Foreign Investments in Latvia
Foreign Investments in LatviaUpdated on Friday 21st August 2015
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Latvia is a small country that plays an important role in the European Union as it has become a major destination for foreign investors. The Latvian government has implemented encouraging investment policies and created the Investment and Development Agency (LIAA) in order to support foreign investors wanting to open companies in Latvia.
The Investment and Development Agency in Latvia
The Latvian Investment and Development Agency was created in 1993 and reorganized in 2004 and it falls under the authority of the Ministry of Economics. LIAA is in charge with the promotion of business development sector in the country providing foreign investments facilities.
The Agency is also in charge with receiving and distributing the EU Structural Funds that are meant to increase the number of new registered companies in Latvia. LIAA attracts foreign investors by encouraging foreign trade activities and by implementing programs for exports. The Investment and Development Agency provides assistance to foreign investors by presenting them with the existent business opportunities and by helping them to contact Latvian companies that could partner with.
Incentives for foreign investments in Latvia
Foreign investors benefit from advantageous conditions for setting up new companies in Latvia. Among these, we can enumerate:
- - taxation incentives that are comprised of special economic areas, refunds on the corporate tax and a special regime for holding companies,
- - employment incentives for foreign investors creating new job opportunities, trainings provided by the State Employment Agency, at the employers' requests, and the Agency’s database for finding suitable labor force,
- - incentives for research and development through special programs, such as EU Seventh Framework Program and EUREKA,
- - soft loans granted by the Latvian government
Investment sectors in Latvia
Foreign investors have the opportunity to open companies in the industrial sector as Latvia’s economy is based on manufacturing products, but also in areas like wood processing, food industry, textiles and machinery.
Also transport companies can find it easy to set up, as Latvia is the perfect passage way to other countries in Europe and its geographical position provides openness to the Russian market, as well.