Contacts
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.
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
Chairman of the Board of HansaMatrix Ventspils Ilmārs Osmanis:
– We started to build the Ventspils Electronics Factory in 2005, and I wondered: “Who would work in the factory?” In response to this question the city even created a new engineering department in the Ventspils University College, Faculty of Information Technology, and later also the Electronic technician program in the North Kurzeme Vocational Education Competence Center. Due to their skills and proximity, the graduates of these programs are still in high demand.
Chairman of the Board of Ventspils High Technology Park Ivars Eglājs:
– Ventspils is the only Latvian city in which the number of ICT companies has increased more than 5 times during the last 7 years. The developed strategy and action plan prescribes a further development and provision of ICT concentration in the city. According to the strategy we plan to make Ventspils more visible in the European ICT map by finding the niche appropriate for Ventspils and the whole region as well as by providing high-quality education for professionals, and excellen infrastructure and the best conditions for ICT companies.
