Incentives for investors

EU-funded programmes

As a Member State of the European Union, Latvia implements EU regional funding for economic and social development. The largest financial instruments from which Latvia receives EU financial assistance are EU funds: European Social Fund (ESF), European Regional Development Fund (ERDF), Cohesion Fund (CF) and Just Transition Fund (JTF). For the current EU funding budget, Latvia has been allocated EUR 10.5 billion for 2021-2027. Through EU funds, direct support is available for both local and foreign capital companies. Please see below some of the support instruments available for entrepreneurs:

Programme name Supported activities Financing Support intensity of eligible project costs
Support for employee training Training of employees 200 000 EUR (per year) 50-60%
Voucher R&D activities, prototype development 25 000 EUR (per year) 45-85%
Norwegian Financial Instrument Green innovation and ICT products 14 705 882 EUR (total funding) Co-financing for small and medium-sized enterprises
Startup support programme R&D, innovation and new products 200 000 EUR (in 3 years) 45%
Innovation motivation programme innovative entrepreneurship 5 303 932 EUR (total funding)  -
Reserch comericalization prototyping, commercialization of R&D 300 000 EUR (per project) 90%

Other incentives include loan programs from State Financial Institution, credit guarantees, business incubators, venture capital and others. ALTUM offers programs for entrepreneurs, which include loans and credit gaurantees.

Green Channel 

The Ministry of Economics and LIAA offers '"Green Channel" for investments in priority sectors:

  • ICT
  • Bioeconomy
  • Smart materials and Photonics, Technology
  • Biomedicine and Pharmacy
  • GBS
  • Smart Energy and Mobility
  • Construction 
  • Transport and logistics

It shortens the time for administrative procedures by half for territorial planning, residence permits and foreign workforce attraction. The companies must fulfil 3 out of 4 criteria to apply for the support: 

  • The investment amount in 3 years should be at least 5 million euros (in Riga – at least 10 million euros).
  • The investment project should create 75 new workplaces (in Riga–100) or 50 new workplaces (in Riga-75) with Latvia’s monthly average salary of the previous calendar year (published on the website of the Central Statistical Bureau of Latvia) multiplied with a coefficient of 1.5 (in Riga - the coefficient is 2).
  • The planned product and service export amount in three years after the launch of the investment project should be larger than 3 million euros (in Riga – the amount is 5 million euros).
  • The planned investment in R&D and employee competence development should be over 250 thousand euros.

For more detailed information, please contact the Investment team.

Business incubators

13 LIAA Business Incubators throughout Latvia support the necessary environment for the setup and development of business by offering training, mentor support and grants, and organizing events on general business issues. Business Incubators help individuals with a business idea and entrepreneurs to set up a business with a clear idea or develop their existing ones. A wide and free-of-charge co-working network is offered by Investment and Development Agency of Latvia (LIAA) at the Creative Industries Incubator in Riga, plus 12 regional LIAA Business Incubators are an option for ones looking for work settings on the outskirts of Riga - in Daugavpils, Jūrmala, Jelgava, Kuldīga, Liepāja, Madona, Ogre, Rēzekne, Sigulda, Talsi, Valmiera and Ventspils.

There are two stages of incubation – pre-incubation and incubation. The pre-incubation program is for authors of ideas who are still on the way to their product or service. The applicant must have a business idea, a wish to learn and participate in online training for 6 months. Together with others, the pre-incubation member will practically learn to test their idea’s viability, as well as get feedback from other members and business owners from the business incubator community.

The incubation program invites companies that have already developed their product or service and have begun implementing them. The incubation program is for companies that have been registered in the Enterprise Register of the Republic of Latvia for no more than 3 years. The common goal of the incubation members and the business incubators is to develop products and services and grow the incubation member resources and knowledge pool. This way, companies can become globally competitive and have export potential in the future.

To get to know LIAA Business Incubators closer, please visit: inkubatori.magneticlatvia.lv

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