Latvia: Substantial tax breaks available for businesses operating in the Latgale special economic zone.
As of 2 January 2017, entrepreneurs operating within the newly established special economic zone (SEZ) in the Latgale region may be eligible for certain tax breaks. Following implementation of an initiative by the Ministry of Environmental Protection and Regional Development of the Republic of Latvia, a new SEZ was established in the region to attract new investment and to develop the existing business climate, consequently boosting the region’s further growth.
Up to 5% of the region’s territory, i.e., almost 73,000 hectares, have been allocated for project realization. However, no strict borders have been set as regards the area of the SEZ, thus allowing for businesses to determine the most suitable locations. Should an enterprise be granted inclusion in the SEZ, tax breaks in the shape of corporate income tax and real estate property tax can amount to up to 80%. Moreover, capital companies will be granted tax incentives to promote investment.
The SEZ will last until the end of 2035.
Executed by Ministry of Environmental Protection and Regional Development of the Republic of Latvia.
Value est.: no specific figures
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