Latvia is a Baltic country of the European Union (EU), being the WTO member, it relies on relevant norms as well as on EU legislation, governmental norms and on existing international instruments. The state is in Northern Europe and bordered by Estonia, Russia, Belarus and Lithuania. Latvia has an attractive environment for doing business as in some cases legislation completely exempts investors from taxes.
The advantages of registering a company in Latvia:
- Low tax rates or tax exemption comparing to other EU countries. If the company’s profit is reinvesting, there is no obligation to pay corporate income tax. The tax of 20-25% is payable now of the distribution of returns;
- Tax on “microbusiness” – small businesses pay 15% tax if the annual turnover does not exceed 40,000 EUR;
VAT rate is 21%. To maintain the status of the VAT payer you must to submit reports (declarations) and pay local taxes in a timely manner;
- The employer’s contribution rate (so called social tax) is 24.09% (payable by the employer);
- Solidarity tax is payable at the rate: 24.09% for employer and 11% for employee;
- Efficiency, simplicity and low cost of company registration and administration with a personal approach;
- The opportunity to obtain a residence permit in Latvia based on investments in the company’s capital and in the subordinated capital of Latvian credit institutions;
- Focus on non-residents support, financial services are providing in Russian and English;
- The Convention for the avoidance of double taxation as of 01/01/2019 is signed with 61 countries.
For the majority of Aligorex Group clients, the main advantage of registering a company in Latvia is the possibility to transfer funds to the nearest European jurisdiction with a high level of data confidentiality. Our employees at the Latvian office will always provide all necessary assistance and advice on all issues related to the establishment of a business.