “Latvian Fintech Observatory.” Presenting the tool, BFC Director Kristīne Dambe stressed:

“We can shape our own narrative and learn from our neighbors, but it is crucial to base decisions on data reflecting real trends.”

Latvian Minister of Economy Viktors Valainis urged to position Latvia as a place where fintech businesses can grow and develop both regionally and globally.

“We all want Latvian-founded companies not only to strengthen the local economy but also to become export-capable technology firms,” he elaborated.

Mārtiņš Kazāks, governor of Latvijas Banka, the Latvian central bank, highlighted that the country has talent, entrepreneurs, and sound financial infrastructure, insisting:

“Latvia can become a significant European fintech hub not merely because of ambition, but because the foundations are already in place.”

Latvia aims to be the next MiCA gateway in the Baltics

Officials and representatives of the industry agreed in their discussions on the need for predictable regulation and cooperation between banks and fintechs.

The key goal is to leverage Latvia’s advantages in the crypto space, particularly in light of the already started licensing under the EU’s new Markets in Crypto Assets (MiCA) rules.

Earlier this week, Invest in Latvia announced that the country has issued its first MiCA licenses, signaling its ambition to become one of Europe’s most friendly jurisdictions for crypto platforms.

The news came from a press conference of the monetary authority in Riga, which unveiled that it has authorized two companies, BlockBen and Nexdesk, to work from Latvia as providers of crypto-related services to customers across the European Union. The portal emphasized:

“The licenses allow both firms to operate across all EU member states under MiCA’s passporting regime, positioning Latvia as a competitive entry point for global crypto and Web3 businesses seeking a regulated base inside the single market.”

Latvia is thus taking a path, well-trodden by another Baltic nation, right across its southern border. Lithuania was recently ranked third in digital-asset exchange Bybit’s World Crypto Rankings report for 2025, quoted by Cryptopolitan, and praised as a MiCA hub.

Invest in Latvia commented:

“Looking at our neighbor … we see what is possible when a country backs innovation with an innovative regulatory framework. Latvia intends to build its own success story.”

Over 100 companies in various corners of Europe and the world, from Poland to Japan, are exploring Latvia as potential base for their EU operations, its central bank revealed during the briefing. Five have already submitted their applications, while another 12 are preparing to do so, the regulator added.

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