Managing Your Finances as an Expat in Latvia
Latvia has used the euro since 1 January 2014, when the lat was converted at a fixed 0.702804 lats to the euro.1 If you're legally resident in the EU, you're entitled to a basic payment account at a bank, even one in a country where you don't live.2 A euro account for rent and daily life, an account in your home currency, and a plan for moving money between the two keeps each side of your budget clear.
Banking in Latvia
Borderless Budget connects to major Latvian banks including Swedbank, SEB, Citadele, and Luminor through secure bank connections, and your accounts in the US, Canada, the EU, the UK, Norway, Iceland and Liechtenstein connect too.
Major banks for expats
- Swedbank
- SEB
- Citadele
- Luminor
Cash vs. card culture
Most larger Latvian employers pay wages by bank transfer to a current account.3 Across the euro area, cash is still the payment method used most often at the till, though most people say they prefer cards or other electronic payments.4
Cost of Living in Latvia
| Category | Typical Cost |
|---|---|
| Rent | EUR 350–650 a month for an apartment in Riga, usually without utilities. Other cities are normally cheaper, though rarely below EUR 130 a month.3 |
| Groceries | Milk about EUR 1.40 a litre, bread EUR 2–5 a kilo and chicken fillet about EUR 9 a kilo at the start of 2026. A restaurant meal runs EUR 20–40.3 |
| Transport | EUR 30 for a one-month Riga public transport ticket, or EUR 1.50 for a 90-minute ticket valid on trams, trolleybuses and buses.5 |
| Healthcare | State-funded care covers EU, EEA and Swiss citizens living in Latvia for work or self-employment, and permanent residence holders; other residents pay the provider's price list. Registering with a family doctor is free, each state-funded service carries a patient's contribution, and a specialist usually needs a GP referral.3 |
In Q2 2026 the average gross monthly wage was EUR 1,886, or EUR 1,401 after taxes.6 Around 30–40% of a monthly wage typically goes on rent and utilities, and consumer prices are close to the European average, with local vegetables and fuel comparatively cheaper.3
Currency Considerations
Prices, wages and rent in Latvia are all in euros, and Latvijas Banka still exchanges lat notes and coins for an unlimited period.1 If you earn in dollars, pounds or another currency, your effective cost of living shifts with the exchange rate even when your spending doesn't, so it helps to see both sides in one place.
Transferring money to Latvia
- Banks in the EU must charge the same for a euro transfer to another EU country as for an equivalent domestic one, so sending euros from an account elsewhere in the EU to a Latvian account costs what a domestic transfer would.7
- A Latvian employer, landlord or utility can't refuse a SEPA transfer or direct debit just because your account is in another EU country, as long as they accept such payments from domestic accounts.7
- If you earn in dollars or pounds, convert into euros in a few planned transfers each month rather than many small ones, and compare the rate you get with the mid-market rate each time.
- Keep the month's rent in euros before the first of the month, so the payment never depends on that day's exchange rate.
Borderless Budget tracks all of your accounts, your home-country bank, your Latvian bank, and services like Wise or Revolut, in a single dashboard. Exchange rates update daily, so your budget always reflects where things actually stand.
Tax Considerations for Expats in Latvia
- You can be a Latvian tax resident by declaring a place of residence in Latvia or by being present 183 days or more in any 12-month period8, and residents are taxed on worldwide income.9
- Income is taxed at 25.5% up to EUR 105,300 a year and 33% above it, with an extra 3% on the part of total annual income over EUR 200,000.9 In 2026 the non-taxable minimum is EUR 550 a month, and employees pay 10.5% in social insurance contributions.3
- The tax year is the calendar year, and annual returns are filed between 1 March and 1 June of the following year, or 1 April to 1 July when income exceeds EUR 105,300.10
- The US taxes citizens on worldwide income wherever they live, and offers the foreign earned income exclusion and foreign tax credit11. The US and Latvia have an income tax treaty dating from 1998.12
Budgeting Tips for Expats in Latvia
- Plan for move-in costs: landlords may ask for 1–3 months' rent in advance, and a security deposit can be up to two months' rent.3
- Ask whether a quoted rent includes utilities. If it doesn't, budget water, electricity, gas and internet as their own line.
- Budget your Latvian life in euros. Rent, groceries and the Riga ticket are all priced in EUR, and converting each one in your head adds noise, not clarity.
- Keep home-country bills, like subscriptions, loans and a phone plan, in their own currency so you can see what Latvia actually costs you.
- Watch the exchange rate between the euro and the currency you earn in. If you're paid in dollars, the same rent can cost noticeably more or less from one quarter to the next.
How Borderless Budget Works in Latvia
Connect your Latvian and home-country banks
Link your Swedbank, SEB, Citadele, or other Latvian bank alongside your home-country bank. Transactions from all accounts sync automatically into one dashboard.
Budget in EUR and your home currency
Your budget is set in your home currency, and Borderless Budget automatically converts every transaction, whether it's in euro or your home currency. You can toggle any transaction to see the original currency amount. Exchange rates update daily, so your budget always reflects reality.
Automatic categorization
Transactions from Latvian merchants are automatically categorized. Categorization improves as you use the app, learning your patterns across both currencies, so you spend less time sorting transactions and more time living your life in Latvia.
See the impact of exchange rates
When exchange rates shift, your combined budget view updates automatically. You'll see exactly how currency movements affect your overall spending, no surprises, no guesswork.