According to the World Bank Group, Latvia ranks 22nd out of 189 countries in terms of the ease of doing business. The country ranks in top 20 for acquiring credit for companies; in top 30 starting a business, constructing and registering real estate, ease and efficiency of paying taxes, international trading, and enforcing contracts; and in top 50 for resolving insolvency and protecting minority investors. The weakest point of Latvian business environment is by far the ease of getting electricity for newly-built real property, for which the country ranks 65th.
Overall, it could be said that Latvia is most favourable for businesses that are not planning to engage in building new infrastructure. The ease of company formation, paying taxes and getting credits make a good combination with cheap but skilled and educated workforce and low infrastructure and facilities cost. Thanks to this, Latvia is a very popular country to start a business at, especially for entrepreneurs outside of the EU, because in total, it takes a lot less investments to open a company in Latvia than in most of the other EU-member states, while the end-result (in terms of quality) is the same. The business risks for such entrepreneurs are comparatively low, provided they take note of the possible competition on the local market.
Legal framework Since Latvia joined the European Union in 2004, it adopted the majority of the Union's laws and policies. One of the examples is the Schengen area agreement, which allows an unhindered international trade with other EU member-states (more about Latvian market access from EU here).
Latvian policies favour free-market and accordance with EU policies. Some analytics classify Latvian legislation as conservative, meaning that new policies take a long time to be accepted by the government, and they are generally treated with caution. The exception in this case are legislative initiatives proposed by the EU. Latvia strives to be an active member of the European economic area, trying to adapt its policies to European standards.
Business geography Most of the businesses are concentrated in the capital of Latvia, Riga, and the cities surrounding it. Other major cities are often devoted to a particular market sectors, e.g. the port cities of Ventspils and Liepāja provide ice-free ports (read more about the logistics in Latvia), while Daugavpils is an important railroad hub.
Cities of regional importance also play their part in the economic environment of Latvia. The city of Rezekne, for example, is where the Rezekne Free Economic Zone is located. The FEZ contributes to the development of the region, attracting companies with up to 100% real estate tax relief, corporate tax relief of 80% and the return of investment cost by tax incentives of up to 55%. Rezekne is also an important railroad hub.
The most urbanized regions of Latvia are the central, Eastern and Westerns regions. It must be noted, though, that if the central region is thoroughly urban, the East and the West are urban in the sense that the majority of population lives near major cities, with pockets of rural areas in-between. The Southern and the North-Eastern regions are mostly rural.
Market freedom Latvia is a free market economy, meaning that economic policies are aimed to lessen government intervention and prevent the creation of monopolies. According to the Wall Street Journal and the Heritage Foundation, Latvia is world's 37th most free economy. Latvia's score in this case is upheld by the high levels of fiscal, trade, investment and business freedoms, but is somewhat dragged down by corruption and government spending.
In Europe, Latvia takes up the 17th place in the rank of market freedom. This position becomes stronger and stronger each year, as Latvia takes steps to integrate into the European economic zone and be on par with major member-states.
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally divided from Asia by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting the Black and Aegean Seas.
Europe is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the west, the Mediterranean Sea to the south, and the Black Sea and connected waterways to the southeast. Yet the borders of Europe—a concept dating back to classical antiquity—are somewhat arbitrary, as the primarily physiographic term continent can incorporate cultural and political elements.
Europe is the world's second-smallest continent by surface area, covering about 10,180,000 square kilometres (3,930,000 sq mi) or 2% of the Earth's surface and about 6.8% of its land area. Of Europe's approximately 50 countries, Russia is by far the largest by both area and population, taking up 40% of the continent (although the country has territory in both Europe and Asia), while Vatican City is the smallest. Europe is the third-most populous continent after Asia and Africa, with a population of 733 million or about 11% of the world's population.
Europe has one of the best standards of living in the world and because of this many people are searching for a way to legally live there.
Economy The economy of Europe comprises more than 731 million people in 48 different countries. Like other continents, the wealth of Europe's states varies, although the poorest are well above the poorest states of other continents in terms of GDP and living standards. The difference in wealth across Europe can be seen roughly in former Cold War divide, with some countries breaching the divide (Portugal, Slovenia and the Czech Republic). Whilst most European states have GDP per capita higher than the world's average and are very highly developed (Liechtenstein, Luxembourg, Monaco, Andorra, Norway, Sweden, the Netherlands, Switzerland), some European economies, despite their position over the world's average (except for Moldova and Turkey) in the Human Development Index (Armenia, Kosovo, Macedonia, Ukraine, Azerbaijan, Georgia, Bosnia and Herzegovina, Albania, Kazakhstan) are still catching up with European leading countries.
The European countries, with a long history of trade, a free market system, and a high level of development in the previous century are generally in the north and west of the continent. They tend to be wealthier and more stable than countries congregated in Europe's south and east, even though the gap is closing, especially in Central and Eastern Europe, partly due to higher growth rates, but partly also due to the equalizing effect provided by the European Union.
Europe in 2010 had a nominal GDP of $19.920 trillion (30.2% of World GDP). Europe's largest national economy is that of Germany, which ranks fourth globally in nominal GDP, and fifth in purchasing power parity (PPP) GDP; followed by France, ranking fifth globally in nominal GDP, followed by the United Kingdom, ranking sixth globally in nominal GDP, followed by Italy, which ranks seventh globally in nominal GDP, then by Russia ranking tenth globally in nominal GDP.
