Contacts
Tax Incentives
Port of Ventspils is one of EU’s special economic zones (SEZs) that stimulates all kinds of investments in production. As a SEZ, it is one of the Baltic Sea ports with especially favourable conditions for foreign investors. The accessibility of the infrastructure and qualified labour force of the port and production parks has been appreciated by partners in the fields of engineering, chemical industry, wood processing, electronics, IT and others, who have favoured production in the Ventspils industrial zone.
Tax Incentives in Ventspils Free Port
In the special economic zone the Corporate Income Tax and Real Estate Tax are reduced by 80% until the company compensates up to 35% (55% for small companies and 45% for medium-size companies) of the investments. It means that during the compensation time the Corporate Income Tax rate is 4% and the Real Estate Tax rate is 0.3%. If, in turn, dividends are distributed to a company in SEZ, the profit tax is 4% instead of the usual 20%. Reliefs are also available on indirect taxes: Value Added Tax, Excise and Customs Duties.
Criteria and Application Procedure for Acquiring a Special Economic Zone Licensed Company Status
Ventspils Free Port offers your companies to receive a licence to operate as a special economic zone, which entitles the companies to the tax reductions provided in the law of the Republic of Latvia on Application of Taxes in Free Ports and Special Economic Zones.
An application for obtaining the licence for operation under free economic zone status must be submitted to the Free Port of Ventspils Authority. The procedure set for issuing the licence is in force until at least 2035.
Documents Necessary from the Applicant
In order to acquire a Freeport of Ventspils licensed company status, the company must receive at least 50 points in this evaluation.
If you need any help while preparing the documents, please contact us! [email protected]
Businesses currently in Freeport of Ventspils
Managing Plant Manager of Bucher Municipal Mikus Brakanskis:
– Investing and creating a factory in Ventspils has been and is still a success story for Bucher Municipal. We have implemented multiple expansion projects together with the city administration and freeport within a span of two decades. Teamwork and good collaboration between all three parties have helped us to achieve success. Our journey from a company with few employees to one of the biggest employers in the region would not have been possible without the people who have shaped this story. A story that holds great significance for the whole Bucher Municipal Division. By continuing our development and investing in our site and employees, we will keep producing high-quality compact sweepers in this small city and deliver them to the rest of the world to make it as clean as Ventspils.
The innovative and flexible offer of the Ventspils Freeport Authority stood out among those made by the freeport authorities in other cities. This allowed to reduce the company's risk at the beginning of its operation by renting buildings and land from the Ventspils Freeport Authority, rather than investing in the company's equity capital. The rapid pace of development and growth ambitions led to the decision to relocate the production facility, which was successfully resolved by the City Council and the Freeport Authority of Ventspils. They responded swiftly and professionally to our request for the acquisition of land and buildings. Behind these global challenges lies a number of everyday issues we have effectively solved together over the years, so that we, as a company, city, and employees, have a more comfortable daily life, and can achieve better results.
Hydraulik Bauteile Baltic Procurator Alfred Grieze:
– Since our greatest customer Bucher Municipal Ltd. operates in Ventspils, we chose to launch our company’s operation right here. The future operations and business development in Ventspils was also supported by the fact that the municipality and the Freeport of Ventspils had been very flexible and had supported us in the development process.