Macroeconomic and Political Stability

Latvia is a fully integrated member of all major economic and political structures—including the European Union, NATO, WTO and OECD —advancing trade, peace and freedom in Europe and the world. Its position in the global market offers investors both opportunity and stability.

Macroeconomic security

In the wake of the economic downfall Latvia’s growth was stopped, yet it successfully re-emerged due to a number of difficult measures implemented by the government laying the groundwork for sustainable growth. Latvia has made rapid progress in adjusting its economy since the economic crisis, as illustrated by its successful entry to the euro area at the beginning of 2014, and has implemented a number of structural reforms enabling membership of the OECD. Some indicators of macroeconomic stability include:

  • Protection of investments: Latvia has bilateral agreements with over 50 countries for the promotion and mutual protection of investments. The agreements grant safety and protection to investments made in real estate, intellectual property, shares or any other form of investment.
  • WTO: Latvia’s external trade and customs policy is based on free trade principles. It is an active participant of the World Trade Organization, enjoying all the benefits of free and open trade in the world’s markets.
  • Eurozone: Latvia joined the Euro in 2014, enabling more advantageous interest rates and further improving the investment environment.
  • Central bank stability: Latvia’s central bank, the Bank of Latvia, is a participant in the European System of Central Banks, cooperating with other institutions of the EU and creating a secure and favorable environment for business and investment. It has showed strong leadership in keeping the Lat pegged to the Euro through the economic crisis of 2008.
  • OECD: Latvia became a full-fledged member of the Organisation for Economic Co-operation and Development in 2016.

Political and legal stability

Latvia is a democratic republic that abides by the rule of law. It is fully integrated into the European Union, applying EU laws and regulations within its legal system. Indicators of Latvia’s political stability include:

  • Lawful treatment of foreign investors:By law, investors from other countries have the same rights and duties as local investors. Any foreign investor may be sole founder and owner of a company. International companies registered in Latvia are entitled to buy land and property. Foreign investors (as individual persons) can be provided temporary residence permits.
  • NATO: Latvia is a full and active member in the North Atlantic Treaty Organization, providing an effective structure of political cooperation and military security.
  • IP protection: Latvia has all the same intellectual property (IP) rights and protection demands applicable as any other EU member state. Latvia is not on the Special 301 Report, indicating that Latvia provides effective protection of IP rights as assessed by the Office of the United States Trade Representative.
  • Schengen: Latvia is a member of the Schengen zone, which allows passport-free travel across most of Europe.