Business migration in Latvia and Lithuania What are the possibilities to obtain a residency permit in Latvia or Lithuania (both are in European Union)?
IMMIGRATION IN LITHUANIA (UP TO 1 YEAR): Lithuanian Immigration Law provides ability to apply for residence permit up to 1 year through investments in business. In order to obtain temporary residence permit in Lithuania, the investment must fulfil following conditions:
a company has at least EUR 28,000 share capital; a company has genuine economical activities and pays minimum taxes; the presence of investor is necessary for business activities of a company. IMMIGRATION IN LATVIA (UP TO 5 YEARS): Latvian Immigration Law provides ability to obtain residence permit if the foreigner`s activities are related to business. Residence permit might be granted for:
Official of the company: Manager Director, Chief Executive, Board Member, Proxy, Representative of Branch, Representative of foreign merchant Shareholder of existing or newly established company: Residence permit through investment in share capital in the status of shareholder, for example, company formation and registration or acceding to existing company with significant investment Residence permit through investments in subordinated capital of credit institution Conditions for officials in the company Foreigner is entitled to residence permit if he holds a position of:
Board member (Manager Director, Chief Executive), Proxy, Representative of Branch, Representative of foreign merchant Please note! Although the residence permit is issued for 5 years, it must be registered each year. At the moment of registration, the following should be established:
Company must run actual business and generate taxes at least EUR 21,350 / year (this provision is not applicable to a new company) Conditions on investing in the equity capital of an enterprise According to Latvian Immigration Law there are two options:
The amount of investment must be at least EUR 35,000 Temporary residence permit is issued for up to 5 years though the foreigner is obliged to register the residence permit each year. Failure to do this might be basis for annulment of residence permit. For the second and following years, the foreigner shall approve his contribution to Latvian economy:
Company must run actual business and generate taxes at least EUR 40,000 / year Conditions for investing in Latvian credit institutions: the amount of financial investments must be at least EUR 280,000; the term of transaction must be at least five years without the right to terminate it prior to the term of repayment of the deposit. Conditions on investing in the equity capital of an enterprise. If you do not plan to set up business in Latvia, we advise other option - investment in real estate.
Introducing the Republic of Austria which can be described as one of the oldest and the most beautiful European countries. Population census performed in 2018 shows that the population of Austria is currently estimated at around 8.8 million people, with ethnic Austrians being the single biggest ethnic group at 91% of the population.
The Official currency of Austria is the Euro (EUR). Austria is a member state of the European Union and of the Schengen area, which provides many benefits for its passport holders and residents. Austria currently offers a legal economic citizenship program, allowing a direct path to citizenship or residence permit with no residency requirements for individuals and their families.
Single requirement is the applicants' capability to make a financial contribution to the Austrian government. However, currently, it is not the only country in the EU providing such opportunity, as Cyprus and Malta are also running similar citizenship-for-investments business immigration programs. If entering the country for a short stay, a certain type of visa will be required for the third-country nationals.
Immigration services The Immigration and Citizenship Office is responsible for immigration services in Austria, which are provided through its many municipal departments. There are several different legal documents granting its holder temporary or permanent rights of immigration in Austria.
Visa Temporary residence permit EU Blue Card Austrian Red-White-Red Card Immigration service providers Each of these documents provides certain benefits, while also having certain criteria for its acquisition. Legal companies and immigration offices may help you evaluate your personal file and provide a preliminary decision on your immigration case.
Here are three email address of companies which offer immigration services in Austria:
E-mail: residency@baltic-legal.com E-mail: europe@forsetico.com E-mail: office@law-experts.at Lawful Immigration In order to visit Austria legally, a visa-requiring foreigner needs to be in possession of a valid Schengen visa issued by either Austria or another Schengen member state. Austria's legal regulations on the immigration of non-EU citizens entering Austria set out the requirements for any individual. The legal regulation defines 'visa-free' countries, citizens of which do not require a visa for short term visits, as well as the issuance of such a visa by the state of Austria.
If you need to apply for a visa, the following Austrian public government institutions are responsible for immigration and issuing visas to the third country nationals:
the Provincial Governor (Landeshauptmann/Landeshauptfrau) the authorised Regional Administrative Authority (Bezirkshauptmannschaft) the Local Administrative Authority (Magistrat, in Vienna: MA 35)
The market entry strategy for sprinklers is to expand business to a number of foreign markets at the same time. Its key feature is simultaneous market entry while pursuing benefits that early entry offers. So it's a high-risk, rewarding approach - a successfully executed sprinkler strategy allows for profits from multiple markets while staying ahead of the competition, but a failed entry (retreat from markets) costs a lot of resources and yields little in terms of compensation .
A company enters several foreign markets at the same time and tries to establish itself, to promote the product and at the same time to build a customer base. The company gets profit and internationalization knowledge from multiple markets, which makes spreading the business even more effective since there are so many sources of resources and information. This is similar to a water sprinkler, where each individual droplet is small but numerous and spread all around, so that the entire area nearby is evenly and thoroughly watered.
Implementation The sprinkler market entry strategy is best suited for companies that manufacture short lifecycle products or whose products are in the launch or growth phase. Usually the sprinkler strategy is complemented by the price skimming technique when the initial price is quite high and lowered over time. This makes it possible to get as many profits as possible in a relatively short time, taking into account the profits of all regional branches.
