LATVIA

COUNTRY

LATVIA

REGION

Eastern Europe

POPULATION

1,862,687 (July 2021 est.)

GENERAL INTRODUCTION

Latvia is a country in the Baltic region of Northern Europe. It is bordered by Estonia, Lithuania, Russia, Belarus, and the Baltic Sea. Across the Baltic Sea lies Sweden. The government system is a parliamentary republic; the chief of state is the president, and the head of government is the prime minister. Latvia has transitioned to a market-oriented economy in which the prices of goods and services are determined in a free price system. Latvia is a member of the European Union (EU).

WIFI SPEED

Average connection speed (Mbit/s) – 19.85
Broadband average connection speed (Mbit/s)- 128.69

ELECTRICAL OUTLET

For Latvia there are two associated plug types, types C and F. Plug type C is the plug which has two round pins and type F has two round pins with two earth clips on the side. Latvia operates on a 230V supply voltage and 50Hz.

PER CAPITA GDP

$17,619.95 (2020 est.)

CLIMATE

maritime; wet, moderate winters

RESIDENCE- BY- INVESTMENT

The Latvia Residence by Investment Program was launched on 1 July 2010 as an initiative to sustainably overcome the economic crisis of 2007– 2009. Foreign nationals may apply for a residence permit in Latvia through various options.

INVESTMENT

• Real estate investment of EUR 250,000

REQUIREMENTS

There are several qualifying options to obtain a residence permit through the Latvia Residence-by-Investment Program. Applicants may choose from one of the following options:

• The purchase of real estate of EUR 250,000, plus a one-time payment of 5% of the purchase price to the state budget
• The investment of EUR 280,000 in the subordinated capital of a Latvian bank for a period of five years, plus a one-time payment of EUR 25,000 to the state budget
• The investment of EUR 50,000 in the equity capital of a Latvian company (provided that the company annually pays at least EUR 40,000 in taxes), plus a one-time payment of EUR 10,000 to the state budget
• The purchase of special-purpose interest-free bonds at a nominal value of EUR 250,000, plus a one-time payment of EUR 38,000 to the state budget

KEY BENEFITS

• Visa-free access to Europe’s Schengen Area
• No minimum stay required to be eligible for the residence permit renewal
• Fast-track application procedure
• Russian widely spoken
• Excellent transport links with Russia and other EU member states

PROCESSING TIME

• The average time is 3 months.

NATURAL RESOURCES

peat, limestone, dolomite, amber, hydropower, timber, arable land

ETHNIC GROUPS

Latvian 62.7%, Russian 24.5%, Belarusian 3.1%, Ukrainian 2.2%, Polish 2%, Lithuanian 1.1%, other 1.8%, unspecified 2.6% (2021 est.)

LANGUAGES

Latvian (official) 56.3%, Russian 33.8%, other 0.6% (includes Polish, Ukrainian, and Belarusian), unspecified 9.4%; note – data represent language usually spoken at home (2011 est.)

RELIGIONS

Lutheran 36.2%, Roman Catholic 19.5%, Orthodox 19.1%, other Christian 1.6%, other 0.1%, unspecified/none 23.5% (2017 est.)

MEDIAN AGE

total: 44.4 years
male: 40.5 years
female: 48 years (2020 est.)

URBANIZATION

urban population: 68.4 % of total population (2021)
rate of urbanization: 0.98% annual rate of change (2020-25 est.)
total population growth rate v. urban population growth rate, 2000-2030

PHYSICIAN DENSITY
3.19 physicians/1,000 population (2017)

GOVERNMENT TYPE

Parliamentary republic

UNEMPLOYMENT RATE

6.14% (2019 est.)
6.51% (2018 est.)

TAXES

Personal Income Tax Rate (highest marginal tax rate) – Personal Income Tax Rate – 31%

Corporate Income Tax Rate (excluding dividend taxes) – The standard corporate income tax rate for most sectors is 20%.

Latvian residents are liable to income tax on their worldwide income. Non-residents are liable to income tax on their Latvian-sourced income. Personal income tax is charged at 20%, 23% and 31% differential tax rate from January 2021 on employment and other income, except for capital gains.

Dividends, interest and income from life insurance contracts and private pension funds are taxed at 10%. Capital gains on the disposal of capital assets (such as real estate, shares and bonds) are taxed at 20%.

Foreign tax relief

Residents are entitled to relief from double taxation under national legislation and effective tax treaties. Generally, foreign tax paid on income included in the tax base is allowed as a credit against PIT on the basis of documentary evidence of income earned and income tax paid approved by the foreign tax authorities. The tax credit should not exceed the Latvian tax attributable to the income earned abroad.

According to the national legislation, PIT is not applicable on employment income derived and taxed in another EU/EEA member state or in a country that has an effective double tax treaty (DTT) with Latvia. Foreign employment income not taxed attracts Latvian PIT at the progressive rates.