'21 | Latvian Business Guide
Norwegian Financial Instrument (2014- 2021) The total available program co-financing is EUR 14 705 882, and the ongoing programs can be checked at eeagrants.lv. Co-financing beneficiaries are small and medium-sized enterprises. Some industries are not eligible to apply for funding under this program. The program covers these areas: • Open call for “Green Innovation and ICT product implementation in manufacturing process” • Grant scheme “Green innovation and ICT product development” • Grant scheme “Development of Technologies for improving life quality” • “Business Technology Centre” project • Bilateral collaboration fund
LATVIAN STATE AID PROGRAMMES TAX INCENTIVES SPECIAL TAXATION REGIMES Latvia has five Special Economic Zones (SEZ): • Riga Free Port (www.freeportofriga.lv) • Ventspils Free Port (www.portofventspils.lv) • Liepaja Special Economic Zone (www.liepaja-sez.lv) • Rezekne Special Economic Zone (www.rsez.lv) • Latgale Special Economic Zone (www.invest.latgale.lv/en)
The main benefits for companies operating in Free Ports and SEZs are: • Up to 80% rebate on real estate tax (1.5% in Latvia) • 80% rebate on corporate income tax* • 80% rebate on withholding tax for dividends, management fees and payments for the use of intellectual property for non-residents (rates for each type of withholding tax vary) *Applies in case of withdrawal of dividends. Otherwise CIT in Latvia is 0%. The maximum accumulated amount compensated to the company by these conditions collectively is 35% (45% for medium and 55% for small enterprises) of the company’s total ongoing investment of up to 50 million euros. Please note that this example is of informative nature only. Exact tax calculations are provided by respective divisions of State Revenue Service (www.vid.gov.lv). 20
