Latvia is a land of opportunities for investors these days because the Government has introduced its support programs. These programs are designed for the encouragement of foreign investment.
To speed up privatization and encourage foreign investors, the Latvian Government has introduced several provisions to the business law of the country.
Foreign investors can take control of the companies building natural resources. Due to the government support and business-friendly legislature, Latvia is the right place to establish a new business as per the geographical and transportation facilities. Some other reasons are here. You will come to know how to set up your business in Latvia.
FDI- Foreign Direct investment in Latvia
Regarding the business environment, Latvia is in 19th position out of the one hundred and ninety countries. The simplicity of the tax payment and ease to start a business as well as import and export procedures make the country at the position of top twenty. Latvia has the advantage of containing a suitable geographical location and inexpensive workforce. Between CIS and EU countries.
However, the Latvia market is small, but it offers protection on resoling insolvency to minority shareholders. The country offers overall high productivity, inexpensive and skilled labor, healthy public accounts, political stability, a competitive business environment with an attractive and simple tax system, and many more.
Latvia offers plenty of business incentives for investors. Not only tax reduction, but there are also many other favorable business laws for the support of the new investors. To promote business development, tax incentives include large investment tax deduction, Tax reduction for development and research, deferred tax payments, donations relief, and special economic zones.
Not only this, but labor-related incentives are also highly favorable for foreign investors since the country offers inexpensive and skilled workforce. Government legislature is highly suitable for the foreigners to invest in the country and enjoy the business loan and other financial support facilities.
Incentives for R&D
If you are going to invest in Latvia, then this is the right decision because the business conditions and laws are favorable for the foreign investors here. The government has introduced several incentives for R&D.
There is a large range of funding opportunities for funding here for research and innovation activities. All the Medium and small-sized enterprises, individual researchers, non-government organizations, government organizations, research centers, and universities are the beneficiaries of the programs. There are many other R & D incentives for the new investors here.
As per the flexible business laws for foreigners, some financial support programs have been introduced for project promoters. No doubt, this financial support for SEMs is great to give them a new stand in the country.
It helps to build a pipeline of quality projects in Europe. Some financial institutes and organizations, banks, and others offer loans and provide solid support to investors and promoters. The European Investment Advisory hub offers tailored advisory favor to build a quality projects pipeline in Europe.
The government has made Europe’s investment environment barrier-free and more business-friendly with the EaSI support program.
The aim of this program is to offer additional support to all business investors that are in the development phase or in the initial stage. In this way, they can get financial support with low-interest unsecured loans. Taking part in this program is free for all companies.
The purpose behind these guarantees to offer access to all financial resources to investors or business owners for the development of business by attaining loans. This is a favorable situation for the majority of the investors who need support financially for their business.
Setting up a business in Latvia is a wise decision because the country offers several favorable conditions for investment. Latvia is still a place business establishment. Therefore, the commercial capital of the UAE enjoys investors swarm every year.
Besides the infrastructural benefits, the lighter tax burden is solid support for the business owners. All these facilities are not available in other countries in Europe.
This is the reason the country does not put several restrictions on issuing loans for business investors. Latvia offers plenty of business opportunities for foreigners to come to the country and invest in different fields like engineering, consulting, education, e-commerce, real estate, and others.