Special Economic Zone

Special Economic Zone

Freeport 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

1. Application of the company.
2. A copy of the Registration Certificate of the company.
3. A copy of the Articles of Association of the Company.
4. Annual reports from the previous 2 years (if available).
5. A plan of action of the company, including the planned investment schedule.
6. A filled-in and signed table of the evaluation criteria of planned activities.

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]