Another thing to consider when entering the sprinkler system market is process standardization. Since it is almost impossible to customize and adapt them for each individual market, standardization plays an important role in keeping the business expansion process coherent and the incoming data comparable. Of course, this does not mean that everything should be the same - but it is still important to pay attention to cultural differences and their influence on advertising and branding. For example, in 2016, hot dog companies in Malaysia were forced to rename their products after the word "dog" because this animal is considered "unclean" in Islam, one of the major religions in the region. If the sprinkler strategy does not adapt to such specifics, expansion into a particular market can stall.
Advantages The sprinkler market entry strategy is an effective method of outrunning competition and utilizing the first-mover or technological advantage. While the competitors enter just one or two markets at a time, the business in question raises the brand-awareness in many more markets. Even if the competitors also enter these markets, they will be seen as followers, rather than as innovators. The business that uses the sprinkler market entry strategy has more time to analyze the market and make adjustments. An early simultaneous entry also means more possibilities for registering intellectual property, which hinders the later advance of competitors even more.
Another advantage is the amount of income from a large number of entered market, especially if the business expansion was successful in the majority of the markets. Besides just receiving profits and using them to develop the company, this also gives another advantage - the profits from successfully entered markets can be allocated to less successful regional branches, thus minimizing the risk of withdrawal across all the markets. This makes the sprinkler strategy advantageous in the long-run.
Disadvantages The sprinkler market entry relies on a big number of markets entered simultaneously, which, in turn, requires a significant amount of initial investments. This includes both finances and staff, as well as the general business expansion planning. Depending on the markets and other circumstances, production facilities, offices, logistics networks and bank accounts will need to be established in numerous markets at once, putting additional strain on resources.
Another disadvantage of the sprinkler strategy is the high risk of entering a number of markets at once. Although a failure and possible withdrawal in one can be compensated by the profits from other markets, if the whole business expansion is unsuccessful, the losses are rather serious (due to big initial investments, see the previous disadvantage).
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Estonia continues to be a country with the lowest state debt in the euro area. In the first quarter of 2012 Estonia's state debt has grown, just like the euro area average, but despite this fact it is still the lowest state debt comparing with other Eurozone countries.
The average Eurozone debt burden was 88.2% of GDP in the first quarter, the highest since the adoption of euro. At the same time, Estonia's state debt constituted only 6.6% of the GDP, which shows an increase of 0.1 percentage points as compared to the first quarter of 2011 and 0.6 percentage points as compared to the fourth quarter of 2011.
Acquiring a residence permit based on an investment in a Latvian bank is often a better option for those who want to obtain a residence permit while ensuring a stable investment with a guaranteed return, rather than exposing themselves to the potential variable returns that are sometimes seen in investing are real estate. Statistics show that this type of investment is a less common method of obtaining a residency permit compared to buying real estate in general. However, there are some peculiarities of the system available in Latvia that make this option the best solution for some investors.
Investment in a Latvian bank To apply for a residence permit in Latvia on the basis of a financial investment in a bank, you must deposit at least EUR 280,000 in subordinated capital in a bank and pay a government fee of EUR 25,000 to the government. Subordinated capital is funds that the bank borrows from a customer for a minimum of 5 years (like a corporate bond – but if the corporation is a bank). If you choose this option, you should know that the term of your residence permit corresponds to the term of the subordinated capital (duration of the bond). The banks usually assume all risks. It's also worth noting that just like any other bond, the bank will pay you interest, so this can be a good, low-risk way to ensure a return on your investment and grow your capital over time, while also getting your residency status. The interest rate is agreed upfront, and therefore this option effectively guarantees the size of your investment's return, while it may not offer you the same level of liquidity that you see with a property purchase - where you have the option to sell at any time.
Last year only 208 investors applied for a residence permit based on investing in Latvian banks. Since 2010, the total investment sum is estimated at around 75.7 million euros.
Choosing between the available options can be difficult and requires careful consideration of your needs and circumstances. We can help you choose the most suitable solution for your needs, by advising you and making all the necessary calculations. We can also provide full legal support for every other part of the incorporation process to ensure your investment and stay is a smooth and hassle free experience.
Baltic Legal offers a wide range of services and support in establishing and promoting your business in Latvia and other Baltic countries. If you are considering opening a restaurant, bistro, cafe, bar or any other venue in Latvia, we will discuss aspects such as real estate, business registration and company formation, permits and licenses, recruitment, creating a potential client base and tax regulations.
Today, Latvia is in many ways a growing country with great business potential due to its advantageous geographic location. Opening a restaurant in Latvia is a good choice and a potentially lucrative venture. However, it is important to be fully informed about all relevant factors and risks.
Hundreds of thousands of tourists visit the country every year and they love to have a good time - especially in restaurants, bars and cafes, just like the locals. It is therefore not surprising that the restaurant business is currently one of the most popular and profitable sectors of the Latvian economy.
Commercial real estate and business premises Finding space is the first step in starting your restaurant. In recent years there has been an increase in construction activity across the country, so finding the right property shouldn't be too difficult. First you need to decide what type of property you need and where. Next you need to buy or rent the right premises to support the success of your business in Latvia.
This process can take a few months if you do it yourself, but we are here to help and save your time and resources. Our team of specialists is ready to help you choose the best location for a restaurant across the country.
