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 0% corporate income tax rate on retained profit 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?

Company Formation 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.

    20 reasons why establish company in Latvia

    • Strategic location: Latvia is located in the heart of the Baltic region, making it a strategic location for businesses that want to enter the European market.
    • Access to the European Union: Latvia is a member of the European Union, providing businesses with access to the largest single market in the world.
    • Favorable tax environment: Latvia has a low corporate tax rate of 20%, making it an attractive location for businesses looking to minimize their tax burden.
    • Competitive labor costs: The cost of labor in Latvia is relatively low compared to other European countries, making it an attractive location for businesses looking to reduce their operational costs.
    • Highly educated workforce: Latvia has a well-educated and skilled workforce, with a high level of proficiency in languages such as English and Russian.
    • Ease of doing business: Latvia is ranked as one of the easiest places in Europe to do business, according to the World Bank’s Ease of Doing Business report.
    • Pro-business government policies: The Latvian government has implemented a number of pro-business policies to encourage foreign investment and business growth.
    • Strong legal system: Latvia has a strong legal system that protects the rights of businesses and provides a stable business environment.
    • Modern infrastructure: Latvia has modern infrastructure, including a well-developed road network, modern ports, and an efficient public transportation system.
    • Good telecommunications infrastructure: Latvia has a high-speed broadband network, making it easy for businesses to stay connected and operate efficiently.
    • Excellent logistics: Latvia is known for its excellent logistics infrastructure, with easy access to major European markets.
    • Rich cultural heritage: Latvia has a rich cultural heritage, which can provide a unique and attractive environment for businesses looking to establish a presence in Europe.
    • High quality of life: Latvia is known for its high quality of life, with affordable housing, good healthcare, and a range of recreational activities.
    • Access to a talented workforce: Latvia has a strong education system, producing a steady stream of talented graduates in a variety of fields.
    • Growing startup ecosystem: Latvia has a growing startup ecosystem, with a number of incubators, accelerators, and venture capital firms supporting entrepreneurship.
    • Strong support for innovation: Latvia has a strong focus on innovation, with a number of government programs supporting research and development.
    • Access to a variety of industries: Latvia has a diverse economy, with a range of industries including manufacturing, IT, logistics, and finance.
    • Good trade relations: Latvia has good trade relations with other European countries, as well as with Russia and other countries in the region.
    • Low cost of living: Latvia has a low cost of living compared to other European countries, making it an attractive location for businesses looking to reduce their overheads.
    • Excellent quality of education: Latvia has a highly regarded education system, providing businesses with access to a skilled and knowledgeable workforce.