Safe and prosperous economic environment
Latvia is a prosperous, dynamic and open economy. Latvia is a member of international economic, trade and security organisations– EU, NATO, WRO and OECD. The Latvian economy is primarily based on service industries, including transportation, information technology, and financial services. The World Bank has long recognised the Latvian business environment as it has been consistently ranked among the top ten economies in the EU for ease of doing business and 19th out of 190 economies in the latest “Doing Business” report.
Key location for freight and logistics
Thanks to its geographical location at the crossroads between the main Eurasian markets, Latvia is one of the most convenient and practical hubs for transporting goods from Asia to Europe and vice versa. Latvia is ranked amongst the top 50 countries in the Global Logistical Ranking and. Due to Latvia’s favourable location between the EU and the large markets to the East, the transport and logistics industry has been one of the most critical sectors in the country as it has contributed to the national GDP by roughly 10% in previous years.
Competitive tax policy
Latvia offers a competitive business environment with a simple and attractive tax system and a low level of taxation. In 2021, Estonia and Latvia were ranked 1st and 2nd among OECD countries in the International Tax Competitiveness Index, which measures a country's tax policy based on competitiveness and neutrality.
Skilled and educated workforce
Latvia offers a highly educated, multilingual workforce powered by a corporate culture promoting hard work, reliability and success. The Latvian labour force has one of the world's highest university attendance rates - the gross enrolment ratio for tertiary education is 81%. Yet, Latvia’s labour costs are very competitive, especially compared to those in Western EU-member countries - Latvia has the 5th lowest labour costs per hour in the EU.
Real estate market potential
There is a high demand for new energy-efficient A-class offices as occupiers are searching for ways to optimise their offices and react to remote and hybrid working trends. However, the demand is not met, as the introduction of new projects is slower than the rise in demand for premium office spaces.
Incentives for investors
Latvia offers a wide selection of incentives for investors. These include support via the EU Structural Funds, attractive tax rebates for businesses, and EU membership privileges, such as free movement of goods and services, access to capital and labour markets, and the advantages of the Eurozone.