This small, open economy relies on exports for a third of its GDP. Due to its location on the Baltic Sea, transit services are highly developed, along with timber and wood processing, agriculture and food products, and manufacturing of machinery and electronics industries. Most companies, banks and real estate have been privatized, but the state holds important stakes in large enterprises. The country joined the eurozone in 2014.
Latvia has a flat rate tax of 24% on employment and business for individual residents. Capital gains are taxed at a 15% rate and other income at 10%. Corporations are taxed at a rate of 15%. Moreover, dividends earned by corporations are exempt of tax. The country has multiple bilateral agreements to avoid double taxation of income.
AURAY Capital’s partnership, via Grant Thornton Rimess Baltic, can provide assurance, taxation and advisory services in its Riga office.
Latvia offers a high quality of life, relatively low taxes and a low cost of living. Its capital Riga is a UNESCO world heritage site and it attracts an expat community. Although Latvian is the official language, English is understood in business, as are German and Russian. The cost of living in the capital is low compared to other European cities, and Riga also offers several international schools.