The EACC is partnering with the embassies of Latvia, Lithuania and Estonia to host a “Doing Business with the Baltics” trade and investment seminar on September 25, 2018 (Click Here to Register). To prepare for the event, we asked the local Honorary Consuls to provide “country snapshots” showcasing the business opportunities in each of the three states. Please find the provided Latvian country overview below.
Situated at the very heart of the economically and culturally vibrant Nordic-Baltic region, companies based in Latvia can successfully target both the developed economies of the European Union (EU) and the emerging markets of its eastern neighbors. With its relatively small population of 2 million, Latvia is not a major market, but the country’s key advantage is its location and talented labor force. Businesses operating in Latvia can take advantage of its EU membership privileges, which enable the free movement of goods, services, capital and labor, and its Euro-Area location.
Some of the most common reasons that foreign investors have cited for choosing Latvia is its highly qualified workforce with superb foreign language skills at competitively low cost; convenient and central geographic location; and developed logistics sector with highly suitable infrastructure. Additionally, Latvia can offer its scientific potential to enhance business development in various fields. The country has a number of scientific institutions that already cooperate in international projects and can offer their services. At the same time, Latvia continues to support the development of a start-up ecosystem, seeks to promote technology transfer and has also developed a network of regional business incubators.
Latvia ranks 14th in the Ease of Doing Business Report (2017) by the World Bank. The country has a relatively low tax rate allowing foreign companies to spend a smaller proportion of their profits on taxes. Latvia also has a highly developed communication infrastructure. With one of the fastest internet connections in the world, the Latvian IT sector is bustling, providing services that might be invisible, but those that keep modern lives running. Latvian companies provide IT solutions for international banking systems, internet infrastructure and small solutions that keep larger machinery running.
The Capital of Latvia, Riga, is the largest city of the three Baltic States and the second largest city – after Stockholm – in Northern Europe. Riga International Airport is the largest airport in the Baltics and in 2017 it served 6 million passengers. The airport serves almost half (44%) of all Baltic capital passengers and handles 40% of the air cargo market share in the Baltic region.
Latvia is now a full-fledged member of the Organisation for Economic Co-operation and Development (OECD). With its skilled and multilingual labor force, abundant natural resources and strategic location, Latvia is the perfect place to develop business.
Check out the Latvia Business Guide 2018 for more information about human resources, taxation, incentives for investors, and quality of life and recreation.
For a quick glance of Latvia as the best investment destination, see this informative infographic.
Watch six non-Latvians share their exciting experiences of running businesses in Latvia and living there.
*Data and information provided by the Latvian Embassy in Washington.