Subspace learning based transfer learning methods commonly find a common subspace where the discrepancy of the source and target domains is reduced. The final classification is also performed in such subspace. However, the minimum discrepancy does not guarantee the best classification performance and thus the common subspace may be not the best discriminative. In this paper, we propose a latent elastic-net transfer learning (LET) method by simultaneously learning a latent subspace and a discriminative subspace. Specifically, the data from different domains can be well interlaced in the latent subspace by minimizing Maximum Mean Discrepancy (MMD). Since the latent subspace decouples inputs and outputs and, thus a more compact data representation is obtained for discriminative subspace learning. Based on the latent subspace, we further propose a low-rank constraint based matrix elastic-net regression to learn another subspace in which the intrinsic intra-class structure correlations of data from different domains is well captured. In doing so, a better discriminative alignment is guaranteed and thus LET finally learns another discriminative subspace for classification. Experiments on visual domains adaptation tasks show the superiority of the proposed LET method.