Latvia is one of the three Baltic States with Lithuania and Estonia. Latvia is not so popular in Western Europe but this country with a remarkable economic growth is part of the European Union since 2004 and has an attractive taxation policy. Moreover, the low cost of its workforce and its very efficient administration make this country very interesting for those willing to do business there. Finally, the recently introduced taxation, administrative and accounting simplifications by the Latvian government in response to the financial crisis are attracting many foreigners to invest in this country.
The reasons why to consider Latvia as an interesting state to do business are numerous. First of all, as Latvia is a European Union member, the owner of a Latvian offshore company will never face any difficulties in having a business relation together with another European based corporate because its Latvian company will have a European VAT identification number. In comparison a lot of offshore companies registered in more exotic jurisdictions are not always compliance with international group policies. Secondly, Latvian companies can be managed by a non-resident person and the corporate profit tax rate is only 15%. Also, all the administrative obligations related to the maintenance of your company are simplified and not so expensive in comparison with many other offshore jurisdiction. Besides, be aware of the fact that for those who would like to become a Latvian resident they will pay only a 22% income tax for incomes higher than € 15’000 and that this tax rate will be only 20% from 2015. This is another evidence proving the willingness of the Latvian government to decrease all the taxation policies in the country. Finally, the minimum share capital of your Latvian company is only € 2’800 but this can be paid over the first three years after the creation of your firm.
At FCBA Offshore Ltd, we do strongly encourage our clients to both open an offshore bank account and to incorporate an offshore company in Latvia. This country guarantees you a lot of benefits and the quality of the financial sector services is one of the best in Europe. Also, the confidentiality is high (the banking secrecy towards the European Union was guaranteed a few years ago) and the low costs of the business administration of your company makes Latvia the most affordable European offshore destination with the highest quality.