Ekonomika

INVEST IN LATVIA

Latvia offers a wide variety of competitive advantages for investors, which make Latvia a perfect place for doing business. These include cost effectiveness, a highly skilled workforce, well-developed infrastructure, and macroeconomic stability. Investors also enjoy easy accessibility to other markets in the region, as well as access to European Union Structural Funds.

WHY LATVIA

• Accessibility to Large Markets: Latvia has a unique geographical and cultural position, providing a strategic location for business operations targeting developed economies of the EU and emerging markets of eastern neighbours. Latvia is a natural gateway between the US, EU and Asia (especially Russia/CIS). Advantages enabling successful trade include:
  • Advanced transport infrastructure
  • Free trade
  • Export experience and support

• Skilled and Motivated Workforce: The Latvian labour force is multi-lingual and relatively well educated, ready to take on new challenges and is highly motivated. Countries with better-trained or better-motivated workforces than Latvia are few and far between. Latvia’s workforce is ranked in the top five in the world in terms of university students per capita. Latvians take pride in having strong work ethics being an integral part of Northern European culture, while at the same time having and extensive experience and knowledge of doing business with Russia
  • Higher education with four largest universities (Riga Technical University, University of Latvia, Riga Stradins University and Latvia University of Agriculture)
  • Technical and vocational skills
  • Cultural and language skills
  • Training incentives

• Developed infrastructure: Latvia offers all the infrastructure and services companies need to operate, at levels that meet or exceed European standards
  • Business development centers
  • Information and communication technology
  • Transportation and logistics
  • Other services

• Macroeconomic and Political Stability: Latvia is a fully integrated member of all major economic and political structures including the European Union, NATO, WTO and OECD, advancing trade, peace and freedom in Europe and the world. Its position in the global market offers investors both opportunity and stability.
  • Macroeconomic security
  • Political and legal stability

• Business Friendliness: As a small country in today’s globalized world, Latvia recognizes the importance of attracting foreign investment in order to sustain economic development. As a thriving democracy, Latvia has consistently pursued liberal economic policies and welcomes investments that foster principles and benefits associated with free markets. Indeed, World Bank’s report Doing Business 2016 ranks Latvia as 22nd out of 189 countries for ease of doing business, measuring quantitative indicators of regulations and the protection of property rights
  • Streamlined bureaucracy
  • Collaboration with investors
  • Significant EU Structural Funds available

• Cost Effectiveness: Latvia offers significant cost advantages to investors, including competitive labour and real estate expenses, as well as competitive tax rates. Coupled with strong productivity in manufacturing and services, Latvia provides investors with a highly cost-effective environment for business, producing compelling returns on investment. Four Latvian cities ranked in top 10 in a variety of categories of the annual fDi Intelligence report, “fDi European Cities and Regions of the Future 2016/17 Rankings”. The capital of Latvia Riga, along with Jelgava and the port cities Liepaja and Ventspils convincingly occupy top spots in the categories for cost-effectiveness, connectivity and foreign direct investment (FDI) strategy. Latvia offers international competitive workforce at every level of expertise and at very competitive costs. Latvia is among the leading European countries in regards to wage adjusted labour productivity (apparent labour productivity by average personnel costs). (Eurostat, 2016)
  • Labor expenses
  • Real estate
  • Free economic zones
  • Tax rates – the lowest corporate income tax rates (flat rate of 15 %) in Europe, personal income tax is also at a low flat rate of 23 %. Dividends are taxed at 10 %.

• Access to Suppliers and Resources: Successful business of any kind requires integration into a flexible and reliable supply chain, with partners who are able to make their own products and services available at economic levels of cost, quality and speed. Investors in Latvia can take advantage of a number of opportunities to find and work with domestic suppliers, enabling successful workflow and production.
  • Identifying appropriate suppliers
  • Joint-venture and M&A opportunities
  • Access to infrastructure
  • Natural resources

• Innovation and R&D Opportunities: Latvia continues to build on its traditions of innovation and product development. Innovation is recognized as crucial for the country’s development of a knowledge-based and sustainable economy, as well as Latvia’s overall national and social development. In order to foster research and development (R&D) in private and academic sectors, the national government provides funding and administers EU Structure Funds, offering grants and providing leadership especially through LIAA.
  • Government priority and funding
  • Research competencies and institutes
  • LIAA support

• Quality of Life: Latvia offers a full range of services, recreational activities and natural beauty for investors to enjoy. Some highlights:
  • Modern conveniences
  • Culture and recreation
  • City life in Riga
  • Nature’s beauty

ADDITIONAL INFORMATION
Central Statistical Bureau of Latvia: www.csb.gov.lv/en
Central Bank of Latvia: www.bank.lv/en
Latvian Institute: www.latvia.eu
Fitch Ratings: www.fitchratings.com
Moody’s: www.moodyseurope.com
S&P Global Ratings: www.standardandpoors.com
Rating and Investment Information: www.r-i.co.jp

Click here to download a leafleat: Latvia – a great place for business
Click here to download a leafleat: The Economic Profile of the City of Riga