Why Set Up Your Business in Latvia?
Once a part of the Soviet Union, Latvia is a country in Eastern Europe. Spanning over 62,249 square kilometers of land and 2,340 square kilometers of water, Latvia is the 125th largest nation in the world with a population of roughly 1.9 million. The strategic location has its geostrategic significance to the country’s economic growth where it provides excellent business opportunities for reaching the four major growth markets – Russia, Estonia, Lithuania and Belarus.
An Overview of Latvian Economy
Latvia is a member state of the European Union (EU) and it became the member of the Organisation for Economic Co-operation and Development (OECD) since 2016. The Latvian economy is based on service industries including transportation, information technology, and financial services. Agriculture, chemicals, logistics and woodworking are the four pillars of the Latvian economy while other sectors like textiles, food processing, machinery production and green technologies are contributing to the fast-growing economy
The Latvian government has rolled out several incentives to boost investment including tax incentives, labor-related incentives, incentives for research and development, and state credit guarantees. One thing worth mentioning is the flat corporate income tax rate of 15%. Furthermore, various sectors which include energy; computer; forestry, farming, and woodworking equipment; transportation (including aviation); and agricultural products yield good investment opportunities. Latvia’s increased competitiveness and the advantageous economy has indeed increased its potential for investments.
Why Invest in Latvia
Latvia is one of the key players in the European Union, and it has become an ideal investment destination. The openness of global trade and investment, pro-business regulations and favorable investment climate, are the impetus behind the rapidly growing economy. The increasing dynamism of Latvia’s economy has been supported by fiscal consolidation that has kept government spending under control and ensured macroeconomic stability. Apart from this, being a part of the European Union (EU), Latvia offers foreign investors in the country free access to market of other countries (which are part of the EU). This allows investors to do business without borders and expand their business base in the EU.
Here is the quick view of why investing in Latvia?
- Free access to large markets
Latvia benefits from its unique geographical and cultural position – a strategic location for business operations in the EU and emerging markets of eastern neighbours. In addition, Latvia is a natural gateway between the US, EU and Asia (especially Russia/CIS).
- Modern transport infrastructure
Latvia has three major ice-free international ports, Riga, Liepaja and Ventspils, that are closely connected with the country’s land-based infrastructure, which includes an extensive rail, road and pipeline system.
- Free trade
The free trade principles are the backbones of Latvia’s external trade and customs policy. As an EU country, a member of Schengen and an active participant in the World Trade Organization, Latvia enjoys all the benefits of free and open trade in the world’s markets. Furthermore, customs and border procedures have been standardized for effective coordination with trade partners across the globe.
Latvia’s political stability and dynamic economy are the main drivers that make the nation to become one of the fastest growing countries in the European Union. If you are expanding your international footprints, Latvia is a place that has a lot to offer!