The Schengen area

The Schengen area

Schengen area

The Schengen area includes 26 European countries which have decided to remove all internal border controls, which means that all travellers can move freely within the Schengen area without having to show their passports on arrival of exact coutry.
The Schengen name is taken from town in Luxembourg, where the original agreement to create a borderless European travel area was signed.

Schengen area countries have strict border controls for travellers who cros the external borders of the Schengen travel zone.

Countries in Schengen area

The 26 Schengen area countries are made up of 22 out of the 27 EU countries as well as 4 non-EU countries.

Schengen area countries are:
Austria,  Belgium
Czech Rep., Denmark
Estonia, Finland
France, Germany
Greece, Hungary
Iceland, Italy
Latvia. Liechtenstein
Lithuania, Luxembourg
Malta, Netherlands
Norway, Poland
Portugal, Slovakia
Slovenia, Spain
Sweden, Switzerland

More about traveling you get in section on immigration.

Why to do business in Latvia

Business in Latvia

Latvia is a small country in today’s globalized world and Latvia recognizes the importance of attracting foreign investment to sustain economic development. Latvia has consistently pursued liberal economic policies and welcomes investments that foster principles and benefits associated with free markets.


World Bank’s report Doing Business 2012  ranks Latvia as 21th out of 183 countries for ease of doing business, measuring quantitative indicators of regulations and the protection of property rights.
And among small nations of the world (population under 3.5 million), Latvia ranks in 2nd place.

Bureaucracy

The Latvian government and local authorities have worked diligently to streamline procedures for doing business in Latvia. For example, forming a company can be completed even in one day. More about company formation you read insection on ltd registration.

Collaboration with investors:

Government of Latvia fully understands that active dialogue between elected officials and international investors is a vital and continuous process. Key investment issues are also regularly raised with the government through the Foreign Investors’ Council in Latvia, various chambers of commerce and, less formally, through access to individual officials and decision makers.

Significant EU Structural Funds available:

As a member of European Union, EU funds are also available for companies in Latvia. Moe about advantages for Latvian company you can read in section on Advatages of Latvian company.

Entrepreneurs from Japan interest in business in Latvia is growing

Japanese interest about business oportunities in Latvia is growing

In the last few years there is increased interest about opportunities available in Latvia by Japanese entrepreneurs.

Japanese businessmen have observed Latvia's achievements in overcoming the crisis and restoring the economic growth, and now there is increased interest in the opportunities for cooperation between Latvia and Japan. It is safe that in the near future the economic cooperation between Japan and Latvia will become more intense since a number of Japanese companies consider the opportunity to invest in Latvia or start cooperation with the Latvian entrepreneurs.
More information about starting business in Latvia you can find in section company formation.

Residence permits in Latvia

Residence permits in Latvia

As of 2010, when the amendments in the Law “On Emigration” were approved by governmet of Latvia, according to the recent figures of the Office of Citizenship and Migration of the Republic of Latvia, the total amount of foreign investments into the Latvian economy comprises 347 million LVL.
The total amount of investors – near 1 700, not including their family members, according to the latest data from the Office of Citizenship and Migration.

An average family of investor consists of a married couple with two children. Each investor has at least one higher education. It is an interesting fact, that 60% have an education in humanities and only 40% -technical education. Approximately 60% of investors are salaried employees, while 40% are entrepreneurs, who run their own business.

Areas of activity of the investors, who have acquired the residence permit in Latvia in return for investments:

23% – service sector (transport, education, health protection, creative professions, etc.)

18% – financial sector (banks, investment and insurance enterprises)

18% – trade (wholesale and retail)

14% – civil engineering of real estate

10% – production

10% – housewives

7% – lawyers and consultants

Please find out advantages of immigration to Latvia.

Invest in Latvia

Why to invest in Latvia?

One of the most important reasons why to invest in Latvia is good place how to enter into large markets.

Latvia has a unique geographical, providing a strategic location for business operations targeting developed economies of the EU and emerging markets of eastern neighbors. Latvia is a natural gateway between the US, EU and Asia (especially Russia/CIS). Advantages enabling successful trade include:

Advanced transport infrastructure: Located on the Baltic Sea, Latvia has three major, ice-free international ports—Riga, Liepaja and Ventspils—that are closely linked into the country’s land-based infrastructure, including an extensive rail, road and pipeline system. The largest airport in the Baltics is Riga International Airport—with over 70 international direct destinations, it serves almost two-thirds of all flights in the region.