We will help you choose a property to rent or buy based on your goals. To make sure you choose the best option and all the formalities are taken care of, contact us for a consultation!
Business registration and company formation If you start a business, you need to register your business. We can provide you with a ready company or start a new one for you according to your business plan. Depending on the case, this can take up to a few weeks. Contact us so you don't have to worry about the paperwork and possible mistakes when drafting documents - we have the knowledge to do it correctly and at a high level, saving you time.
You must also open one or more bank accounts in Latvia. Baltic Legal can help you open a bank account in over twenty jurisdictions, making it easy to avoid challenging language barriers or bureaucratic deadlocks.
What we can do for you:
We provide high quality professional company registration services and an individual approach to your needs while promising loyalty, privacy and fast service; We provide efficient service and take so much burden off your shoulders; We will help you solve complex problems and provide you with fast, high-quality legal, accounting and business management services.
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Baltic Legal offers a wide range of services and support in establishing and promoting your business in Latvia and other Baltic countries. If you are considering opening a restaurant, bistro, cafe, bar or any other venue in Latvia, we will discuss aspects such as real estate, business registration and company formation, permits and licenses, recruitment, creating a potential client base and tax regulations. Today, Latvia is in many ways a growing country with great business potential due to its advantageous geographic location. Opening a restaurant in Latvia is a good choice and a potentially lucrative venture. However, it is important to be fully informed about all relevant factors and risks.
Hundreds of thousands of tourists visit the country every year and they love to have a good time - especially in restaurants, bars and cafes, just like the locals. It is therefore not surprising that the restaurant business is currently one of the most popular and profitable sectors of the Latvian economy.
Commercial real estate and business premises Finding space is the first step in starting your restaurant. In recent years there has been an increase in construction activity across the country, so finding the right property shouldn't be too difficult. First you need to decide what type of property you need and where. Next you need to buy or rent the right premises to support the success of your business in Latvia.
This process can take a few months if you do it yourself, but we are here to help and save your time and resources. Our team of specialists is ready to help you choose the best location for a restaurant across the country.
We will help you choose a property to rent or buy based on your goals. To make sure you choose the best option and all the formalities are taken care of, contact us for a consultation!
Business registration and company formation If you start a business, you need to register your business. We can provide you with a ready company or start a new one for you according to your business plan. Depending on the case, this can take up to a few weeks. Contact us so you don't have to worry about the paperwork and possible mistakes when drafting documents - we have the knowledge to do it correctly and at a high level, saving you time.
You must also open one or more bank accounts in Latvia. Baltic Legal can help you open a bank account in over twenty jurisdictions, making it easy to avoid challenging language barriers or bureaucratic deadlocks.
What we can do for you:
We provide high quality professional company registration services and an individual approach to your needs while promising loyalty, privacy and fast service; We provide efficient service and take so much burden off your shoulders; We will help you solve complex issues and provide you with swift, high-quality legal, accounting and business management services.
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Official Name: Kingdom of Denmark Capital: Copenhagen Total area: 42 915 km2 GDP per capita: $37,657 Native Language: Danish Government: Unitary parliamentary Constitutional monarchy Population: 5,580,413 Major Religion: Lutheran Church of Denmark Monetary Unit: Danish krone (DKK)
Denmark consists of the Jutland (Jylland) peninsula and about 400 named islands. Of these, 82 are inhabited, the largest being Funen (Funen) and Zealand (Sjælland).
Denmark has a large fishing industry and a sizeable merchant fleet. The main areas of activity in manufacturing include food, chemicals, machinery, metal products, electrical and transportation equipment, beer, and paper and wood products. Tourism is also an important industry.
Between the 8th and 11th centuries, the Danes were known as Vikings. Along with the Norwegians and Swedes, they colonized, plundered and traded in all parts of Europe. Today's Danes are proud of their country's welfare state, with widespread social protection for all.
Denmark is a constitutional monarchy, governed today under the 1953 constitution. The unicameral Parliament or Folketing has 179 elected members.
The best-known Danes include the writer Hans Christian Andersen, famous for his fairy tales, the author Karen Blixen and the designer Arne Jacobsen. Danish cinema has gained international recognition primarily through the experimental film director Lars von Trier.
Danish cuisine specialties include smørrebrød (open sandwiches), potatoes boiled or browned with sugar, boiled red cabbage, roast pork and roast duck.
Health & Wellbeing Denmark enjoys one of the highest standards of living in the world. Excellent health and social system.
Economy & Jobs Agriculture, fishing, mining, manufacturing, energy, service industries and transportation.
Main attraction Copenhagen, Egeskov Castle, Legoland amusement park and Ribe town (oldest in Scandinavia).
Business Denmark has a modern, prosperous and developed mixed market economy, ranking 21st in the world in terms of GDP (PPP) per capita and 10th in terms of nominal GDP per capita. A liberalization of import duties in 1797 marked the end of mercantilism, and further liberalization in the 19th and early 20th centuries established the Danish liberal tradition in international trade, which would not be broken until the 1930s. Property rights enjoy strong protection. Denmark's economy stands out as one of the freest in the Index of Economic Freedom and Economic Freedom in the World. The economy has a high degree of international trade and Denmark is known as a champion of free trade in the European Union. According to the 2008 World Economic Forum report, IMD and The Economist, Denmark is one of the most competitive economies in the world.
