All institutional units, including foreign ones, registered and operating in the Republic of Latvia, and natural persons whose households are located in Latvia and who do not leave Latvia for a period of time of over one year (excl. students). Latvian diplomatic, consular and other representative offices abroad shall also be regarded as residents. Institutions located in offshore financial centres are treated as residents of the territories in which the centres are located.
The definition of the concept is consistent with Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union.