At the crossroads of northern and eastern Europe, Latvia becomes a very interesting Onshore destination following recent developments in its tax regulations. A member of the European Union since 2004, Latvia offers an extremely attractive tax system, particularly for EU companies that can take advantage of the low tax rates offered.
Latvia: an interesting choice for import / export
A society installed in Latvia is ideally positioned to become an unavoidable intermediary in trade between the West and Russia. Latvia is multilingual and multicultural. English is very developed, which facilitates communication and exchanges with partners. Latvian banks are very efficient and provide investors with all the services they need. Confidentiality is respected and accounting requirements are facilitated for foreign entrepreneurs. All of these elements make Latvia an excellent choice for onshore business, in the domain of import / export, for example
If you have a company in the European Union, set up a holding company in Latvia
Since January 2013, Latvia has suppressed the tax on income derived from subsidiaries. It has also made agreements with 51 countries, including most of the European countries, to avoid double taxation. Through these measures, Latvia becomes a particularly attractive destination to set up a holding company. In effect, if you have a company in the European Union, instead of using it to hold shares, use your Onshore company in Latvia instead. Of course you will pay corporate tax in the country in which you are exercising, but on the other hand, once the dividends have been transferred to your holding in Latvia, you will not need to pay any more tax.
The recent liberalization measures in Latvian legislation has made it an advantageous onshore destination. Do not hesitate to contact us if you wish to obtain more information and a study of your specific problematic for tax optimization.