Guidance

Doing business in Latvia: Latvia trade and export guide

Updated 29 September 2015

This guidance was withdrawn on

Department for International Trade withdrew this publication because it was out of date.

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This publication is available at https://www.gov.uk/government/publications/exporting-to-latvia/exporting-to-latvia

EU Exit

Learn about changes for UK exporters to Latvia if the UK leaves the EU without a deal.

Managing risk

Find out how UK companies can control risks when doing business in Latvia.

Export opportunities and advice

Find more export advice and explore opportunities overseas on great.gov.uk.

1. Latvia export overview

Latvia is one of the fastest growing economies in the European Union (EU). British quality products are well received in the market and the UK brand is immediately recognised in Latvia.

Contact a Department for International Trade (DIT) Latvia export adviser for a free consultation if you’re interested in exporting to Latvia.

Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Latvia.

Benefits for UK businesses exporting to Latvia include:

  • strategic location
  • ideal starter market
  • open economy
  • sophisticated consumer market
  • English widely used as business language
  • business incentives and EU funding available

Strengths of the Latvian market include:

  • strong economy
  • ease of doing business
  • skilled workforce
  • cost effective
  • strong transport links and logistics base

Read the EU’s practical guide to doing business in Europe.

2. Challenges

As a member of the EU, Latvia does not present major challenges to UK companies. Doing business in Latvia is very similar to doing business in the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Latvia.

3. Growth potential

3.1 Economic growth

Latvia’s economy continues to improve. Although growth has slowed it’s still one of the fastest-growing within the EU and Eurozone.

Annual Gross Domestic Product (GDP) growth was at 2.1% in quarter 4 of 2014. It’s expected that growth will stabilise at 2 to 2.2% in 2015.

Joining the Eurozone didn’t impact prices. Inflation remains stable at around 0%, but is expected to reach 1 to 1.5% in December 2015.

Domestic demand will play a major role in Latvia’s economic growth. Latvia’s export opportunities are also expected to improve.

Latvia’s economy focuses on:

  • transportation
  • logistics
  • food and drink
  • materials
  • information communications technology (ICT)

3.2 Trade agreements

Latvia is a member of the EU and the World Trade Organization (WTO). This means that goods manufactured in the UK are exempt from import duties.

Contact the SOLVIT team if you have market access issues relating to the operation of the Single Market.

3.3 Gateway to markets

Latvia is located at the crossroads of northern and eastern Europe. It’s at the centre of the developing Baltic States market.

4. UK and Latvia trade

The trading relationship between Latvia and the UK is strong and friendly. The UK is Latvia’s 8th largest export market.

In 2013 total turnover of goods and services of Latvia with the United Kingdom was £745 million.

Top UK exports to Latvia are:

  • machinery
  • wood
  • metal
  • electrical equipment
  • textile
  • transport vehicles

5. Opportunities for UK businesses in Latvia

Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.

Access high value public procurement notices via Tenders Electronic Daily (TED). TED contains all procurement notices above a certain threshold from the EU and European Economic Area (EEA).

The Procurement Supervision Bureau publishes all public tenders for Latvia. The official language for tender applications is Latvian.

Learn more about business opportunities in the Nordic and Baltic regions.

5.1 Education

Educational institutions in Latvia are developing. There is a desire for new technologies and creativity.

Latvia is set to receive 4.4 billion Euros of the EU funding. 12% will be spent on the education sector.

Opportunities for UK companies include:

  • top level training
  • ICT infrastructure
  • software
  • e-programmes

Contact Sanita.Bankava@mobile.trade.gov.uk for more information on education opportunities in Latvia.

5.2 Infrastructure

Transport infrastructure development has always been one of the highest priorities for Latvia. Continued investment in sea port development is required.

There will be increased attention in coming years towards the railways. The ‘Rail Baltica’ project is a huge development linking Finland to the Baltic States and Poland. Phase 1 will be completed by the end of 2015. The new European standard gauge rail project will link the 3 Baltic states with the rest of the EU. The project, worth £3.2 billion, is in the research and project stage.

