Latvia has become one of Northern Europe’s most dynamic destinations for foreign investment. The country offers a cost-effective business environment, highly competitive tax system, and government-backed incentives.
Latvia offers excellent investment opportunities for international investors, startups, and established companies looking to expand in the EU.
This guide provides a complete overview of how to invest in Latvia, including key advantages, major investment sectors, support programs, growing industries, and incentives available to foreign investors.
Why Invest in Latvia?
Latvia combines the advantages of an EU member state with a highly efficient, business-friendly environment.
From the government reforms and open economy to the competitive corporate tax rates (20%), Latvia is a fantastic option for foreign investors looking to establish or grow operations in Europe.
Latvia offers excellent connectivity to various markets across Europe. Additionally, Latvia has a highly skilled talent pool available for a fraction of the cost of Western Europe.
To top it all off, Latvia offers fast processing times for business establishment, with direct pathways to obtain residency. This includes the Latvia Golden Visa which offers residency in exchange for investment into real estate, business ventures, government bonds, or a direct back deposit.
6 Key Reasons to Invest in Latvia
- Latvian taxes are highly competitive, with a 20% corporate tax rate and up to 80% rebates on corporate income tax in the Economic Zones.
- Strategic government incentives, including tax rebates, grants, and SEZ benefits.
- Access to EU markets, free movement of goods, and strong logistics infrastructure.
- Innovative, tech-driven sectors, including biomedicine, ICT, quantum computing, and smart energy.
- Fast-track procedures through the Green Corridor initiative and Golden Visa.
- Growing defense ecosystem supported by substantial government investment.
If you’re considering investing in Latvia through the Golden Visa program, working with a Latvia Golden Visa lawyer is highly recommended to ensure you meet all the investment requirements.
Investment Opportunities in Latvia
Latvia’s economy is diversifying quickly in 2025, supported by innovation-driven sectors and government-backed development programs. The following industries offer strong potential for foreign investors, according to Latvia’s Investment and Development Agency.
Bioeconomy
Bioeconomy is an essential part of the Latvian economy. Forests cover close to 50% of Latvia’s land, offering growing sectors in forestry, food technologies, sustainable agriculture, and fisheries.
Benefits of investing in Latvia’s bioeconomy sector
- Long-standing expertise in natural resource management
- Strong food-processing industry with export growth
- Access to the ASN bioeconomy protein plant is a cutting-edge facility being developed in Latvia as part of the country’s strategic initiatives in the bioeconomy sector. It aims to advance food processing capabilities while making efficient use of local natural resources.
- Collaboration with the University of Biotechnology on cutting-edge, environmentally friendly protein research.
Latvia’s bioeconomy sector is ideal for investors focused on sustainability, natural resource optimization, and green innovation.
Key players in Latvia’s bioeconomy sector
- Olainfarm
- Food Union
- Grindeks
- PolyLabs
- Fibenol
Biomedicine
Latvia is the Baltic leader in biomedicine, specializing in:
- Precision medicine
- Big-data-driven research
- Biomedical data infrastructure compliant with EU regulations
Latvia offers competitive pricing for high-quality research, supported by state-of-the-art clean rooms and a rapidly growing biotech export sector.
76% of Latvian biomedicine products are already exported to the USA, Japan, Canada, and Europe, positioning the country as a hub for medical innovations and pharmaceutical development.
There are over 500 companies in the pharmaceutical and chemical industries in Latvia, and the country offers over 60 years of experience in biomedicine.
Key players in Latvia’s biomedicine sector:
- Olainfarm
- MGI
- Roche
Smart Energy
The smart energy sector in Latvia is growing significantly with green solutions, sustainable mobility, and technology leading the way.
The country has an extensive 500-kilometer coastline, which holds an impressive 16 GW of offshore wind potential. This, coupled with Latvia’s current energy consumption standing at just 2 GW, could potentially offer significant opportunities for energy exports.
In addition, Latvia is actively advancing hydrogen storage technologies, further strengthening its position as a hub for innovative and sustainable energy solutions.
As part of its green-energy strategy, Latvia is becoming a prime destination for:
- Offshore wind development
- Clean energy production
- Smart mobility solutions
- Energy-storage technology
This sector offers strong opportunities for highly automated, energy-intensive companies.
Key players in Latvia’s smart energy sector:
- Latvenergo
- Augstsprieguma tīkls
- Aerones
- Naco Technologies
Information and Communications Technologies (ICT)
Latvia’s ICT ecosystem is one of the strongest in the Baltics. Some strong examples include:
- €1.4 billion in annual ICT exports
- Ability for startups to test solutions in real-life urban environments
- Leading expertise in quantum algorithms and next-generation software
Latvia is emerging as a research and development pioneer in quantum technologies, presenting an exciting opportunity for foreign investors.
