Riga, Latvia's dynamic capital, offers fertile ground for entrepreneurs looking to diversify their investments. Find out how to make the most of the growth sectors and unique advantages of the Latvian SIA to maximise your business opportunities.
Why Invest in Riga?
Riga is a growing capital, with its economy expected to grow 2.0 to 2.8% in 2026. The city stands out for its political stability, its membership of the EU, the eurozone and NATO, and its strategic geographic position in Northern Europe. These factors make it a credible destination for international entrepreneurs.
Compared with other major European capitals such as Paris and London, Riga offers costs 25 to 50% lower than Western Europe. This includes lower costs for commercial property, labour and professional services.
| Criterion | Riga | Paris | London |
|---|---|---|---|
| Property cost (€/m²) | 1500 | 10000 | 15000 |
| Average labour cost (€/hour) | 15 | 35 | 40 |
There are also plenty of advantages for entrepreneurs, thanks in particular to an attractive tax policy and a simplified legal framework.
Growth Sectors in Riga for International Entrepreneurs
Riga stands out for several booming economic sectors, offering unique opportunities for foreign investors.
- Tech: Latvia's startup ecosystem has around 500 to 570 active startups, growing 11% over 2025-2026, driven in particular by fintech, SaaS and deeptech.
- Real estate in Riga: The property market offers plenty of investment opportunities, both residential and commercial.
- Fintech: A fast-growing sector, with regulations favourable to new financial technologies and a significant share of the country's investment.
- Logistics: Thanks to its geographic position, Riga is a strategic logistics hub for Eastern and Northern Europe.
Advantages of the Latvian SIA for Investors
Setting up a Latvian SIA offers investors several advantages, particularly in terms of taxation and the legal framework.
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The SIA offers favourable taxation: 0% corporate tax as long as profits are reinvested, against around 25% once dividends are distributed. A 2026 alternative regime (15% + 6%) exists for SIAs owned exclusively by individuals.
Compared with setting up a company in Paris or London, the Latvian SIA stands out for its simplified procedures and lower costs. This lets entrepreneurs focus their resources on growing their business rather than on administrative formalities.
Special Economic Zones and Investment Support
Riga is home to several special economic zones that offer tax advantages and investment incentives for foreign companies.
- Special economic zones offer tax reductions of up to 80% for eligible companies, as well as advantages on customs duties and VAT.
- Subsidies and reduced-rate loans are available for projects that support local economic development.
These measures are designed to attract international investors and boost the region's economic growth.
Practical Tips for Investing in Riga
To make your investment in Riga a success, it's best to know the local market well and surround yourself with reliable partners on the ground.
As an illustrative example, take an entrepreneur who recently invested in a tech startup in Riga: by understanding the market well and working with local partners, they were able to grow their business successfully.
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Avoid common mistakes such as underestimating operating costs or overlooking cultural differences in the business environment.
To maximise your chances of success, lean on local experts who know the ins and outs of the Latvian market.