Before founding a company, it is essential to examine and select the legally and economically most suitable form of company. This choice affects not only the amount of equity required, but also the legal form of the company and other company-related issues.
There are several legal forms for doing business in Latvia. Entrepreneurs usually register the following types of companies:
Limited Liability Company (SIA) Public limited company (AS) branch Representative office of the foreign merchant According to Baltic Legal's experience, the most popular company form is a limited liability company (SIA). Baltic Legal assists in establishing a company or opening a branch or representative office in Latvia. Our lawyers support you in the preparation of incorporation documents and represent your interests in dealings with the relevant state authorities.
Limited Liability Company (SIA) Equity – when establishing a limited liability company, the minimum equity is 2820 euros. The equity contribution can take the form of a cash contribution or a contribution in kind.
Founders – Founders of a limited liability company can be one or more individuals, which can be both natural and legal persons. The founder may or may not be a resident of the Republic of Latvia.
Status – a limited liability company is considered a legal entity.
Liability – The company is liable for its obligations to the extent of its entire assets. A founder or partner is not liable for the obligations of the limited liability company, just as the limited company is not liable for the obligations of the founder or partner.
Governing body – the decision-making body of a limited liability company is the board of directors and, if necessary, the council. The Board of Directors consists of one or more natural persons who may or may not be residents of the Republic of Latvia.
The process of company formation and registration is not considered complex. Registration takes only four business days from the moment all incorporation documents are prepared and submitted to the Commercial Register of the Republic of Latvia. The registration time may be shortened by up to two business days in response to such a request.
Area 65,200 km² Total length of the national border: 1,732 km. Capital: Vilnius Length of the Baltic Sea coast: 90.66 km. Population: 3,596,617 (July 2005) Borders: Latvia, Belarus, Poland, Russia
Languages Official language: Lithuanian Lithuanian is closely related to Latvian. More than 80% of the country's 3.8 million inhabitants speak Lithuanian as their first language. The Lithuanian language has two dialects: Aukštaičių (Aukštaitian, highland Lithuanian), Žemaičių/Žemaitiu (Samogitian, lowland Lithuanian).
Geography Lithuania lies on the edge of the East European Plain. Its landscape was shaped by the glaciers of the last Ice Age. Lithuania's terrain is an alternation of temperate lowlands and highlands. The highest elevation is 297 meters above sea level and is located in the eastern part of the republic and is separated from the highlands of the western Zemaiciai region by the very fertile plains of the southwestern and central regions. The landscape is punctuated by 2,833 lakes larger than one hectare and another 1,600 ponds smaller than one hectare. Most of the lakes are in the east of the country. Lithuania also has 758 rivers longer than ten kilometers. The largest river is the Nemunas (total length 917 km), which has its source in Belarus. The other major waterways are the Neris (510 km), Venta (346 km) and Sesupe (298 km) rivers. However, only 600 kilometers of Lithuanian rivers are navigable.
Nature Lithuania's countryside is pleasing to the eye but modest in resources. The area is rich in limestone, clay, quartz sand, gypsum sand and dolomite suitable for the production of high quality cement, glass and ceramics. Oil was discovered in Lithuania in the 1950s, but few wells are operational in the west of the country. Lithuania has five national parks (Aukštaitijos, Dzūkijos, Žemaitijos, Kuršių nerijos and Trakų) and 30 regional parks full of primeval forests and pristine wetlands inhabited by protected wildlife and rare birds.
The European Union Blue Card Directive applies to highly qualified non-EU citizens wishing to be admitted to the territory of a Member State of the European Union (European Union Common Immigration Policy) for more than three years, with the exception of Denmark, Ireland and months in the UK for employment and residence purposes. The EU Blue Card also enables authorized persons to bring their close family members with them.
The "Blue Card" can be obtained in a one-way process, with which non-EU citizens can apply for a work permit, which is then valid for up to two years and can then be renewed.
The Blue Card confers a range of rights, including favorable rules on family reunification. The proposal also encourages geographical mobility within the EU between different Member States for those who have been granted a blue card.
requirements In order to be admitted to the EU, the applicant must present:
an employment contract or a binding job offer with a salary of at least 1.5 times the average gross annual salary paid in the Member State; a valid travel document and, in certain cases, a valid residence permit or long-term national visa; valid health insurance; in the case of regulated professions, documents proving that you meet the legal requirements and, in the case of non-regulated professions, documents proving that you have the relevant higher professional qualification. In addition, the applicant must not pose a threat to public policy from the point of view of the Member State in which he is seeking authorisation.
The unemployment rate in Estonia fell to 10.9 percent in the third quarter, down sharply from 13.3 percent in the previous quarter. It is the latest indicator of a drastic turn for the better in the economy. That number meant 77,000 Estonians were unemployed and marked a sharp drop in the unemployment rate from 15.5 percent in the third quarter of 2010, according to official data released by Statistics Estonia on Monday.
The data showed that 44,000 of the total unemployed have been looking for a job for a year or more, while about 28,000 of them have been looking for a job for at least two years. Statistics Estonia also saw a decrease in the number of unemployed men since 2010, when men accounted for nearly two-thirds of the unemployed, at a time when unemployment peaked at nearly 20 percent in the country hit hard by the global crisis.
