Safe and prosperous economic environment
Latvia is a prosperous, dynamic, and open economy. Since entering the European Union, Latvia’s economy has experienced one of the highest GDP growth rates in Europe. Latvia is also among a group of only 20 nations worldwide that are members of all major international organisations, including EU, NATO, WTO and OECD. Latvia’s economy is primarily powered by strong performance in manufacturing, trade, and real estate activities, while ICT and business services are rapidly expanding and attracting international investors.
Key location for freight and logistics
Thanks to its strategic location in Northern Europe and its close integration into the EU transport networks, Latvia is a key logistics hub in the Baltic Sea region. The country offers a well‑developed and diverse logistics infrastructure, which includes modern seaport terminals, an efficient railway and road network, as well as international air‑cargo connectivity.
The transport and logistics sector remains one of the cornerstones of Latvia’s economy, making a substantial contribution to national growth and supporting the expansion of exports, e‑commerce, and industrial development. Digitalised processes, sustainable solutions, and integration into Northern European supply chains make Latvia a competitive, reliable and forward‑looking logistics centre in modern Europe.
Competitive tax policy
Latvia offers a competitive business environment with a simple and attractive tax system and a low level of taxation. In 2025, Latvia was ranked #2 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
The Latvian workforce is highly educated, multi-lingual and highly motivated. Latvians take pride in having a strong work ethics that are integral to Northern European culture. The Latvian labour force has one of the world's highest university attendance rates, with a tertiary education enrolment ratio of 88.5% At the same time, Latvia offers excellent value-for-money: investors gain access to EU-standard talent and a business-ready workforce at a cost base that remains among the most competitive in the European Union.
Incentives for investors
Latvia presents a wide selection of incentives for investors. These benefits encompass support through the EU Structural Funds, appealing tax rebates for businesses, fast-track initiatives for public services in the priority project areas, and the advantages associated with EU membership. Investors can enjoy the free movement of goods and services, access to capital and labor markets, as well as the economic benefits of the Eurozone.
Scalable setup for business operations
Latvia presents significant opportunities for development and manufacturing, offering companies infrastructure‑ready industrial sites equipped with access roads, external utility networks, and appropriate industrial zoning. Furthermore, Latvia has several Special Economic Zones (SEZ) offering various benefits for establishing production in these sites, including tax benefits, efficient logistics, robust infrastructure, utilities, and support services. Together, these factors foster an environment where investors can operate cost-effectively, scale production seamlessly, and easily connect to both regional and global markets.