Presentation of country

  • Baltic country of 1.9 million inhabitants, at north east of the EU. The capital city Riga with a population of 700,000 people is the largest city of the Baltics
  • Very well performing economy with one of the fastest GDP growths in the EU over last decade
  • Historically advanced production of pharmaceuticals, mechanics and agriculture
  • Average salary of 1300€ / month stimulates many Scandinavian companies move their production and offices to Latvia
  • Listed as the second greenest EU country, it has extremely clean environment as well as a leading position in renewable energy production
  • Among only 7 world countries that have full equal rights for women along with Denmark, Iceland, Sweden, Canada, France, etc.


  • One of the most intensive economic growths in the EU which allowed the average salary to triple over last decade
  • Riga International Airport was the third fastest growing airport in Europe in 2019. It is the largest airport in the Baltic states that serves as a hub for a number of companies including Latvian flag carrier airBaltic
  • Three Latvian ports contribute the largest share of cargo shipment in the Baltics which is the reason why foreign companies choose the country as their principle location
  • Rail Baltica project, a railway line connecting the Baltic states with Western Europe, forecasts to enforce the position of Riga as the hub of the region
  • Listed as the most startup friendly country by Index Ventures in 2021
  • One of the fastest Internet connections in the world
  • Along with Estonia, it has the most competitive tax system in OECD countries
  • GDP growth of 4.3% in 2021
  • Total debt / GDP ratio is 43.5% which is among the lowest rates in the EU

Real estate market

  • Shortage of new real estate projects on the market and a strong demand for new housing boosts prices up: in 2021 real estate prices increased by 11% in respect to 2020. A number of transactions increased by 30% whereas the amount of offers on the market remained the same
  • Fourth fastest growth of house prices in the EU over past decade increasing prices of 2010 up to 80% in 2020
  • Average real estate prices in Latvia in 2020 were only 61.7% (vs. 52.8% in 2010) of the average prices in the EU which shows a great potential for growth
  • In 2021 price per sqm in new projects in Riga reached 2000€ vs. 1600€ in 2020
  • Possibility to have access to financing at the level of 40-50% of the acquisition price for non-residents investors

Tax & Social

  • Corporate tax: 20%
  • Tax rate on rents for non residents investors: 20%
  • Tax on dividends distributed: 0 % on interest for companies; 20 % for recipients in tax heavens
  • Transfer tax of real estate: 3.75% of acquisition price
  • VAT: 21%, reduced rate 12% and 9%
  • Currency: EURO