Latvia Geography, Politics, and Economy

Located in the Baltic region of Northern Europe, Latvia is a member of the European Union and home to Latvians, Livonians, as well as a number of ethnic Russians. Its capital city is Riga and the country’s population is just shy of 2 million people, as of the 2018 estimate.

Its political history has included Swedish, Polish and Russian rule, most recently as part of the Soviet Union for 45 years after WWII and until its independence in 1990. Latvians have continued to maintain their cultural identity throughout foreign occupation through their language and musical traditions. Latvia has a temperate climate composed of forests, as well as arable land. Common species of wildlife include wild boar, moose, and wolves. The white wagtail is the national bird of Latvia.

The Latvian economy, which experienced a high growth rate in the 2000s, suffered much the same as others in 2008 and is still trying to recover and stabilize. The unemployment rate has improved and its GDP has recovered some of its earlier momentum. The transportation sector is around 14% of its GDP, given its prime location between larger economies such as the Nordic states and Russia.

2021
April 2Good Friday
April 4Easter Sunday
April 5Easter Monday
May 1Labour Day/May Day
May 1Constituent Assembly Convocation Day
May 3Public Holiday
May 4Independence Restoration Day
May 9Mothers’ Day
May 23Whitsunday
June 23Midsummer Eve
June 24Midsummer Day
June 25Public Holiday
November 18Republic of Latvia Proclamation Day
November 19Public Holiday
December 24Christmas Eve
December 25Christmas Day
December 26Second Day of Christmas
December 31New Year’s Eve
  • SIA (Sabiedrība ar ierobežotu atbildību)
  • AS (Akciju sabiedrība)
  • IK (Individuālais komersants)
  • PS (Pilnsabiedrība)
  • KS (Komandītsabiedrība)
  • ĀKF (Ārzemju komersanta filiāle)
  • BO (Bezpeļņas organizācija)
  • VSIA (Valsts sabiedrība ar ierobežotu atbildību)
  • Corporate Tax: 0% (20% on distribution of profit)
  • Income Tax (Lowest Marginal Rate): 20%
  • Income Tax (Highest Marginal Rate): 31.4%
  • VAT/GST/Sales Tax: 21%
  • Rietumu Banka (Local Bank)
  • Citadele Banka (Local Bank)
  • Norvik Banka (Local Bank)
  • Baltic International Bank (Local Bank)
  • BlueOrange (Local Bank)
  • Latvijas Pasta Banka (Local Bank)
  • Bank M2M Europe (Local Bank)
  • Meridian Trade Bank (Local Bank)
  • Reģionāla investīciju banka (Local Bank)
  • Swedbank (Foreign Bank)
  • SEB banka (Foreign Bank)
  • Privatbank (Foreign Bank)
  • Luminor Bank (Latvija) (Foreign Bank)
  • Svenska Handelsbanken (Foreign Bank)
  • Danske Bank (Foreign Bank)
  • Bigbank (Foreign Bank)
  • OP Corporate Bank (Foreign Bank)
  • Scania Finans Aktiebolag (Foreign Bank)
  • Aktsiaselts Eesti Krediidipank (Foreign Bank)
  • Nordea Bank (Foreign Bank)

Aadmi can support you with your expansion to Latvia. Our team of experts in country manage every aspect of your expansion from incorporation, accounting, legal, and even administrative concerns.  Matched with Global People Strategist’s powerful labor compliance software, your company is in good hands.

Contact us today for more information about how your company can benefit from using Aadmi as your global expansion partner.

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