Invest in Latvia: long-term value in a fast-changing Europe

In a year defined by geopolitical uncertainty, Latvia has quietly delivered one of the strongest investment stories in Northern Europe. From green infrastructure to defence industry and digital finance, investors are choosing Riga as a stable, EU-based platform for growth.

From IKEA Forests to Defence Factories: Latvia’s EUR 1 Billion Investment

Two flagship deals highlight Latvia’s momentum: Ingka Investments, the investment arm of Ingka Group (which owns most IKEA stores), has agreed a EUR 720 million forest and land acquisition in Latvia, backing sustainable timber, renewable energy and long-term asset management, while a memorandum of understanding with Rheinmetall paves the way for a EUR 275 million artillery ammunition factory that will anchor high-value manufacturing, engineering jobs and defence supply chains. Behind these headlines stands a broader pipeline of 24 other investment success stories this year alone, totalling more than EUR 870 million and 1,000 new jobs, with projects from Finland and Sweden (3), Armenia, the United Kingdom, the United States and Ukraine (2 each), Australia (1) and nine other countries— clear evidence that a small, open economy like Latvia is winning the confidence of investors with diverse risk profiles, business models and time horizons.

Open for fintech and Web3

Financial technology and Web3 are among Latvia’s sharpest edges. The country has issued its first MiCA licences to crypto-asset service providers. It is actively positioning itself as a gateway for global fintechs seeking EU market access under a clear and predictable rulebook. Combined with a talent pool, this creates a compelling base for payment innovators, digital asset platforms and data-driven financial services.

Why Latvia now

Latvia’s value proposition is straightforward. The country boasts a skilled, multilingual workforce, advanced digital and transportation infrastructure, a cost-effective environment, and a remarkably competitive tax system, including zero per cent corporate tax on reinvested profits. Add five special economic zones with generous tax rebates, a vibrant start-up scene and a strategic location between the Nordics, Western Europe and Asia, and you have an investment location designed for international business. Ieva Jāgere, Director General of the Investment and Development Agency of Latvia:

“In a world where investors are rethinking their European footprint, Latvia offers a rare combination of strategic location, long-term stability and genuine openness to new ideas.”

For global investors, the message is clear: if you are seeking a location where capital, talent, and regulation align in the same direction, it is time to add Latvia to your shortlist.