Latvia

Latvia offers a unique blend of innovation, quality of life, and economic opportunity within the European Union.

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Riga

Sources: DG for Communication

Euro (€)

Sources: DG for Communication

Latvian

Sources: DG for Communication

1.9M

Sources: Eurostat

Corporate Tax Rate 0% (2025)

A 20% rate applies only to distributed profits.

Following the Estonian model, Latvia's 0% corporate tax on reinvested profits creates a powerful incentive for business growth, expansion, and long-term investment.

R&D Tax Credit

Increased tax deduction coefficients for R&D costs.

Latvia stimulates innovation by allowing companies to apply special coefficients to their R&D costs, significantly reducing their taxable base and encouraging investment.

GDP Growth 1% (2025)

Annual real GDP growth rate forecast.

Latvia's resilient and open economy is poised for strong growth, driven by its strategic location, growing export sector, and increasing foreign investment.

Economic Sentiment Indicator (ESI) 99,6 (2026)

Ranking in the top 20 globally, Latvia offers an exceptionally business-friendly environment with simple processes for starting a business and registering property.

Labour Cost €15.10/hr (2024)

Latvia's competitive labour costs, combined with a skilled and multilingual workforce, offer a significant strategic advantage for businesses in the Baltic region.

Top Personal Income Tax Rate 33% (2025)

Progressive rates of 25.5% and 33%.

Latvia's progressive personal tax system funds its public services and social safety net, with two brackets to ensure a fair contribution from all income levels.

Euro Health Consumer Index Score 29th (2026)

Overall measure of national health system performance.

Latvia's healthcare system provides universal access to medical services, and the country is focused on continuous improvements to quality and patient care.

Global Cost of Living Rank 50th (2026)

Measures relative costs of goods and services.

Latvia offers an attractive and affordable lifestyle, with a lower cost of living than many other EU countries, allowing for greater financial freedom.

Global Happiness Rank 51st (2024)

Evaluates national wellbeing and overall life satisfaction.

With its beautiful nature, rich cultural traditions, and strong community bonds, Latvia provides a balanced and satisfying quality of life for its residents.

Global Peace Index 22nd (2025)

Assesses national peacefulness, safety, and security levels.

As a member of the EU and NATO, Latvia is a safe and secure country with a stable democratic government and a strong commitment to the rule of law.

Working-Age Employment Rate 77,4% (2024)

Percentage of population aged 20-64 that is employed.

With a high employment rate, Latvia's labour market is robust and dynamic, offering good opportunities for its skilled and well-educated workforce.

Annual Inflation Rate 3,8% (2025)

Measures the change in consumer prices over time.

With inflation normalising at a low rate, Latvia's economy provides a stable and predictable financial climate, protecting consumer purchasing power.

Latvia offers a startup visa as a temporary residence permit for non‑EU founders of innovative, scalable, technology‑based startups, typically granted for up to 3 years with fast evaluation of the idea.

Valid passport required; Schengen visa for stays up to 90/180 days, national long‑stay (D) visa or residence permit for stays over 90 days, work, or study; check visa exemptions via Estonian MFA/Police and Border Guard Board.

Valid passport required; Schengen C visa for up to 90/180 days; apply for national long‑stay D visa or residence permit for stays over 90 days for work, study, or startup activities via MFA/OCMA guidance.

Find Latvia’s missions, visa services, and residence permit information via the Ministry of Foreign Affairs’ official consular pages.