special economic zone

​ Ventspils special economic zone offers considerable tax benefits in the form of investment compensation instrument. In accordance with the law Application of Taxes in Freeports and Special Economic Zones and EU regulations, licensed companies are entitled to apply considerable direct and indirect tax incentives.

Contact regarding special
​economic zone tax discounts

igors udodovs
deputy ceo, head of marketing and development

Corporate Income Tax and Real Estate Tax are reduced by 80% until the company compensates up to 40% (60% for small and 50% for medium-size companies) of the investments.
 
It means that during the compensation period:

• Corporate Income Tax rate is 4%;
• Real Estate Tax rate is 0.3%.

This allows companies that invest in Ventspils and work in the special economic zone to considerably reduce costs of operation. 

Competitiveness of the Latvian tax system
 
The Latvian tax system has been customized to foster competitiveness of the businesses located in the country. Year to year, Latvian tax system has gained high evaluations as one of the most competitive in OECD countries. Also, PricewaterhouseCoopers in their annual Paying Taxes reports ranks high the Latvian tax system as with the lowest total tax rates in the region. 
​
In terms of corporate tax, Latvia is in the first place due to such facts as reinvested earnings of companies are not taxed, and there is a possibility of business tax deduction. Thanks to sustainable economic growth and investments, Latvia ranks ninth in terms of international tax conditions.
 
Another benefit is the possibility to apply higher depreciation rates in the calculation of taxes. It means that taxpayers may calculate depreciation from a higher initial value of fixed assets (new technological equipment) using a coefficient of 1.5 and for R&D related costs using a coefficient of 3.