The Republic of Latvia is the Baltic state in Northern Europe situated on the coast of the Baltic sea.

Status – A democratic parliamentary republic established in 1918. Latvia is a democratic and developed country and member of the European Union, NATO, the Council of Europe, the United Nations, CBSS, the IMF, NB8, NIB, OECD, OSCE, and WTO. Latvia was accepted into the Euro zone in since January 1, 2014. Latvia has Romano-Germanic system of law.

Capital – Riga

Official languages – Latvian

Currency – Euro (EUR)

Taxation – The standard corporate income rate is 15%. There is a reduced rate of 9% (2015: 11%, 2016: 13%, and 2017: 15%) of the annual turnover that applies to registered micro-enterprises (income below app. EUR 100,000, less than 5 employees, and the shareholders must be individuals). VAT 21% (reduced rate 12%). Gains from a disposal of fixed assets are not taxable if the assets are substituted by similar new ones within 12 months. There is 0% on gains from sale of shares in subsidiaries in any jurisdiction except offshores.

Advantages of setting up a company in Latvia.

Latvia is a «white list» jurisdiction. The country is among the Top-10 jurisdictions with the lowest taxation and is recognized as the reputable banking center of Eastern Europe due to a very strict banking secrecy. Corporate law is based on European laws. Latvia has very simple accounting and tax reporting.

Latvia jurisdiction is mostly chosen for the following aims: trading, import/export, agriculture, production.