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Tax reliefs
The Freeport of Ventspils, as a special economic zone, offers companies significant tax reliefs that help reduce costs, enhance competitiveness, and promote investment and exports. In accordance with the laws and regulations of Latvia and the EU, licensed capital companies are eligible for both direct and indirect tax reliefs.
Tax reliefs
Licensed capital companies are eligible for corporate income tax and immovable property tax reliefs of up to 80%. The total amount of tax support depends on the volume of investments made and the size of the company and may reach up to 40% of investments for large enterprises, 50% for medium-sized enterprises, and 60% for small enterprises.
In practical terms, this means:
- 4% corporate income tax on dividends (instead of the standard 20%);
- 0% tax on reinvested profits;
- 0.3% immovable property tax (instead of the standard 1.5%).
If a licensed capital company has concluded an agreement on operation under the free zone regime, it may also be eligible for reliefs in respect of value added tax (VAT), excise duty, and customs duty, depending on the type of activity.
Application process: simple and straightforward
The following documents are required:
- an application in free form
- a copy of the Articles of Association
- financial reports for the previous two years (if available)
- a business plan
- an evaluation criteria table for the intended activity
- declaration on compliance with the status of a small (micro) or medium-sized commercial company
- information and declarations
- investment schedule
If a capital company intends to conclude an agreement on licensed commercial activity under the free zone regime, it also requires a certificate issued by the State Revenue Service confirming the compliance of the company’s territory with the requirements for the implementation of the free zone regime.
Access to direct tax reliefs
A licensed commercial company has access to direct tax reliefs starting from the tax period in which the certificate for their application is issued and the investment agreement is concluded.
Information on the calculated corporate income tax relief shall be submitted by the licensed capital company to the State Revenue Service along with the company’s annual report.
Relief on immovable property tax shall be calculated and granted by the Ventspils City Municipality.
Direct tax incentives are applicable until 31 December 2050.
Do you require further assistance?
If you require further assistance in preparing documents or a consultation regarding the process, please contact us at: [email protected]
Special economic zone
Businesses currently in Freeport of Ventspils
Valmiera-Andren representative in Ventspils Aigars Millers:
– Ventspils was chosen because of its port infrastructure - thanks to its ice-free harbour, which can handle large ships, the company can transport bulky goods (up to DN 8000) and fibreglass equipment to countries all over the world.
Member of the Board of Ventspils Welding Plant Jevgēnijs Lapkovskis:
– It is much easier to work in Ventspils than in Riga – less red tape and cooperation with the municipality make Ventspils attractive for us. One of the factors making the city unique is the ability to combine tourism and industry. The North Kurzeme Vocational Education Competence Centre offers training programs that are directly related to the company’s field of activity, e.g. Metalworking, Electronics, Mechanical Engineering Technology and others.
