Doing Business in Latvia
The Latvian economy from 2000-2007 was one of the fastest
expanding in the European Union, with growth annually averaging almost 8.0%. In
2008-09 the economy slowed very sharply as the pace of world economic growth collapsed, the domestic proprty price bubble deflated, and credit markets around the globe seized up.
In 2010, this sharp recession came to an end and a modest recovery is now underway. An important
driver has been reduced costs and improved competiveness. The excesses of the “bubble-economy”
years have been removed from the system and Latvia is now on a better footing
to regain steady growth and renewed improving living standards. As a place to
do business, it is now much more competitive in many ways than 5 years ago. If
sensible economic and fiscal policies are maintained in Latvia and the world
economy continues to improve, then Latvia’s business prospects will be much
brighter in the next 12-18 months.Latvia is targetting on converting it currency to the Euro in 2014, am achievanle target if current fiscal and monetary guidelines are adherered to.
LIAA - One-Stop-Shop for Foreign Investors
and Buyers interested in Latvia
The Investment and Development Agency of Latvia (LIAA) is a state institution reporting to the Ministry of Economy. LIAA offers assistance throughout the process of setting up operations in Latvia, acting as a first point of contact and as a 'one-stop-shop' in assisting investors and in developing tailored solutions to meet their specific needs. The Agency has its own regularly updated database of Latvian enterprises to facilitate partner searches for investment projects and for exporting or subcontracting businesses.
Latvian Investment and Development Agency
US enquiries: please call or email:
Aija Jaunzeme
Tel: +371 67039408 aija.jaunzeme@liaa.gov.lv
Andra Minkeviča
Tel: +371 67039466 andra.minkevica@liaa.gov.lv
or visit: www.liaa.gov.lv
New 5 year temporary residence permit for qualified investors
The Parliament of the Republic of Latvia in 2010 passed
amendments to the Law on Immigration providing additional possibilities of
obtaining a temporary residence permit (TRP) in the Republic of Latvia. The new
laws took effect as of July 1st, 2010.
To be eligible for this new TRP, an investor must fulfill the
following criteria:
Invest at least LVL 25,000 (EUR 36,000) in a capital of a
Latvian enterprise and pay taxes as a result of business activities in Latvia
in the minimum amount of LVL 20,000 (EUR 28,000) a year.
The investor must have set up a qualifying business after
July 1, 2010.
Having fulfilled the above criteria an investor may apply
for the residence permit valid for the period of 5 years. A TRP will be available both for investors and
their family members – spouses, underage children and persons that are under
the surveillance/official care of such investors. Upon expiry of the term of
residence permit investors and their family members are eligible to apply for
the renewal.
The TRP of the Republic of Latvia automatically guarantees
free movement of persons within the Schengen area, currently consisting of 25
European countries. Visa is still required for travelling to the United Kingdom
and Ireland which are outside the Schengen area, as well as to Romania, Cyprus
and Bulgaria, which have not yet joined the mentioned area.
For further details about the new TRP, please see the
websites of leading banks, law firms and accounting office in Latvia who are
now providing advice on these matters to interested investors.
For other business related information on Latvia, please see the following useful links:
Central Bank of Latvia
www.bank.lv
Ministry of Economics
www.em.gov.lv
Ministry of Finance
www.fm.gov.lv
The American Chamber of Commerce in Latvia
www.amcham.lv
The Commercial Section of the US Embassy in Latvia
www.buyusa.gov/baltics/en
The Register of Enterprises of the Republic of Latvia
www.ur.gov.lv
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