Key players in Latvia’s Information and Communications Technologies sector:
- Zabbix
- Lightspace Technologies
- Tet
- SAF Tehnika
- VEFRESH
- MikroTik
- Tilde
- LMT
Technology and Engineering
The tech and engineering industry in Latvia is booming with photonics and smart materials leading the way.
This sector drives Latvia’s industrial transformation through high-value products and advanced research.
The country excels in optical fiber production and manufactures a wide range of electronic equipment, including 5G routers.
Plus, there is a strong university-industry collaboration in Latvia, particularly with Riga Technical University (RTU), which supports cutting-edge research and innovation.
Latvia is also advancing its microchip supply chain initiatives and increasing the production of high-quality silicon crystals. All this makes Latvia an attractive destination for investors in high-tech manufacturing and engineering.
Key players in Latvia’s technology and engineering sector:
- Sidrabe
- LightGuide Optics
- HansaMatrix
- EuroLCDs
- CeramOptec
- RD Alfa Microelectronics
- Baltic Scientific Instruments (BSI)
- LightSpace Technologies
- Fiber Optical Solution (FOS)
Construction and Building Materials
Latvia’s construction sector represents over 7% of GDP. The focus is on sustainable, energy-efficient, and modern building solutions.
Latvia produces concrete, cement, gypsum, ceramics, glass, and metal fittings, using local natural resources. With strong export markets in Sweden, Germany, and Lithuania, the building materials market offers opportunities for investment in innovative materials and green construction technologies.
Key players in Latvia’s construction and building materials sector:
- SCHWENK Latvija
- Alfa
- Stai
- Latvijas Propna Gze
- Fiberglass, SIA
- Consolis Latvija SIA
- Dzelzsbetons MB
- Knauf Latvia
Latvia’s Defense Innovation Ecosystem
Latvia is becoming well known for its defense innovation, supported by strong government spending and international partnerships.
Some of Latvia’s government commitments include:
- Up to 5% of GDP allocated to defense by 2026
- Top 3 NATO country for defense spending in 2025
- €1.17 billion committed for military infrastructure by 2036
- At least €100 million planned investment in drones in 2026
Key Players in Latvia’s Defense Sector:
- Edge Autonomy
- Origin Robotics
- LMT Defence
- BELSS / ERASER
- SAF Tehnika
Latvia’s defense industry is expanding, offering compelling opportunities for investors seeking stable, government-backed sectors with long-term growth potential.
Key Advantages of Investing in Latvia
Government Incentives for Investors
Latvia offers one of the strongest incentive frameworks in the Baltic region, including:
- Tax relief within Special Economic Zones (up to 80% reductions).
- Fast-track administrative processing for strategic investments.
- Research and development (R&D) incentives and support for innovation-intensive industries.
- Dedicated support for large-scale, high-impact investment projects.
Support for Large and Strategically Important Investment Projects
To help accelerate major investments, Latvia has established the Coordination Council for Large and Strategically Important Investment Projects. The Council supports investors by:
- Coordinating between ministries and public institutions
- Removing administrative obstacles
- Ensuring fast and predictable project progression
This makes Latvia an attractive destination for capital-intensive projects across manufacturing, technology, logistics, and energy. There are also a large range of banks in Latvia to work with, each offering a variety of products for investment.
The “Green Corridor” Initiative
Latvia’s Green Corridor is designed to cut bureaucratic timelines by half, providing accelerated approvals for:
- Territorial planning
- Residence permits
- Attraction of foreign specialists
This initiative directly supports international companies looking to set up operations quickly and efficiently.
Special Economic Zones (SEZ)
Latvia operates five Special Economic Zones, offering significant tax reductions. The five free zones include:
- Riga Free Port
- Ventspils Free Port
- Liepaja Special Economic Zone
- Rezekne Special Economic Zone
- Latgale Special Economic Zone
Industries operating within SEZs benefit from a lower overall tax burden (80% corporate income tax rebate and real estate tax rebate) and a simplified customs procedure.
Living and Operating a Business in Latvia
Latvia offers an excellent quality of life for investors and expatriates. Riga, Jurmala, and Liepāja are some of the most popular areas for buying property in Latvia.
From modern infrastructure and cultural heritage to a significantly lower cost of living, it is clear why so many are choosing to make Latvia their home.
Couple this with the various successful investment options to obtain Latvian citizenship and a Latvian passport and the country is a big winner for foreign investors looking to gain a second citizenship.
The GCS Global Passport Index 2025 ranks the Latvia passport 44th, placing it within the top 23% of passports globally.
For investors, Latvia offers a highly skilled, multilingual workforce supported by strong digital infrastructure. This along with lower operational and living costs compared to Western Europe makes the country an investors dream.
Plus, the business-friendly environment with transparent regulations make Latvia an ideal setting for investors and entrepreneurs looking to establish or expand their operations.
How Can Global Citizen Solutions Help You?
Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments.
We guide you from start to finish, taking you beyond your citizenship or residency by investment application.
