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Latvia, officially known as the Republic of Latvia is a country located in the historically significant Baltic region on the Northern part of Europe. The country is a landlocked country, it is bordered by Estonia in the north and on the southeast Latvia shares its border with Belarus, on the east lies the Russian Federation and on the west it shares its border with Sweden along the coast of Baltic Sea. Latvia being located on the eastern sides of the European plain it has a very pleasant climate and also boasts of fertile soil which is suitable for growing a large variety of crops. Latvia also has a big forest cover that is home to some of the most exotic plants an animal species.
Population: 1.997 million (2015)
Official languages: Latvia
Other spoken languages: Russia (34%)
Currency: Euro (€)
Country code: +371
Time zone: UTC +2, Daylight saving time UTC +3
GDP (PPP): $42.471 billion (2014)
GDP (PPP)/per capita: $25.195 (2014)
Public debt: 35% GDP
Employment to population ratio: Unemployed 9.1%, 0.88 citizens between 15-65 years of age (2014)
Average salary: 820€/ month
Major trading partners: Russia, Lithuania, Estonia, Germany, Poland, Sweden
Advantages
Disadvantages
Novasigma has published an annual BFEE (Business Friendliness Environment – Europe) -index for 2017. European economies are ranked from 1-51 based on their business friendliness. The rankings are determined by sorting the aggregate distance to frontier scores on 20 topics each consisting of several indicators, giving equal weight to each topic. The rankings for all countries and economies are bench-marked to January 2017
LATVIA – OVERALL RANK 2017: 9th (Europe) | 53/100 points |
1. Ease of incorporation process (bureaucracy, costs, time frame) | 2/5 points |
2. Privacy level of shareholders and investors | 2/5 points |
3. Privacy level of company directors and signatories | 1/5 points |
4. Availability of the private equity funding | 2/5 points |
5. Availability of the public and / or bank sector financing instruments | 2/5 points |
6. Reputation of the country (trading across borders with a company registered in this country) | 2/5 points |
7. Easiness of recruiting professional staff (professionalism, average pay, protection against dismissal) | 3/5 points |
8. Easiness of getting business premises (price, availability) | 4/5 points |
9. Suitability for production of physical products | 3/5 points |
10. Suitability for producing services | 3/5 points |
11. Size of the home market B2C (population and purchasing power) | 1/5 points |
12. Size of the home market B2B and public sector purchasing services from local businesses | 2/5 points |
13. Exporting physical products (markets nearby, logistics and toll) | 3/5 points |
14. Exporting services | 4/5 points |
15. Immaterial rights (compared to other countries) | 4/5 points |
16. The level bureaucracy or corruption during business operations | 5/5 points |
17. Company taxation | 4/5 points |
18. Dividend taxation, withholding taxes and tax treaties | 2/5 points |
19. Easiness of selling a business | 2/5 points |
20. Easiness of closing down a company | 2/5 points |
Overall rank: | rank 23 (-2 since 2014) |
- Starting a business: | rank 36 (Average processing time 12.5 days) |
- Dealing with construction permits: | rank 47 (Average processing time 149 days) |
- Getting electricity: | rank 89 (Average installation time 108 days) |
- Registering property: | rank 32 (Average registration time 18 days) |
- Getting credit: | rank 23 |
- Protecting minority investors: | rank 49 |
- Paying taxes: | rank 24 (Average company tax from profits 35%, Average time used for taxation 193 hours / year) |
- Trading across borders: | rank 28 (Average export cost / container: $600, Average processing time 10 days. Average import cost / container: $801, average processing time 11 days) |
- Enforcing contracts: | rank16 (Average 469 days, average cost from standing amount 23.1%) |
- Resolving insolvency: | rank40 (Average time processing bankcruptcy: 1.5 years) |
New businesses registered in v. 2012: 15.760
Who can start business in Latvia:
Who can own property or shares of Latvian company
Who can act as a director or member of the board:
Business entities in Latvia:
Requirements to incorporate in Latvia
Opening bank account:
Public register of shareholders and directors:
Allowed trades:
Accounting and reporting regulations:
How funds can be withdrawn from company
Ca you transfer Latvian company to another jurisdiction:
How to terminate business:
Overall rank: | 32 (64/100 points) |
- Property: | 50/100 points |
- taxes: | 85/100 points |
- Speech: | 94/100 points |
- Government: | 55/100 points |
- Guns: | 45/100 points |
- Drugs: | 30/100 points |
- Corruption: | 53/100 points |
- Inflation: | 80/100 points |
- Business: | 83/100 points |
Taxable income | 15% |
Taxation of dividents | 4.89% |
VAT registration | When yearly overturn exceeds EUR 50.000 |
VAT rates | 21% / 12% / 0% |
Tax at source | 0% (EU- ad tax treaties / 10% Outside EU) |
- Dissidents | 0% |
- Royalties | 0-10% |
- Interest | 0-10% |
- Technical services | 0-10% |
Transfer tax | 0% |
Capital gains tax | Treated as normal income |
Real property tax | 0.1% - 2% |
Social security | 33% |
Capital duty | 0% |
Stamp duty | 0% |
Tax treaties | Over 57 countries |
National income tax | 23% |
Social security;;30.58% (Employers pays 10.5%) | |
VAT | 21%/125%/0% |
Capital income tax | 10% |
Capital gains | 15% |
Net wealth / Net worth tax: | 0% |
Real property tax | 0.2% - 3% |
Inheritance tax | 0% |
Transfer tax | 0% |
Vehicle tax | 0% |
Services for corporations interested in Latvia
For corporations operating in Latvia
For individuals and families interested in Latvia
For individuals and families who hold the Latvian residency
In cases KYC or/and Due Diligence process required Novasigma requires a personal meeting with all its new clients before proceeding any assignment
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