There are several construction projects in Latvia. Riga International airport are building a new terminal to meet increased demand. Latvia’s bridges are in a critical situation and need reconstruction.

Opportunities for UK companies include:

  • railway projects
  • reconstruction of airports
  • air-traffic control system upgrade
  • military infrastructure projects

Contact Aldis.Celms@mobile.trade.gov.uk for more information on infrastructure opportunities in Latvia.

5.3 Energy

The Latvian energy sector is one of the ‘greenest’ in Europe. Latvia’s EU target for renewable energy sources is 40% by 2020.

Latvia’s aims to increase energy efficiency in commercial buildings and to replace fossil energy sources with renewable ones. It is expected that gas market will be liberalised by 1 April 2017.

Opportunities for UK companies include:

  • energy efficiency measures
  • energy efficiency management systems
  • smart grids, smart meters, sustainable use of energy sources

Contact Rolands.Kumpins@mobile.trade.gov.uk for more information on energy opportunities in Latvia.

5.4 ICT

The ICT sector in Latvia is developing rapidly. It generates 6% of all taxes, making a significant contribution to the economy.

The Latvian government supports industry growth. The ‘Middle Mile’ is a project planning to connect the broadband internet optical fibre network throughout Latvia to rural areas. The project is planned to be carried out during 2014 to 2017.

Opportunities for UK companies include:

  • cyber security
  • education
  • Near Field Computing (NFC) mobile payment systems
  • customer-tailored software solutions and application

Contact Rolands.Kumpins@mobile.trade.gov.uk for more information on ICT opportunities in Latvia.

6. Start-up considerations

UK companies can approach the Latvian market in several ways:

  • export directly
  • set up a foreign branch office
  • appoint a distributor
  • form a joint venture
  • manufacture under license agreement with a Latvian company
  • sell franchise
  • establish a local company or merger and acquisition of a Latvian company

In most cases doing business in Latvia requires local representation. The appointment of a local partner or representative may be the first step.

In Latvia, there are a number of regulatory institutions that specialise in different areas. The most important are the:

Contact the Department for International Trade (DIT) team in Latvia to help find tax and legal advisers before entering into agreements.

7.1 Standards and technical regulations

Products and packaging should meet EU standards.

Latvijas Standarts is the standards authority in Latvia.

Labelling requirements are harmonised with EU regulations. Labelling must be in Latvian. It must contain the name of the product, content, the manufacturer and instructions for use.

7.2 Intellectual property

Trademarks, designs, patents and copyright are the principal forms of Intellectual Property (IP) protection available to companies and individuals.

IP law, especially for patent protection, is not totally harmonised within the EU.

More information about patents is available from the State Patent Board.

8. Tax and custom considerations

8.1 Value added tax (VAT)

There are 2 VAT tariffs in Latvia:

  • 21% standard tariff
  • 12% lower tariff for some goods

You can find the exact breakdown of taxes from the State Revenue Service.

8.2 Corporate tax

Standard corporate tax in Latvia is 15%.

8.3 Income tax

The standard income tax tariff is 23%. 10% tax on income other than capital gain is payable and 15% on capital gain.

8.4 Documentation

Goods which are in free circulation within the European Union can move between member states without being subject to any documentation requirements.

This does not apply to excise or controlled goods which do need documentation.

8.5 Customs

The internal market of the European Union is a single market which allows the free movement of goods and services. Therefore no import duties are applicable for goods imported from within the EU.

9. Entry requirements

EU residents do not require a visa to enter Latvia, but are advised to travel with a valid passport or ID card.

9.1 Travel advice

If you’re travelling to Latvia for business, check the Foreign and Commonwealth Office (FCO) travel advice beforehand.

10. Contacts

Contact the Department for International Trade (DIT) team in Latvia for more information on opportunities for doing business in Latvia.

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