You can get more information about advatages of business immigration into Latvia in section advanages of immigration to Latvia

Free trade: Latvia’s external trade and customs policy is based on free trade principles. Latvia is an EU country, a member of Schengen and an active participant of the World Trade Organization, enjoying all the benefits of free and open trade in the world’s markets. Customs and border procedures have been made for effective planning and coordination with trade partners around the world.

In case if businessman is non european citizen, then there can be necessary visa, business visa as traveling documents to Latvia. You can get more information about immigration in section Scheme of immigration.

* The government, the Latvian Investment and Development Agency (LIDA), and the Ministry of Economics propose various changes in legislation, including financing foreign visits, to promote the involvement of foreign investors in Latvia. Since 1999, Latvia is a member of the WTO, but in 2004 it joined the EU and NATO. Latvia has concluded bilateral investment promotion and protection agreements with all of its most important partners.
* The business environment is favorable for foreign investments and entrepreneurship: our laws are in line with the legislation of the EU; besides import duties and taxes, there are no additional limitations for the free movement of capital and goods. In transactions with the EU countries, there are no such restrictions at all.
* The government has prepared a draft investment promotion strategy, in accordance with which Latvia’s main goal is to attract investment in export-oriented manufacturing and services sectors. The strategy identifies target sectors for attracting investment – the forestry and wood industries, metalworking and machine-building, transport and logistics, information technology, life sciences, health care and green technologies.

If you are interested to start business in Latvia then you must visit section on company formation. Sometimes there can be necessity to start business as soon as possible, in such case there is possibility to buy ready made company.

General information about VAT registration

General information about VAT registration

Persons from the Republic of Latvia are registered in the Register of VAT Taxable persons by the following conditions:

- natural persons according to the declared place of residence;
- legal persons according to the legal address.

In order to register in the SRS Register of VAT Taxable Persons, the person has to submit to the respective   SRS local office the registration form  "Registration Application in Register of VAT Taxable Persons".

All clients are registered as VAT payers accoridng to Law on Value Added Tax. When submitting the registration application, one must either a personal identification document or a driver’s licence. If the registration application is signed and submitted by an authorized person, this person should also submit the Power of attorney. A person is registered in the SRS Register of VAT Taxable Persons within 15 working days from the day of the submission of the application.

A person is considered registered in SRS Register of VAT Taxable Persons as of the day when the registration certificate of a VAT taxable person has been issued to them.

In case the person cannot be contacted at the declared legal address or at the declared permanent place of residence, or if the person does not submit information on a SRS request, or the information provided about the material and technical capacity and financial scope to undertake the declared economic activities of the applicant are false, the SRS takes a decision to reject the registration application. When a person receives a rejection of the registration application, the person has the right to add more precise information in the application and to submit it to the SRS again.

In case any person from a EU member state or a person not registered in the territory of the EU undertakes one or more VAT transactions in Latvia, then the SRS registers in SRS Register of VAT Taxable Persons one of the following persons:

- any person from an EU member state or a person not registered in the territory of the EU - at one of the places where the respective transaction has taken place in the Republic of Latvia;
- their authorized person in the Republic of Latvia - according to the legal address or the declared place of residence of the respective person.

To be registered in the SRS Register of VAT Taxable Persons, the person has to submit the registration application "Registration Application in Register of VAT Taxable Persons from EU member state and for persons not registered in the territory of the EU".

When submitting the registration application, one must present either a personal identification document or a driver’s licence. In case the application is submitted by an authorized person, then the authorization also has to be presented.

A person is considered registered in the SRS Register of VAT Taxable Persons within 15 working days from the day of the submission of the application.

A person is considered registered in the SRS Register of VAT Taxable Persons as of the day when they have been issued a registration certificate of a VAT taxable person.

If the person from EU member state or a person not registered in the territory of the EU has not entered all the requested information into the registration application, SRS takes a decision about the rejection of the registration. When a person receives a rejection of the registration, the person has the right to add more precise information in the application and to submit it to the SRS repeatedly. More information you can get in  section Taxes in Latvia.

