Latvia, a member of the European Union, has been actively seeking foreign investment to boost its economy and promote sustainable growth. The government has implemented various policies and initiatives to attract foreign investors and create a favorable business environment.
The Investment and Development Agency of Latvia (LIAA) plays a pivotal role in promoting foreign investment in the country. LIAA provides comprehensive support to potential investors, offering information on investment opportunities, business climate, and incentives available in Latvia.
LIAA acts as a one-stop agency for investors, facilitating the entire investment process from initial inquiries to the establishment and expansion of businesses in Latvia. The agency also assists in identifying suitable partners and suppliers, as well as navigating legal and administrative procedures.
Latvia offers a competitive tax regime to attract foreign investment. The country has a flat corporate income tax rate of 20%, which is one of the lowest in the European Union. Additionally, Latvia has implemented a favorable tax regime for qualifying investment projects, providing tax incentives and exemptions to eligible businesses.
The government has introduced various tax benefits, including reduced corporate income tax rates for specific industries, tax credits for research and development activities, and exemptions on dividends and capital gains for qualifying investors.
The Latvian government has prioritized infrastructure development to enhance the country’s connectivity and accessibility. Significant investments have been made in improving transportation networks, including road, rail, and air infrastructure, to facilitate the movement of goods and people. The development of modern logistics and industrial parks, as well as the expansion of port facilities, has further strengthened Latvia’s position as a strategic hub for trade and commerce in the Baltic region.
Latvia has placed a strong emphasis on fostering innovation and technological advancement to attract foreign investment in high-value sectors. The government has established innovation support programs, research and development grants, and technology parks to encourage investment in cutting-edge industries. Collaboration between the public and private sectors has led to the creation of innovation clusters and incubators, providing a conducive environment for startups and technology-driven enterprises to thrive.
Latvia has proactively pursued foreign investment through a combination of strategic policies and initiatives aimed at creating an attractive investment climate. The government’s commitment to fostering a business-friendly environment, coupled with the country’s strategic location and skilled workforce, positions Latvia as a compelling destination for foreign investors seeking opportunities in the European market.
