The Republic of Latvia is one of the European Union key players. After a severe economic crisis in the late 2000s, it has become a remarkable focus of world investments, and the number of investors and potential investors is increasing considerably because of the advantageous investment policy of this Baltic country. Latvia is experiencing an important economic sustained growth as a consequence of a good flexibility and adaptation capacity to European guidelines. This growth has generated high investment levels that have set Latvia at the top of the new Eurozone countries in terms of development. Let’s mention the most important reasons that will make you invest in Latvia, if you are looking for a place to invest and open new markets.
High profitability of real estate investments.
This business is in continuous growing and development. Actually, Latvia is one of the most attractive countries of Eastern Europe because of its economic development potential. The low price of housing and land, and, in addition, the high real estate profitability promote the increase of interested buyers for investing in this country. Though there are certain and reasonable limits, real estate investment in Latvia is one of the most open of the new members of the EU.
In terms of legislation, Latvia is really friendly to foreign investment.
Since the country became independent in 1991, reinvested earning and foreign direct investment have grown quickly. After the financial crisis of 2008, the rates suffered a sharp fall, but they recovered during the first half of 2011. One of the changes that made it possible was the expedition of the Law on Immigration: it allows foreign investors to get permission of temporary residence in Latvian territory, and, in fact, it made it easier for several corporations to invest so far. In 2011, the foreign direct investment volume increased by 300%.
When it comes to large projects, the government of Latvia offers generous incentives to foreign investors. The first one is a corporate tax allowance of forty percent during ten years, provided by the government in the following areas: equipment, real estate and technology. The second one, in order to establish new business in the country, consists of an administrative and organizational support to businessmen and corporations. Furthermore, the government offers complete grants for infrastructure development and laborer training.
One of the consequences of Latvia’s weighty economic growth in the course of this decade is the exponential rise of the industrial sector. The country’s Gross Domestic Product has increased because of investment on this sector, and now Latvia has been considered one of the best economies in the Eurozone. The Baltic country has a considerable industrial sector, popular for its excellent manufacturing wing. Many investors seem interested in developing this area in several possibilities. The most important of them are food processing, textiles, wood processing, mining products and machinery.
Stable bureaucratic set up.
For foreign investors, a stable bureaucratic set up is not just useful when they are looking for a place to establish their business. It’s very important as there is so much money involved. Latvia has a satisfactorily stable one, and it means a tremendous benefit for investing without any procedural obstacles.
According to the standards of other Eurozone countries, Latvian work culture is world class. This nation has a very global corporate outlook and it’s famous for the importance that locals give to work as a matter of tradition.
Regardless of many tourists that are actually unable to point Latvia in a map, this country is becoming an important touristic destination worldwide.
Scandinavians, Baltics, Russians and Central Europeans are the most frequent visitors, but many travel plans for visiting Latvia and its neighbors Estonia and Lithuania have been offered in Asia and America with a very good response.
Offers of five years of renewable visas for foreign investors who buy properties in Latvia.
The condition is buying EUR 70.000 properties inside the country and EUR 140.000 properties in the main cities downtown.
Notorious financial system.
Because of the short period transit of a centralized to a market economy, supported by a large bank progression, Latvia’s financial system has improved in order to promote foreign investment.
Gross Domestic Product.
Without any doubt, it’s a good sign for any investor that a country that experienced a fall of 24% in its GDP in 2009, reached a favorable peak of US$48 billion in 2014. In 2011, this economy grew by 5.5% and 5.6% in the next year. In 2015, the GDP per capita was US$13,729, and it has been growing still fast, even though the economy decreased in the last three months of 2015.