The UK is Latvia’s eighth largest export market, with exports of goods and services between the two countries worth around £745 million.
The top UK exports to Latvia are:
- machinery
- wood
- metal
- electrical equipment
- textile
- transport vehicles
If you fancy doing business in one of the EU’s fastest growing economies, here’s everything you need to know about exporting to Latvia…
Where is Latvia?
Nestling on the Baltic coastline between Lithuania, Belarus, Russia and Estonia, Lativa is at the crossroads of northern and eastern Europe and is in the heart of the developing Baltic States market.
The country has a population of just over two million, and it’s capital, Riga, is around 1,400 miles from London, with regular flights available from the UK.
Latvia’s official language is Latvian, its currency is euros, and the dialling code is +371.
What are the pros and cons of exporting to Latvia?
Latvia is a member of the EU and the World Trade Organization (WTO), and goods manufactured in the UK are exempt from import duties.
The strengths of the Latvian market include:
- strong economy
- ease of doing business
- skilled workforce
- cost effective
- strong transport links and logistics base
Benefits for British businesses exporting to Latvia include:
- strategic location
- ideal starter market
- open economy
- sophisticated consumer market
- English widely used as business language
- business incentives and EU funding available
And there are little if any challenges to doing business in Latvia, so it should be as straightforward as doing business in any other EU country.
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How does tax work in Latvia?
The main tax rates in Latvia are:
- VAT – charged at a standard rate of 23%, with some goods charged at a lower rate of 12%.
- Corporation tax – charged at 30%
- Income tax – charged at a flat rate of 23%.
How will I be affected by customs in Latvia?
The internal EU single market allows for the free movement of goods and services without any import duties being applied, and testing is mandatory for some imported goods, especially technical and electrical equipment.
