Why invest in Latvia?

Over the past five years Latvia's economy has been growing rapidly and developing across all sectors of industry. With the development came new business opportunities, workplaces, products and innovations. Today, affected by recession, the economy is recovering from the downturn with a new vision, priorities and initiatives. The state has set as their principal aim to encourage foreign direct investment and reduce the burden of bureaucratic obstacles.

The following are our strengths that make Latvia attractive to foreign investors:

1. Latvia’s geographic position is an advantage by itself – it is in the middle of the three Baltic States, bordering with Russia and right next to the Nordic countries which provides excellent access to markets. As a result, transportation and logistics costs are lower and delivery times – shorter. Historically, a major trading centre, Latvia’s resource is its past legacy combined with today’s knowledge, work and vision of future.
   
    
2. Businesses seek to decrease costs while maintaining high quality standards. Low production costs and a skilled work force are our strong points. With the new government initiative to reduce taxes and bureaucratic formalities, business start-up costs have decreased significantly as are recession-induced lower costs in construction and building, rent and acquisition of industrial real estate.
    
3. In Latvia, there are four Special Economic Zones operating under special taxation laws. Three of the Zones are located in ports. For companies operating in Special Economic zones taxation laws stipulate 80% rebate on real estate and corporate income tax. Tax deductions may constitute up to 50% of the amount invested.
    
4. Although the current economic slowdown has had a negative impact on Latvia’s unemployment rate (16.7% in April, 2010), this presents businesses with an opportunity to employ skilled work force at recession rates. For knowledge-based industry availability of qualified work force –  highly skilled, motivated, multilingual – is one of the principal assets. Latvia has an established tradition of academic and vocational education which provides a skilled work force for high-tech industrial sectors as well as research and innovations.
   

Currently foreign entrepreneurs will find attractive offers for merger and acquisition  and  joint ventures.

In 2004 Latvia joined  NATO and the European Union. Since accession to EU, foreign direct investment in Latvia has been growing rapidly. Over the years of fast and dynamic development, Latvia has created an open and attractive environment for local and foreign entrepreneurs, the key principle being equal support to both domestic and foreign entrepreneurs. A foreign investor may become the sole founder and owner of a company; foreign companies registered in Latvia are entitled to buy land and property; repatriate their profits and capital. Foreign investors in Latvia are represented by the Foreign Investor's Council which mediates between entrepreneurs and the government.

Latvia ranks among the top thirty countries worldwide in terms of business start-up time. Through efficient networking between the State Enterprise Register and the banking sector it takes just one day to register a new company. 

If you seek good investmemt return - due to recession-induced lower costs and access to resources - Latvia is a place to invest.

We advise to invest in green technologies, healthcare services, information technologies, life sciences, metal and mechanical engineering, transport and storage, wood processing.