Emergence here of the first banks on the post-Soviet area very fast secured the country's status as a regional banking center for Russia and other CIS countries. With its entry into the European Union in 2004, Latvian financial services have become ever more successful in conquering the European market. In twenty years having become the financial center of the Northern Europe and having gained enough experience and potential for further expansion, Latvia is now ready to offer the full range of services and opportunities also to the Asian region, and especially China.
Banking and financial system.
While these opportunities are vast. The basis of all is a developed and well regulated Latvian banking system, which excels foremost with offering a comprehensive range of products and services, secondly with loyalty to non-resident customers, thirdly with cost efficiency in comparison to Switzerland or even Cyprus, and the fourth with much greater stability and reliability, compared for instance to today's South European banks. The fact that half of the Latvian banks' customers are non-residents, while in Switzerland, for example, only about 40%, speaks on Latvian friendliness to foreign customers and on customers' trust to Latvia in turn.
Latvian banking system is represented by 29 banks, including Rietumu, the flagship of the non-resident business service, the largest privately owned credit institution offering a comprehensive range of banking products for corporate customers and high-net-worth individuals in the CIS and EU countries, leader in efficiency in the banking sector, focusing on relationship banking. As well as Rietumu offers its customers all the necessary support and services in obtaining the residence permit in Latvia - more than 600 investors and their family members have obtained this status with help of the bank.
Latvia has also highly developed, well regulated and fully EU integrated financial services market. Financial and investment companies, forex and other brokerage companies, payment service providers, electronic money institutions, planning to launch the business in the region may obtain the required licence in Latvia.
Immigration policy.
In addition to the long standing and stable banking industry, in recent years Latvia has been acquiring more new advantages in the arena of international capital. Two years ago, the Government has started to actively and consistently pursue a policy of liberalization of the legislation intended to make Latvia more attractive for international business and capital.
Starting from July 2010, Latvia has introduced a liberal and affordable in comparison with other European countries program of obtaining residence permit for foreign investors on the basis of investment in real estate, contribution to the subordinated capital of credit institution, or contribution to the share capital of Latvian company. In addition to the right of visa-free stay in Latvia, residence permit allows free movement throughout the Schengen zone. Among the grounds for obtaining a residence permit, the most popular is acquisition of real estate, taking into account fairly low threshold of 72 thousand euros. Among foreign businessmen who have already obtained the residence permit there are a lot of Chinese citizens as well.
Introduction of holding regime.
Since 2013 favorable tax regime for international holding companies will become effective in Latvia, which brings the country in a line with such popular European low-tax brands as Cyprus, Netherlands and Luxembourg. Starting from 2013 income of Latvian companies from sale of shares and dividends received is exempted from tax. Furthermore the dividends payable to other countries are exempted from withholding tax. Starting from 2014 interests and royalties paid to foreign countries are not subject to withholding tax as well. Latvia charges no stamp duty on share capital payment. If foreign investor decides to close Latvian operations, the exit can be tax efficient. The network of double tax agreements, so essential in investing activities, is wide enough to provide the functionality of Latvian holding regime. There are agreements with 51 countries effective at the moment, including China, Singapore, South Korea, USA, CIS countries, almost all European countries.
Overall business environment.
Latvian tax regime is favourable for set up of real business and for trading activity as well. One of the lowest rates of corporate tax in Europe, 15% is applicable in Latvia. Company incorporation and administration process is quite simple and low-cost, company may be registered within 24 hours, incorporation can proceed without personal presence of the founders. There is essential infrastructure, availability of well qualified and trained workforce with English languages knowledge at competitive salaries. European funds are accessible for setting up and development of production and services business.
The launching ground for access to Europe.
Apart from highly developed banking and financial industry, favorable immigration and tax legislation, Latvia has a unique advantage of its geographical position at the crossroads of transport routes, being in actual fact a gateway between Europe and Asia. On top of that, it has easily approachable location and comfortable living environment. Having comprehension of business environment in the East and West, the country is able to become the launching ground for the entrance of capital and business from Asia to Europe. And to become a real financial center for China, alternative to Singapore, Hong Kong, British Virgin Islands - financial center which on the one hand has got all the advantages of old Europe, including political and economical stability and sound standing in international business community, and on the other hand is much more accessible and friendly.
Development of the financial center.
