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
Ventspils Free Port is a special economic zone (SEZ) with considerable tax incentives that promote export and industrial activities as well as strengthen the global competition of EU companies. In accordance with the law Application of Taxes in Free Ports and Special Economic Zones and EU regulations, licensed companies are entitled to apply considerable direct and indirect tax breaks.
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! marketing@portofventspils.lv
Businesses currently in Freeport of Ventspils
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.
Aleksejs Vasiljevs, Procurator at AS Wasserkabel Baltic:
– Ventspils is a friendly city for our business and very beneficial in terms of traffic where everything is located together – port, railway, motorway. Upon starting the business, we were granted tax incentives, which is very important for new companies, and we also received fast and qualitative assistance at various municipal institutions of Ventspils City.
Wasserkabel is an energy-efficient and convenient heating and cooling system that is very popular also outside the Baltic States. With our customer base expanding, we are planning to use transportation services of the Port of Ventspils in the future as well, delivering our products to customers around the world.