"Since then, male unemployment began to decrease faster than female unemployment, and in the third quarter of this year there were even fewer unemployed men than unemployed women," it said. "The unemployment rate for men was 10.6 percent in the third quarter and that for women was 11.3 percent," she added. The country of 1.3 million people, which joined the European Union in 2004 and the eurozone in January, emerged from an economic contraction of 14.1 percent in 2009 - one of the deepest recessions in the world. The Estonian authorities have forecast growth of 7.0 percent for 2011.
The Baltic Sea region is the fastest growing business region in Europe. The trade flow among the states in this region has been steadily increasing year by year. The taxation system of Estonia is considered one of the most liberal taxation systems in the world. In 2000, Estonia implemented a comprehensive tax reform with an aim to create the simplest, most comprehensible and most convenient taxation system possible. The main advantage of Estonia is the low-tax system that can be described as a simple system with no hidden surprises and that was basically established to promote business and increase profits.
The taxation system of Estonia includes state taxes stipulated by the tax legislation and local taxes imposed by local governments or city councils in the respective territories according to laws and regulations.
The state taxes are the following:
excise duty; income taxes; gambling tax; value added tax; land tax; social tax; customs tariffs; heavy goods vehicle tax. Corporate income tax As a result of reforms, the main benefit of entrepreneurs was the exemption from the corporate income tax in the event of reinvesting the profits. Thus, Estonian enterprises must pay the income tax only on their distributed profits, namely, dividends. The corporate income tax (tax on distributed profits) is 21 % of gross dividends.
This taxation system is conceptually different from the classic income tax system, because the tax is levied on distributed profits (also hidden distributed profits) instead of company profits.
Value added tax (VAT) The value added tax payers are enterprises the taxable supply (except for import) of which does not exceed EUR 16,000 during a calendar year. The tax is levied on transactions with goods and services in Estonia and on the import of goods. The tax rate is 20 % of the taxable value.
The taxable period is one calendar month, and the value added tax must be paid into the state budget by the twentieth day of each month. The tax is fully paid into the state budget.
The registration of enterprises is carried out by the Tax and Customs Board also administering the VAT levied on domestic goods and services.
Personal income tax In 2010, the tax rate is 21 % of taxable income, and residents must pay the tax on their income received both inside and outside Estonia. The taxable income includes the income from employment (salary, wage, bonus and other remunerations), business income, interest, royalties, rent, capital gains, maintenance support, pensions, scholarships (except for scholarships paid from the state budget or pursuant to law).
Social tax This tax is imposed to ensure state pensions and health insurance. It is paid by legal persons, natural persons and non-residents with regular income. The tax rate is 33 % of the taxable amount. The tax must be calculated monthly, and a corresponding amount of money must be transferred no later than by the tenth day of each month.
Since 1 January 1999 the social tax payments have been personalised, and they form pension funds which will be considered in each specific case. The tax is accumulated in a special account of health and pension insurance funds within the state budget.
Excise duty In Estonia, the excise duty is levied on tobacco, alcohol, fuel, packaging and vehicles.
The excise duty helps to control the amount of a specific product or provision of a specific service seeking to adjust the consumption of domestically sold goods.
Like value added tax revenues, also excise duty revenues are affected by changes in domestic demand, increase in imports of excise goods, as well as changes in excise duty rates.
Official Name: Kingdom of Denmark Capital: Copenhagen Total area: 42 915 km2 GDP per capita: $37,657 Native Language: Danish Government: Unitary parliamentary Constitutional monarchy Population: 5,580,413 Major Religion: Lutheran Church of Denmark Monetary Unit: Danish krone (DKK)
Denmark consists of the Jutland (Jylland) peninsula and about 400 named islands. Of these, 82 are inhabited, the largest of them are Fyn (Fyn) and Zeeland (Selland).
Denmark has a developed fishing industry and a significant merchant fleet. The main activities of the manufacturing sector include food, chemicals, machinery, metal products, electronic and transport equipment, beer, paper and wood products. Tourism is also an important economic activity.
Between the 8th and 11th centuries, the Danes were known as the Vikings. Together with the Norwegians and Swedes, they colonized, raided and traded in all parts of Europe. Modern Danes are proud of their country's welfare state, with its widespread social protection for all.
Denmark is a constitutional monarchy, ruling today under the 1953 constitution. The unicameral parliament or Folketing consists of 179 elected members.
Among the most famous Danes are the writer Hans Christian Andersen, famous for his fairy tales, the writer Karen Blixen and the designer Arne Jacobsen. Danish cinema has received international recognition largely thanks to the experimental director Lars von Trier.
Danish specialties include smørrebrød (open sandwiches), boiled or sugar-fried potatoes, boiled red cabbage, roast pork, and roast duck.
Health and Welfare Denmark has one of the highest standards of living in the world. Outstanding health and welfare system.
Economy and work Agriculture, fisheries, mining, manufacturing, energy, services and transport.
Main Attractions Copenhagen, Egeskov Castle, Legoland theme park and the city of Ribe (the oldest in Scandinavia).
