The operation of Ventspils Free Port is determined by the Law on Ports (1994), Ventspils Freeport Act (1997), as well as the Law on Tax Application in Free Ports and Special Economic Zones (2002).

The Law on Ports governs the principles of operation and administration procedure of Latvian ports. The law also determines the Freeport Authority structure and key responsibilities, vessel traffic management and operational control principles, as well as other port operational issues.

The law provides that the port aquatorium is state-owned and is in the possession of Freeport of Ventspils, while the port territory land area may be part of the state, municipality, legal entity or private property. The overall hydrotechnic structures (piers, flow regulating dams, breakwaters, coast fortifications, fairways, floating navigation and tools) are the property of state or local government. Other port common hydraulic structures can be the property of another private or legal entity. Ventspils Freeport Authority has the right to rent or lease the state or local government-owned land that is in its possession, as well as construct premises (buildings) on this land that are necessary for operation of the port.   

The Law on Ventspils Free Port in parallel to the provisions stated in the Law on Ports lays down the procedure for performance of entrepreneurial activity in the territory of Ventspils Free Port. The Law defines the Freeport of Ventspils operation principes and management procedures in order  to facilitate participation of Latvia in international trade, investment attraction, production and service development, as well as job creation. The Law also gives the right to Ventspils Freeport Authority to enter into contracts with companies, which is a prerequisite for granting license for the further establishment of business in the regime of a free economic zone.

Law on Tax Application in Free Ports and Special Economic Zones determines the procedures for indirect (customs, natural resources, excise, value added) and direct (corporate income, real estate) tax incentives for licenced companies at Freeport of Ventspils.