General terms:

1. Persons registered in the Republic of Latvia, should personally submit the registration application to the respective SRS local office by presenting the personal identification documents or driver’s license. If the registration application is signed and submitted by an authorized person, this person should also submit the corresponding authorization.

Person from an EU member state or person not registered in the territory of the EU submitting the registration application should present a document confirming the identity of the person or a driver’s license. If the registration application is signed and submitted by authorized person, this person should also submit the corresponding authorization;

2. After registration in the SRS Register of VAT Taxable Persons, the registered person regardless it is registered in Latvia, in EU or it is not registered in the territory of the EU, according to Chapter 1 of Article 11 of the law ‘On Value Added Tax’ have the obligation to submit to SRS a tax declaration with tax calculations for the taxation period within 15 working days after the end of the taxation period;

3. Chapter 3 of Article 11 of the law "On Value Added Tax" foresees that tax declarations should be submitted also in cases, when the taxable person in taxation period hasn’t performed taxable transactions. In accordance with the provisions of Chapter 1 of the Article 9 of the law "On Value Added Tax" the taxation period is one calendar month;

4. If the taxable person during one month after the date, when the tax declaration should have been submitted as established in the law, doesn’t submit the declaration or provide false information, or after sending written request by tax administration, hasn’t submitted documents of audit tax calculations or the taxable person is not available at its legal address or the declared place of residence or the address doesn’t exist, according to Chapter 81 of Article 3 of the law "On Value Added Tax" in the order, established by the Cabinet of Ministers, the person could be excluded from the Register of VAT Taxed Persons.
More information you get in section: Accounting services.

About Latvia

 THE REPUBLIC OF LATVIA

Latvia is situated on the shore of the Baltic Sea, and it shares borders with Lithuania at the South, Estonia at the North, Russia at the East and Belarus at the South East. Latvia is one of three Baltic states.

Territory and population of Latvia

The area of Latvia is about 64,6 thousand square kilometres. The population of the Republic of Latvia is 2,2 million people, of which 59% Latvians, 28% Russians, 4% Belarusians, as well as Ukrainians, Poles, Lithuanians, Jews and other nations.
The biggest cities are: Riga (722 thousand inhabitants), Daugavpils (108 thousand inhabitants), Liepaja (85 thousand inhabitants), Jelgava (66 thousand inhabitants), Jurmala (55 thousand inhabitants) and Ventspils (43 thousand inhabitants).
Latvia is divided into four historical areas: Vidzeme, Kurzeme, Latgale and Zemgale. The highest peak is Gaizinsh standing at 311,5 meters. The climate in Latvia is moderate with some temperature fluctuation.

Languages in Latvia

The official language is Latvian. Russian language is often spoken, English and German not too common but in use.

Religions in Latvia

Latvia has no official religion. There are 25 registered religions in Latvia such as Lutheran, Catholicism, Ortodox, Vaishnava etc. The largest religions in Latvia are Catholicism, Lutheran and Ortodox. In general the society is tolerant to different religious, however the church does influence the mood of society.
More about Latvia you read in section about Latvia.

State symbols of Latvia

The Latvian flag is very similar to the Austrian flag, but darker in colour. It is made of bands of dark red, white, and dark red (from top to bottom). The white band is narrower than the red ones.
The national anthem “Dievs, svēti Latviju!” (God, bless Latvia!) was written by a Latvian Composer Karlis Baumanis in the second half of the 19th century and became the national anthem in 1918.
The Latvian Coat of Arms – a shield with a rising sun on the blue background at the top; the red lion on the silver background to the left and the silver griffin on the red background to the right.

State political system

Latvia is a Democratic Republic. The Prime Minister is appointed by the President of the Republic and is the head of the government. The President of Latvia is elected by the Parliament and runs a four year period. The President is mostly s representative power, however he can block some decisions of the parliament.
More about business politics and economics you read in section http://visas.lv/taxes-in-Latvia.htm

International relations

After the restoration of independence in September 1991 Latvia headed towards joining European and international organizations, since April 2004 Latvia is a member of NATO and since May 2004 – Latvia is member of the European Union. Latvia is a member of WTO. and Latvia is also part of Schengen. More about Latvia in Europu you can read in section Latvia in Europen Union.