Economy Denmark has a modern, prosperous and developed mixed market economy, ranking 21st in the world in terms of GDP (PPP) per capita and 10th in terms of nominal GDP per capita. The liberalization of import tariffs in 1797 marked the end of mercantilism, and further liberalization in the 19th and early 20th centuries established a Danish liberal tradition in international trade that was only broken by the 1930s. Property rights are securely protected. Denmark's economy stands out as one of the freest in the Economic Freedom Index and Economic Freedom of the World. The economy has a high level of international trade and Denmark is known as a supporter of free trade in the European Union. According to a 2008 World Economic Forum report, IMD and The Economist, Denmark is one of the world's most competitive economies.
Denmark has the freest labor market in Europe, according to the World Bank. Employers can hire and fire whenever they want (flexibility), and unemployment benefits are very high between jobs (security). The World Bank ranks Denmark as the easiest place in Europe to do business. Setting up a business can be done in a matter of hours and at a very low cost. Denmark has a competitive corporate income tax rate of 25% and a special time-limited tax regime for expatriates. The Danish tax system is broad, with 25% VAT, in addition to excises, income taxes and other fees. The total tax burden (the sum of all taxes as a percentage of GDP) is estimated at 46% in 2011.
Official Name: Federal Republic of Germany Capital: Berlin Total area: 357 021 km2 GDP per capita: $39,028 Native Language: German Government: Federal parliamentary constitutional republic Population: 80,399,300 Major Religion: Roman Catholicism, Lutheran Monetary Unit: Euro (EUR)
Germany, officially the Federal Republic of Germany, is a federal parliamentary republic in west-central Europe. The country consists of 16 federal states, the capital and largest city is Berlin. Germany covers an area of 357,021 square kilometers (137,847 sq mi) and has a largely temperate seasonal climate. With 80.3 million inhabitants, it is the most populous member state of the European Union. Germany is the greatest economic and political power on the European continent and historically a leader in many theoretical and technical areas.
Germany has the largest population of all EU countries. Its territory stretches from the North and Baltic Seas in the north to the Alps in the south and is crossed by some of Europe's most important rivers such as the Rhine, Danube and Elbe.
Germany is a federal republic. The legislatures at the national level are the Bundestag, whose members are elected by popular vote every four years, and the Bundesrat, which consists of 69 representatives from the 16 federal states.
After the Second World War, Germany was divided into the democratic west and the communist east (German Democratic Republic). The Berlin Wall became the symbol of this division. It fell in 1989 and Germany was reunited a year later.
German is the most widespread first language in the European Union. Germany is the third largest economy in the world and produces automobiles, precision engineering products, electronic and communication equipment, chemical and pharmaceutical products and much more. Its companies have invested heavily in the Central and Eastern European countries that joined the EU in 2004.
As the birthplace of Johann Sebastian Bach, Ludwig van Beethoven, Johannes Brahms and Richard Wagner, among others, Germany's gift to European classical music is important. In thought and word, Germany's vast legacy encompasses the works of Luther, Goethe, Schiller, Nietzsche, Kant, Brecht and Thomas Mann.
Germany is the second largest hop producer in the world and the country is known for its quality beers. Wine is produced in the Moselle and Rhine valleys.
Health & Welfare Germany has one of the most comprehensive and generous systems in the world. It includes health, old age, disability, unemployment insurance, child support, public housing and veterans aid.
Economy & Jobs Manufacturing, industry, mining, farming, forestry, fishing, energy, banking, and tourism.
Main Attractions Berlin, Frankfurt city, Lubeck medieval town, Munich city, Rhine Valley, and Weimar pilgrimage site.
Economy Germany is the 12th richest country in the world in terms of GDP per capita, has a well-developed social market economy, and a high standard of living. Until the 1980s, many of Germany's largest industry firms were nationalised; in recent years, however, privatisation has reduced state holdings to a level comparable to other European economies. Labour movements are particularly strong in Germany and have large influence on labour politics. Next to a highly developed industry, international tourism is the most important part of the national economy. Mariahilf shopping avenue in Vienna.
Germany has historically been the main trading partner of Germany, making it vulnerable to rapid changes in the German economy. Since Germany became a member state of the European Union it has gained closer ties to other EU economies, reducing its economic dependence on Germany. In addition, membership in the EU has drawn an influx of foreign investors attracted by Germany's access to the single European market and proximity to the aspiring economies of the European Union. Growth in GDP accelerated in recent years and reached 3.3% in 2006.
Germany indicated on 16 Nov 2010 that it would withhold the December installment of its contribution to the EU bailout of Greece citing material worsening of the Greek debt situation and apparent inability of Greece to collect the level of tax receipts it had previously promised.
Since the fall of communism, Germanyn companies have been quite active players and consolidators in Eastern Europe. Between 1995 and 2010, 4'868 mergers & acquisitions with a total known value of 163 bil. EUR with the involvement of Germanyn firms have been announced. The largest transactions with involvement of Germanyn companies have been: the acquisition of Bank Germany by Bayerische Hypo- und Vereinsbank for 7.8 bil. EUR in 2000, the acquisition of Porsche Holding Salzburg by Volkswagen Group for 3.6 bil. EUR in 2009, and the acquisition of Banca Comercială Română by Erste Group for 3.7 bil. EUR in 2005.
The Latvian Investment and Development Agency, in cooperation with the European Social Fund, has announced a call to support job creation. Expected funds are expected to reach LVL 12,000 for each job created, capped at LVL 1.5 million for a project.
