Why to establish a company in Latvia:


Doing business in the EU

Company formation in Latvia creates an opportunity to trade with both European companies and the companies in the Eastern markets. Latvia as the European Union member country provides Latvian companies access to the European Union markets.

Building of an effective holding structure of assets

Latvia has already been selected by a number of multinationals groups as a location for their shared service centers (finance, IT, back-office functions) due to certain non-tax attributes.

Tax optimization

The main advantage of a company establishment in Latvia is a relatively low corporate income tax rate (15%) which makes Latvia attractive country for business.

Visa-free travels

Due to the amendments in the immigration law, procedure and possibilities for obtaining a residence permit for European investors has become much easier.

Advantages of the banking system

Latvian banking system is relatively advanced and stable. All of the banks are operating based on the European system and banking legislation complies with the EU legislation.

Controlled foreign corporations (CFC)

Considering the fact that Latvia has a relatively low corporate income tax rate, Latvian company could be as an important part of CFC structure.

For what purposes you can use a company in Latvia?


Holding company

Latvian holding company regime is attractive since it has participation exemption and does not impose any restrictions for ownership of shares in the operating companies.


Trading company

Latvian companies are used for the purpose of trading within EU and countries of CIS. Furthermore, the geographical position of Latvia and transport capabilities allow to use the Latvian companies as a hub for trading between the East and West.


Contract manufacturer

Very often foreign groups establish in Latvia entities for the purpose of contract or toll manufacturing. The reason for this is motivated workforce, low costs and favorable tax regime for manufacturing entities.