The Political Economy of Place-Based Policies with a Focus on Special Economic Zones
SEZs in Latvia
Inese Šuļžanoka, Head of the Representative Office of the Investment Warsaw | April 23-24, 2015 and Development Agency of Latvia in Poland
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
Territory 64.6 ths.sq.km Population 2.04 million Population growth -0.2% Language Latvian Currency: euros (EUR) Highest point 311.6 m Lowest point sea level Retirement age 62y 3m
Territory 64.6 ths.sq.km Population 1,9 million Population growth -0.2% Language Latvian Currency: EUR Highest point 311.6 m Lowest point sea level Retirement age 62y 3m
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
WHAT IS LIAA?
Investment Agency
Structural Trade Funds Promotion Administrator Agency
Innovation Agency
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
LIAA FUNCTIONS – OUR 8 PREMIUM FREE SERVICES 8 1 2 Investment Information on economic Business opportunities project follow-up and market situation and investment incentives
7 3 Access to relevant government Contacts with Latvian officials business partners
6 5 4 Assistance with Cooperation with Identification of best start-up procedures municipalities property options
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
EASE OF DOING BUSINESS 2015 – LATVIA RANKED NO. 23 The International Bank for Reconstruction and Development / The World Bank
17Estonia 18Malaysia 19Taiwan, China 20Switzerland 21Austria 22United Arab Emirates 23Latvia 24Lithuainia 25Portugal 26Thailand 27Netherlands
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
TAX INCENTIVES IN SEZs Special Economic Zone (SEZ): RIGA, VENTSPILS, LIEPAJA, REZEKNE (valid until 2035)
EXAMPLE: Tax credit up to 35%- 55% Investments = 10 million EUR of total investments, Gross Profit = 1 million EUR in the form of: Real Estate Cadastral Value = 1 million EUR 80% rebate on real estate tax 80% rebate on CIT Taxation in Latvia 80% rebate on income tax for Corporate Income Tax (15%) = 150 000 EUR non-residents when receiving Real Estate Tax (1.5%) = 15 000 EUR dividends Total = 165 000 EUR
Taxation in SEZ Corporate Income Tax (3%) = 30 000 EUR Real Estate Tax (0.3%) = 3 000 EUR Totally applied = 33 000 EUR
Savings per year = 165 000 EUR – 33 000 EUR = 132 000 EUR
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
THERE ARE 4 SEZS IN LATVIA:
Riga Free Port (www.freeportofriga.lv) - mainly looking for investors, whose activity is related to sea cargo handling or high added value logistics services.
Ventspils Free Port (www.portofventspils.lv) and Liepaja Special Economic Zone (www.portofliepaja.lv) - besides companies that are engaged in sea cargo handling and logistics, also welcome export oriented manufacturing investment projects
Rezekne Special Economic Zone (www.rsez.lv) welcomes logistics and export oriented manufacturing investment projects.
As the Free Port Authority and SEZ are decision takers for leasing out State or local government land in the port territory and granting free zone regime permits, they welcome investments which conform to development strategy of ports and are related to port activity.
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
FDI Magazine’s Global Freezones of the Future 2012/13 Rankings From over 700 economic zones globally
Partners: Sponsors: Media partners: SEZS IN LATVIA, INESE ŠUĻŽANOKA The Political Economy of Place-Based Policies with a Focus on Special Economic Zones | April 23-24, 2015
Thank you and welcome to Latvia!
For more information please contact:
Investment and Development Agency of Latvia Ul. Krolowej Aldony 19, Warsaw E: [email protected] W: www.liaa.gov.lv,www.polarisprocess.com
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