The Call for Activity is scheduled to start on November 1st, 2012 and will last until March 23rd, 2013. The activity aims to create new jobs. Applicants can be companies registered in Latvia that plan to create at least 50 full-time jobs and plan to maintain these jobs for at least three to five years after the project realization. The compensated expenses are: monthly salary up to LVL 500 net, expenses for training new employees and value added tax (VAT) of these expenses. The maximum financial resources available cover 50% of expenditure on salaries and general training and 25% of expenditure on special training. The bidding starts on November 1st and runs until March 28th, 2013. The project can be started immediately after approval and there is no need to wait for the closing date of the bidding process.
Currently, the tax rates in Latvia are as follows: income tax 25%; State social contribution 24.09%; Corporate income tax is 15%, VAT is 21% and others. The system of company registration is simplified and does not contain significant obstacles for foreigners.
Official Name: Republic of Latvia Capital: Riga Total area: 65 000 km2 GDP per capita: $18,100 Native Language: Latvian Government: Parliamentary Democracy Population: 1,911,108 Major Religion: Evangelical Lutheranism Monetary Unit: Euro (EUR) Latvia regained its independence from the Soviet Union in 1991. Located on the Baltic coast, Latvia is a flat country with large forests that provide timber for the construction and paper industries. The surrounding area is rich in wildlife. Latvia also produces consumer goods, textiles and machine tools. The country attracts tourists from all over Europe.
Ethnically, the population is 59% Latvian and 29% Russian, and more than a third live in the capital, Riga. Riga was founded in 1201 and is the largest city in the three Baltic States with a population of 730,000. At 43 meters, the Statue of Liberty is one of the tallest monuments in Europe.
Latvia's 100-seat unicameral parliament, the Saeima, is elected every four years by direct popular vote. The President is also elected by Parliament every four years.
The best-known Latvians include the expressionist painter Mark Rothko and the contemporary composer Peteris Vasks.
Characteristic specialties of Latvian cuisine are speķapīrādziņi (bacon pies) and a refreshing, cold sour cream soup.
Health & Wellbeing Social security and benefit programs are being developed, including free provider choice, free medicines and prescriptions, and inclusive health insurance for all citizens.
Economy & Jobs Service, tourism, shipping, trade and agriculture.
Main attraction Riga, Bauska Castle, the cities of Jurmala, the historical town of Kuldiga and the medieval castles of Sigulda.
Economy Latvia is a small, open economy, with exports accounting for almost a third of GDP. Because of its geographic location, transit services are highly developed, along with timber and wood processing, agriculture and food products, and manufacturing of machinery and electronics. Corruption remains a barrier to attracting foreign direct investment, and Latvia's low birth rate and declining population pose major challenges to its long-term economic vitality. The Latvian economy recorded GDP growth of more than 10% per year in 2006/07, but slipped into a severe recession in 2008 due to an unsustainable current account deficit and high levels of debt amid the ailing global economy. Triggered by the collapse of the second largest bank, GDP collapsed by 18% in 2009. The economy has not returned to pre-crisis levels, despite strong growth, particularly in the export sector in 2011-12. The IMF, the EU and other international donors provided significant financial support to Latvia under an agreement to defend the currency's peg to the euro in exchange for the government's commitment to tough austerity measures. The IMF/EU program was successfully completed in December 2011. The government of Prime Minister Valdis DOMBROVSKIS has maintained its commitment to fiscal prudence, reducing the budget deficit to 2.7% of GDP in 2012 from 7.7% of GDP in 2010. The majority of companies, banks, and real estate have been privatized, although the state still holds significant stakes in some large companies, including 99.8% of the Latvian national airline. Latvia officially joined the World Trade Organization in February 1999 and the EU in May 2004. Latvia intends to join the eurozone in 2014.
In Estonia, most goods and services are subject to value added tax (VAT). The VAT registration threshold for local entrepreneurs is EUR 16,000 per calendar year. The time required to complete the registration after submission of all documents is 3 business days; Foreign entrepreneurs must complete their VAT registration before conducting taxable transactions.
The expansion of the market share in Estonia enables further expansion in the direction of the Scandinavian countries. The tax system of Estonia is favorable for business development as refinanced and retained profits are not subject to corporate income tax.
Most companies in Estonia are limited liability companies (osaühing – OÜ). In general, there are 5 types of companies in Estonia:
Limited liability companies (osaühing – OÜ); joint-stock companies (Aktsiaselts – AS); general partnership (täisühing – TÜ); limited partnerships (usaldusühing – UÜ); Sole Proprietorship (füüsilisest isikust ettevõtja – FIE). Foreign entrepreneurs must register as VAT payers in the following cases:
if a trader does not conduct regular business in Estonia and pays taxes in another country; and if a merchant also operates in Estonia, among others, but is not registered as a VAT payer; if a trader is registered as a VAT payer in another EU Member State and conducts distance sales (except for distance selling of excise goods) to a person in Estonia who is not registered as a VAT payer, and the taxable value of the supply of distance sales calculated from the beginning of a calendar year exceeds 35,000 euros; when a trader registered as a VAT payer in another EU Member State sells excise goods at a distance to a natural person in Estonia for personal use. If a trader registered as a VAT payer in another EU Member State is engaged in distance selling of goods in Estonia (except for distance selling of excise goods), he can register as a VAT payer on a voluntary basis. It should be noted that the tax authority has the right to remove a taxpayer from the register if that taxpayer has not submitted a VAT return for the last six months.
12.06.2024 17:39
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