Remote Banking in Latvia

Banking in Latvia: A Comprehensive Guide for Expats and Foreigners

If you are an expat or a foreigner looking to set up a bank account in Latvia, you will find the process relatively straightforward. Latvia has a stable and efficient banking system, making it an attractive destination for international banking services. In this guide, we will cover everything you need to know about banking in Latvia, including banks accepting foreigners, KYC (Know Your Customer) requirements, availability of Wise and Revolut, ATM fees, multi-currency options, the account opening process, currency exchange tips, and tax residency clarification.

Banks Accepting Foreigners

Most major Latvian banks are open to accepting foreign customers. Some of the popular banks that cater to expats and foreigners include Swedbank, SEB Bank, Citadele Bank, and Luminor Bank. These banks offer a wide range of services and have branches across the country, making banking convenient for international customers.

KYC Requirements

Latvian banks have strict KYC requirements in place to prevent money laundering and ensure the security of the financial system. When opening a bank account, you will need to provide identification documents such as a passport or national ID card, proof of address, and sometimes a reference from your current bank. It is essential to have all the necessary documents in place to expedite the account opening process.

Wise/Revolut Availability

Both Wise (formerly TransferWise) and Revolut are popular fintech services that are available in Latvia. These platforms offer competitive exchange rates and low fees for international money transfers and currency exchange. You can easily link your Latvian bank account to Wise or Revolut to manage your finances efficiently and cost-effectively.

ATM Fees

ATM fees in Latvia can vary depending on the bank and the type of transaction. Some banks may charge a small fee for using ATMs that belong to other networks. It is advisable to check with your bank regarding ATM fees and look for ATMs that belong to your bank's network to avoid additional charges.

Multi-Currency Options

Many Latvian banks offer multi-currency accounts, allowing you to hold and transact in different currencies. This can be beneficial if you frequently deal with foreign currencies or travel abroad often. Having a multi-currency account can help you save on conversion fees and simplify international transactions.

Opening Process

To open a bank account in Latvia as a foreigner, you will typically need to visit a branch in person. You will be required to fill out an application form, provide identification documents, proof of address, and sometimes a reference from your current bank. The bank will conduct a background check and verify your documents before opening the account. The process usually takes a few days to complete.

Currency Exchange Tips

When exchanging currency in Latvia, it is essential to compare exchange rates offered by different banks and exchange offices. Avoid exchanging money at airports or tourist areas, as they often have higher fees and less competitive rates. Using Wise or Revolut can also be a cost-effective way to exchange currency at the mid-market rate.

Tax Residency Clarification

If you are a foreigner living in Latvia, it is essential to understand your tax residency status. Latvia follows a territorial taxation system, which means that residents are taxed on their worldwide income, while non-residents are only taxed on income earned in Latvia. To determine your tax residency status, you should consult with a tax advisor or the Latvian tax authorities.

In conclusion, banking in Latvia as an expat or foreigner offers a range of options and services to meet your financial needs. By choosing a reputable bank, understanding the KYC requirements, utilizing fintech services like Wise and Revolut, being mindful of ATM fees, considering multi-currency options, following the account opening process diligently, exchanging currency wisely, and clarifying your tax residency status, you can navigate the Latvian banking system with confidence and ease.