Having got independence after break-up of the USSR in the early 90s of the last century, Latvia has actively started developing export of financial services. That was facilitated by external orientation of small, yet flexible Latvian economy, favorable and liberal legislation, absence of currency control and restrictions on the capital flow. Emergence here of the first banks on the post-Soviet area very fast secured the country's status as a regional banking center for Russia and other CIS countries. With its entry into the European Union in 2004, Latvian financial services have become ever more successful in conquering the European market. In twenty years having become the financial center of the Northern Europe and having gained enough experience and potential for further expansion, Latvia is now ready to offer the full range of services and opportunities also to the Asian region, and especially China.
Banking and financial system.
While these opportunities are vast. The basis of all is a developed and well regulated Latvian banking system, which excels foremost with offering a comprehensive range of products and services, secondly with loyalty to non-resident customers, thirdly with cost efficiency in comparison to Switzerland or even Cyprus, and the fourth with much greater stability and reliability, compared for instance to today's South European banks. The fact that half of the Latvian banks' customers are non-residents, while in Switzerland, for example, only about 40%, speaks on Latvian friendliness to foreign customers and on customers' trust to Latvia in turn.
Latvian banking system is represented by 29 banks, including Rietumu, the flagship of the non-resident business service, the largest privately owned credit institution offering a comprehensive range of banking products for corporate customers and high-net-worth individuals in the CIS and EU countries, leader in efficiency in the banking sector, focusing on relationship banking. As well as Rietumu offers its customers all the necessary support and services in obtaining the residence permit in Latvia - more than 600 investors and their family members have obtained this status with help of the bank.
Latvia has also highly developed, well regulated and fully EU integrated financial services market. Financial and investment companies, forex and other brokerage companies, payment service providers, electronic money institutions, planning to launch the business in the region may obtain the required licence in Latvia.
Immigration policy.
In addition to the long standing and stable banking industry, in recent years Latvia has been acquiring more new advantages in the arena of international capital. Two years ago, the Government has started to actively and consistently pursue a policy of liberalization of the legislation intended to make Latvia more attractive for international business and capital.
Starting from July 2010, Latvia has introduced a liberal and affordable in comparison with other European countries program of obtaining residence permit for foreign investors on the basis of investment in real estate, contribution to the subordinated capital of credit institution, or contribution to the share capital of Latvian company. In addition to the right of visa-free stay in Latvia, residence permit allows free movement throughout the Schengen zone. Among the grounds for obtaining a residence permit, the most popular is acquisition of real estate, taking into account fairly low threshold of 72 thousand euros. Among foreign businessmen who have already obtained the residence permit there are a lot of Chinese citizens as well.
Introduction of holding regime.
Since 2013 favorable tax regime for international holding companies will become effective in Latvia, which brings the country in a line with such popular European low-tax brands as Cyprus, Netherlands and Luxembourg. Starting from 2013 income of Latvian companies from sale of shares and dividends received is exempted from tax. Furthermore the dividends payable to other countries are exempted from withholding tax. Starting from 2014 interests and royalties paid to foreign countries are not subject to withholding tax as well. Latvia charges no stamp duty on share capital payment. If foreign investor decides to close Latvian operations, the exit can be tax efficient. The network of double tax agreements, so essential in investing activities, is wide enough to provide the functionality of Latvian holding regime. There are agreements with 51 countries effective at the moment, including China, Singapore, South Korea, USA, CIS countries, almost all European countries.
Overall business environment.
Latvian tax regime is favourable for set up of real business and for trading activity as well. One of the lowest rates of corporate tax in Europe, 15% is applicable in Latvia. Company incorporation and administration process is quite simple and low-cost, company may be registered within 24 hours, incorporation can proceed without personal presence of the founders. There is essential infrastructure, availability of well qualified and trained workforce with English languages knowledge at competitive salaries. European funds are accessible for setting up and development of production and services business.
The launching ground for access to Europe.
Apart from highly developed banking and financial industry, favorable immigration and tax legislation, Latvia has a unique advantage of its geographical position at the crossroads of transport routes, being in actual fact a gateway between Europe and Asia. On top of that, it has easily approachable location and comfortable living environment. Having comprehension of business environment in the East and West, the country is able to become the launching ground for the entrance of capital and business from Asia to Europe. And to become a real financial center for China, alternative to Singapore, Hong Kong, British Virgin Islands - financial center which on the one hand has got all the advantages of old Europe, including political and economical stability and sound standing in international business community, and on the other hand is much more accessible and friendly.
