How Latvia can be your business partner As a thriving democracy, Latvia has consistently pursued liberal economic policies, and it welcomes investments that foster principles and benefits associated with free markets. Along with most other industrialized nations, the global economic crisis of 2008 impacted economic growth in Latvia. As a response, Latvia reduced government expenses, implemented several pro-business reforms and focused policy on being a true partner for investors. The government and private businesses successfully implemented difficult measures that led the country out of the crisis and has laid the groundwork for sustained growth. Latvia thus offers a host of advantages for your business, including access to large markets (500M customers in the developed countries across Europe and 250M customers in emerging markets such as Russia), a skilled and motivated workforce and opportunities for reducing costs. Latvia has a developed and strategic infrastructure, providing all services and security needed to conduct business successfully. Latvia offers - Secure business environment: Open market economy: EU, NATO, WIPO, WTO membership Clearly defined government policy to strengthen the national economy National strategy for investment promotion Polaris process o Coordinated cooperation between public, private and academic sectors o Science and knowledge management o Increased support for promising sectors o Assistance throughout project implementation Active dialogue with the Foreign Investors Council in Latvia Business Friendly Business friendly environment: Latvia ranked 21st in the world for ease of doing business (World Bank Report Doing Business 2012)
With only 7 payments necessary to pay all taxes, Latvia is ranked as No.11 in Tax Payments, out of 183 countries globally (by PricewaterhouseCoopers and the World Bank) Transparent legal and judicial system, lawful treatment of foreign investors (by law, foreign investors have the same rights and duties as local investors) Competitive tax system (CIT 15% - among the lowest in Europe) Government support programs/ incentives for new business development and job creation Four Special Economic Zones*: o Corporate tax discounts (as high as 80%, CIT in the SEZ 3%) o 0% VAT and no customs or excise duties (*) Free Port of Ventspils ranked 5th in the world in terms of its economic potential, cost effectiveness, facilities, transportation, incentives and other parameters according to the Financial Times fdi Magazine's survey 'Global Free Zones of the Future 2010/2011'. Specifically in terms of cost effectiveness, Ventspils ranked 4th in the world, and Rezekne Special Economic Zone ranked 6th in this survey Services provided by LIAA (free of charge; tailor-made to suit clients individual needs; and provided during all stages of clients business projects) Access to Knowledge and Skills: Highly educated and multi-lingual workforce, ready to take on new challenges and well motivated Northern European culture and work ethic Business knowledge and experience with Russia/CIS Country with most foreign languages spoken per capita in EU, according to Eurostat Gateway to EU and Russia/CIS: Europe Union boarder with Russia, making it ideal for east/west trade Three ice-free international ports integrated with well developed transport infrastructure to the East, including a reliable and developed railroad system (used by the US and other NATO countries to deliver non-military supplies directly from ships through Latvian ports to Afghanistan), and transit to eastern countries (regularly scheduled container block trains to Moscow and Kazakhstan)
One of the fastest growing airports in Europe, leading air transportation hub in the region with more than 80 direct connections providing convenient accessibility for business and leisure travel Highly developed communications infrastructure: o Latvia ranks 4th globally by download speed 26.35 Mb/s and upload speed 16.38 Mb/s (by The Global Broadband Speed Test) o Latvia ranks 4th globally by average measured internet connection speed: 8.9 Mb/s (by State of the Internet report by Akamai, Q3, 2011) Cost Effective: Riga, capital of Latvia ranked as the Best Large European City for Cost Effectiveness by FDI Magazine European Cities and Regions of the Future 2010/11. Three other cities in Latvia ranked in the top 3 for Micro European City for Cost Effectiveness Competitive labor costs, relatively low in comparison with the US and Western Europe Competitive real estate costs and taxes High productivity - Latvia is a leader among other EU countries with regard to wage adjusted labor productivity (highest value for each wage dollar) Stable, single currency planned accession to Euro Zone in 2014 Quality of life: Apart from being the capital of Latvia and the largest city in the three Baltic States, Riga is also Europe s capital of art nouveau architecture and one of the greenest cities in the region Historic Center of Riga is included in the UNESCO World Heritage List Riga will be one of two European Capitals of Culture in 2014 World class Opera house, theatres, thriving natural beauty and ecotourism Latvia has all conveniences that business people and families need, including services and amenities (international schools and universities, modern and accessible medical care)
For more information about the strengths of different sectors and industries in Latvia, please see www.polarisprocess.com. Testimonials of U.S. companies operating in Latvia CYTEC Global specialty chemicals, HQ in NJ, USA Our experience in setting up the Shared Services Center to service Cytec locations in Europe and North America has been a very good one. We made the decision to locate our office in Riga in December 2009, we started recruiting the first wave of employees in May 2010 and we are currently fully staffed with approximately 140 employees. Our Shared Services Center provides services to Cytec entities in the areas of Finance, Human Resources, IT and Procurement. Our decision to choose Latvia was primarily based on the availability of a good pool of talent (university educated, multi-lingual), a good economic business case, and fairly easy access from European cities and from the US into the Riga Airport. Also, the availability of the European Structural Fund to support training of our new staff has made it easier to make the operation economically attractive... Overall we are very pleased with the employees we have been able to attract and train, and also with the office facility and operation we have established. GroGlass (NCH Capital, Inc.) High-technology glass manufacturing NCH HQ in NY, USA NCH has been investing in Latvia for almost two decades and our decision to build this high-tech manufacturing facility was a natural extension of our existing portfolio. Our experience building GroGlass further reinforced our positive long term view on Latvia as a fertile soil for increasing the value of our investments. We were able to attract and train a highly specialized worker base, and we have received tremendous support from LIAA to start our business. The government has been receptive to our requests for improving the taxation environment, in particular extending the tax loss carry forward period. Overall, we feel the advantage of being a European supplier, yet enjoying the benefits of operating a manufacturing facility in a developing country.
Jeld-Wen, Inc. Window/door manufacturing HQ in OR, USA The expectations of our founders mainly have been accomplished. The expected benefits were availability of local raw materials, relatively cheap but skilled and hardworking employees, production accessibility of infrastructure and low income tax rate. EXIGEN services Software / IT HQ in CA, USA Came for cost, stayed for quality! - The benefits we had as an investor in a high technology sector were finding an extremely high level resource pool which is experienced with both technology and customer management, while still relatively less expensive then either European or US-based software developers. Also, the fact the Latvian infrastructure is very modern is a significant factor, since travel, hospitality, and communications are key in order to use the Latvian technical resources effectively. Finally, the fact that Latvia is an EU country and enjoys all the benefits of a European business environment, while still being a "near-shore" location which is economical to outsource is a significant factor for some of our customers, particularly in finance sector. Source: LIAA Investment and Development Agency of Latvia 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.
LIAA Investment and Development Agency of Latvia 2 Perses Street, Riga, Latvia LV-1442 Tel: +371 67039400 Fax: +371 67039401 E-mail: liaa@liaa.gov.lv www.liaa.gov.lv U.S. 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 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 Latvia Export Import Directory www.exim.lv