Cost Effective

In the current economic climate, all businesses are focused on reducing costs while maintaining quality standards. Latvia offers an environment where these apparently conflicting aims can both be achieved. On top of low business tax rates and uncomplicated bureaucracy, many other costs have decreased significantly, particularly for construction, office space and industrial real estate. The current economic slowdown has also had a negative impact on Latvia’s employment figures. The average unemployment rate rose to 7.5% at the end of 2008. However, many businesses see this as an opportunity to attract qualified labour at better rates. Latvia’s labour costs are very competitive, especially compared to those in older EU member countries.

Latvia’s corporate income tax rate is among the lowest in Europe at a flat rate of 15% and dividends to EU citizens are not taxed.  Personal income tax is also at a low flat rate of 26%.

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