Latvia

Why trade or invest in Latvia?

Latvia's commitment to global cooperation is reflected in its membership of the WTO, World Bank, IMF,WHO and other international bodies. Latvia has actively participated in NATO.

Latvia is one of the fastest growing economies in the European Union (EU).  Latvia has one of the lowest tax burdens in Europe: corporate tax rate at a flat 15% and individual taxes at 25%.

Benefits for the businesses exporting to Latvia include:

• strategic location
• ideal starter market
• open economy
• sophisticated consumer market
• English widely used as business language
• business incentives and EU funding available

Strengths of the Latvian market include:

• strong economy
• ease of doing business   
• skilled workforce
• cost effective
• strong transport links and logistics base

Latvia’s economy continues to improve. Although growth has slowed it’s still one of the fastest-growing within the EU and Eurozone.  Joining the Eurozone didn’t impact prices. Inflation remains stable at around 0%.  Domestic demand will play a major role in Latvia’s economic growth. Latvia’s export opportunities are also expected to improve.

Latvia’s economy focuses on:

• transportation
• logistics
• food and drink
• materials
• information communications technology (ICT)

Latvia is a member of the EU and the World Trade Organization (WTO).  Latvia is located at the crossroads of northern and eastern Europe. It’s at the centre of the developing Baltic States market.

Transport infrastructure development has always been one of the highest priorities for Latvia. Continued investment in sea port development is required.  There will be increased attention in coming years towards the railways. The ‘Rail Baltica’ project is a huge development linking Finland to the Baltic States and Poland.  The Latvian energy sector is one of the ‘greenest’ in Europe.

Some particularities of the Latvian legal system you should know

It is largely civil, as opposed to a common, law system, based on epitomes in the German and French systems.

In 2001, the Parliament of Latvia adopted Commercial Law that is based on the German legal system, however, a number of EU directives have also been introduced by this legal act. Prior to this law, the commercial activities, as well as procedure of organizing companies was regulated by several laws adopted at the beginning of the 1990s.

The Commercial Law has invented quite many and so far unknown concepts, e.g., commercial entrepreneur, procura (commercial power of attorney).   The bankruptcy procedure in Latvia is guided by the Law on the Insolvency of Undertakings and Companies  (adopted on 12 September 1996).  Insolvency of a company is established by a court judgement. A company is insolvent if it is not able to fulfill its obligations to its creditors.

The law does not apply to the insolvency of credit institutions. There is a special procedure for these institutions. In regard to insurance companies, this law is applicable as far as it does not conflict with the special laws on insurance activities.

Whom we work for

A-LAW Latvia desk has been providing legal support to clients in different areas, such as real estate issues, corporate and civil (family) law, traffic law, migration law, liability law and debts recovery (bankruptcy, administrative fines).

An in-depth approach of the different legal aspects of cross border cooperation and trade, commercial agency, distribution and franchising of a wide variety of products exported from or imported into Latvia have been assessed through A-Law dedicated team.