'21 | Latvian Business Guide
Incentives for Investors Latvia offers investors a wide array of incentives, including support via EU Structural Funds and a business-friendly environment with appealing tax rebates. Businesses operating in Latvia can also take advantage of its EU membership privileges, which allows the free movement of goods, services, capital and labour, and euro-area location. The Latvian government continues to work on developing a favourable climate for foreign investment by improving the business environment. Legal and administrative requirements are being eased, thus facilitating cooperation between international and local non-government partners.
EU FUNDING, 2021-2027 The amount of EU Structural Fund financing granted for government-support programmes is approximately EUR 10.58 billion euros up to 2027. The EU funds are focusing on the following areas: • Climate change and sustainability • Economic transformation and productivity reform • Digital transformation • Income inequality reduction • Health care • Rule of Law In the following years, support programs will continue to follow the previous path, devoting most support to knowledge-intensive & green direction. The outcome of support dedicated to companies will be the creation of new knowledge, high valueadded activities and support towards COVID-19 affected companies. One of the examples of to-be confirmed incentives: • High value-added industrial park program. The goal is to attract internationally renowned industrial park operators with their client portfolio. The aim is to create 11 industrial parks in Riga and regions with high-paid jobs in the technically advanced field. Each project plan is 75 jobs with an average salary of 2,500 EUR per month. The support provided for premises and infrastructure development is ~ 35-45% of the amount. • The implementation of Recovery and Resilience Facility “NextGenerationEU” programs starting from 2021. These will include various financial instruments to emerge more resilient from the current crisis, including additional support mechanisms regarding company digitalisation and employee training. Just Transition Mechanism Support for the development of the public infrastructure needed for business by promoting the transition to a climate-neutral economy in energy-efficient industrial areas, promotion of the business transformation and the preservation of climatefriendly jobs or the creation of new ones – indicative 70 million EUR; Activities for enterprise “greening” and product development by promoting energy efficiency and the deployment of energy-efficient technologies (including RES) in enterprises, as well as the introduction of new technologies and products and the reduction of the environmental impact of production - indicative 50 million EUR Zero-emission friendly mobility in municipalities by increasing the use of resourceefficient and environmentally-friendly vehicles - indicative 30 million EUR; Skill development and training offer to transition to climate neutrality in particularly affected areas - indicative 24 million EUR.
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