Investment in latvia

Political and legal stability

• Latvia is a democratic republic that abides by the rule of law. It is fully integrated into the European Union, applying EU laws and regulations within its legal system. Indicators of Latvia’s political stability include:
• Lawful treatment of foreign investors:By law, investors from other countries have the same rights and duties as local investors. Any foreign investor may be sole founder and owner of a company. International companies registered in Latvia are entitled to buy land and property. Foreign investors (as individual persons) can be provided temporary residence permits.
• NATO: Latvia is a full and active member in the North Atlantic Treaty Organization, providing an effective structure of political cooperation and military security.
• IP protection: Latvia has all the same intellectual property (IP) rights and protection demands applicable as any other EU member state. Latvia is not on the Special 301 Report, indicating that Latvia provides effective protection of IP rights as assessed by the Office of the United States Trade Representative.
• Schengen: Latvia is a member of the Schengen zone, which allows passport-free travel across most of Europe.

Definition gistogramm

• After Latvia’s accession to the EU, the inflow of FDI increased rapidly and in 2018 reached its highest point (EUR 15.2 billion). The main factors fostering FDI inflow were new market opportunities for foreign investors, stable monetary policy, Latvia’s advantageous geographic location between the EU and CIS countries, and its well-developed infrastructure. After being severely affected by the global financial crisis, Latvia implemented extensive austerity measures. As a result, Latvia’s economy, the confidence of foreign investors, and FDI inflows are on the rise again.

FDI in Latvia by country of origin at the end of 2018

• Historically, most of Latvia’s FDI inflow has come from neighbouring countries in the Baltic Sea region and other EU member states. The largest amounts of investment in 2018 were from Sweden – 18 % of the total FDI stock at Latvia’s economy. In 2018, FDI from the EU states represented 76% of all accrued FDI.
• However, Latvia’s FDI inflows cover a wide range of economic sectors, the largest share of FDI stock is attributable to services. FDI split by sectors shows that most investment is attracted by financial intermediation (24%). Others of the largest foreign investments have been accumulated in trade (16%), real estate operations (15.3%) and manufacturing (11.7%).
• Many international companies have established operations in Latvia, including such globally recognized names as Coca-Cola, Bucher Schoerling, Schneider Electric, Tieto, Cytec, JELD-WEN, Circle K Latvia, Generex Biotechnology, Cemex, Brabantia, and others have chosen to benefit from Latvia’s competitive advantages.