New Opportunities for Foreign Investors in Latgale

New-Opportunities-for-Foreign-Investors-in-Latgale-LatviaThe Latvian Environmental Protection and Regional Development Ministry approved the plan for the development of the eastern Latgale province in the country. Latvian companies will benefit from investment incentives worth approximately 52 million euros. The Environmental Protection and Regional Development Ministry also declared about 800 new jobs will be created.

What is the development plan for the Latgale province?

The announcement was made last month, when the Government approved private investment worth 52.18 million euros and declared the new project will lead to the creation of 818 new jobs for Latvian workers. The Plan of Action for the Development of Latgale, as it was called, will spread out between 2015 and 2017 and most of the financing will come from the European Regional Development Fund (ERDF). This entity is expected to provide 52.24 million euros for the revitalization of degraded land.

Considering the drastic population decrease registered in the Latgale region during 2000 and 2014, the Regional Development Ministry declared special measures for enhancing the economy are imperative. The Ministry also declared the main focus will be on creating conditions for the establishment of new companies and the development of Latvian companies already carrying out businesses in the Latgale region. The ministry is very optimistic that, by improving the business environment, will attract foreign investors in the Latgale region, thus creating more jobs.

ERDF finances the Latgale region in Latvia

The 52.24 million euros received from European Regional Development Fund will be divided among the local governments as it follows: 17.35 million euros will be distributed among Daugavpils and Rezekne, 11.89 million euros will be directed towards the Balvi, Kraslava, Livani, Ludza, Preili and Aluksne regions and 23 million euros will be delivered to all the other regions in Latgale. The local governments and Latvian companies in the region will also have the opportunity to apply for the Growth and Employment program carried out by the European Union.

The Plan of Action for the Development of Latgale also contains other measures, such as tax incentives and the expansion of the Rezekne Special Economic Zone. For details about available tax incentives for companies in the Latgale region, please contact our law firm in Latvia.