One of the finest possibilities for people looking to invest abroad is Latvia. This scenario primarily exists because it directly benefits investors and provides them with a variety of options. These possibilities offered by Latvia now significantly contribute to the Baltic nations’ status as a key hub for foreign investment. Investors are known to prefer industries like manufacturing, health care, energy, logistics, and many more related fields.
Why invest in Latvia
The following are only a few of the numerous benefits of investing in Latvia:
Access to huge markets
Latvia offers a strategic location for corporate activities aimed toward the mature economies of the EU and rising markets in its eastern neighbors. Latvia may also be proud of its distinctive physical and cultural position. Latvia equally serves as a natural crossing point between Scandinavia, the EU, and Asia.
Modern transportation infrastructure
Riga, Liepaja, and Ventspils are the three main ice-free international ports in Latvia, which are situated on the Baltic Sea coast. These ports are connected to the nation’s large rail, road, and pipeline network. The biggest airport in the Baltics, Riga International Airport, handled 2.35 million passengers and 27 831 tonnes of cargo in 2021, which is a record for a single airport in the region. Currently, 11 airlines use the airport, including the national carrier of Latvia, airBaltic, as well as budget airlines Ryanair, Wizzair, and Norwegian as well as major European carriers Lufthansa, Turkish Airlines, and Finnair. Fast and dependable direct flights from Riga International Airport to around 80 locations in the winter and about 100 destinations in the summer are provided by the aforementioned businesses as well as others. The North Pier for the terminal at Riga International Airport, which was completed in 2016, will allow the airport to maintain its existing expansion and boost passenger handling capacity.
The foreign trade and customs policies of Latvia are based on free trade principles. As a member of the European Union, Schengen, and the World Commerce Organization, Latvia benefits from free and open trade on all global markets. To facilitate successful planning and cooperation with trading partners throughout the globe, customs and border processes have been standardized. Additionally, Latvia has joined the OECD as a full member.
Expertise with exports
Local businesses are working to expand their exports, which is fostering a knowledge- and skill-based environment that enables enterprises to expand both domestically and internationally. The history of Latvia has equipped its workforce with the economic acumen and cultural standards necessary for relationships with Western European nations. Numerous services are offered by LIAA to help locally registered businesses expand into other markets.
The lack of skilled labor is the biggest issue investors in other nations confront. Investors do not like nations that, although having numerous advantages, cannot provide skilled workers. On the other side, Latvia surpasses investors’ expectations in this area. There are no issues with competent labor in Latvia. There, multilingual, highly educated individuals make up the workforce. Employee motivation is at an all-time high. Their work ethic is also quite strong.
Entrepreneurs have several chances in Latvia. The incentives and resources made available by the Latvian government are one of the key causes of this. The government significantly lowers tax rates to boost the competitiveness of new investors. If certain requirements are satisfied, it’s even feasible for certain taxes to be close to $0. Allowing investors to remain in the country and, after five years, the right to citizenship is one of the most significant incentives. In the end, Latvia is a member of the EU, making it possible to roam freely throughout the EU after getting residency and citizenship there. The incentives listed below, and additional incentives make it much easier for investors to do their jobs.
Everyone is aware that investing is favored in emerging nations. In several sectors, Latvia has lately achieved significant progress. Particularly in industries like producing building materials, renewable energy, and carpentry, it has achieved significant progress. It can be claimed that the investors would be quite satisfied with the investments made in these locations. The nation’s growth might soon elevate it to the position of one of the EU’s most significant nations. All of this indicates that investing in Latvia is a wise choice.