Support for investors

Rēzekne Special Economic Zone Authority provides the necessary consultations and services to enterprises that perform or plan to perform commercial activity within the territory of RSEZ

Incentives within the territory of RSEZ


Real estate tax relief up to 100%!

Corporate income tax relief of 80%!

Return of investment costs in tax incentives
up to 55%!
In the amount of 55% — for a small enterprise

Such enterprises that employ less than 50 people, and the annual turnover of which and/or the total balance sum does not exceed EUR 10 million (partnership enterprises and related enterprises must be taken into account as well).


In the amount of 45 % — for a medium-sized enterprise

Such enterprises that employ less than 250 people, and the annual turnover of which does not exceed EUR 50 million and/or the total balance sum does not exceed EUR 43 million (partnership enterprises and related enterprises must be taken into account as well).


In the amount of 35 % — for a large enterprise

Such enterprises that employ more than 250 people, and the annual turnover of which exceeds EUR 50 million and/or the total balance sum exceeds EUR 43 million (partnership enterprises and related enterprises must be taken into account as well).

Small
35%

Medium
45%

Large
55%

Conditions

  • Conditions:Open or Close

    a real estate is owned/being rented within the territory of RSEZ;

    commercial activity is conducted within the territory of RSEZ;

    an agreement is concluded with RSEZ Authority, and a permit for the performance of commercial activity within the territory of RSEZ has been received.

  • Additional requirements:Open or Close
Eligible costs:

Long-term assets (buildings and premises, equipment and machinery);

Intangible assets (expenses related to the acquisition of patents and acquiring of new technologies).


Investments have been redirected to the following areas:

  • establishment of a new enterprise;
  • increase of the production or service capacity of an existing enterprise;
  • diversification of the product range of an existing enterprise with products that have not been produced by the respective enterprise previously;
  • significant change of production processes at an existing enterprise.
Direct tax incentives

RSEZ enterprises have the right to receive the following tax incentives:
an 80% discount to corporate income tax;
an 80%-100% discount to real estate tax.

Taxes subject to the application of incentivesTax rate if operating in the status of RSEZ enterpriseTax rate in Latvia
Corporate income tax 3% 15%
Real estate tax 0,3 — 0 %* 1,5%

* All RSEZ enterprises receive an 80% discount to real estate tax, and the municipality is entitled to grant an additional 20% discount to the referred to tax.


Since 2013, disbursement of dividends among domestic companies in the Republic of Latvia is no longer subject to corporate income tax. Furthermore, dividends disbursed to a legal entity — a resident of another state, except for entities registered in low tax and tax-free states or territories, are exempted from tax deduction in Latvia.

 

 

Indirect tax incentives

Upon concluding a contract with RSEZ Authority, an enterprise may commence a procedure for the creation of a free economic zone in order to receive a permit for the performance of commercial activity in the free zone regime within the territory of RSEZ.


The free zone regime, which includes indirect tax incentives and special customs control measures, is applied to such enterprises.


The indirect tax incentives (0% rate on the value added tax (VAT)) is applied for supplies of goods within the free zone of the special economic zone for further exportation.

RSEZ entrepreneurship support fund

The aim of the fund is to facilitate and support entrepreneurship of RSEZ enterprises, as well as to finance development of infrastructure within the territory of RSEZ.
Investigation of territory

Support for the investigation and development programmes of the RSEZ territory

Entrepreneurship investigation

Financing for the entrepreneurship investigation, launch, support and training programmes at RSEZ

Investments

Support for investments in the infrastructure and real estate within the territory of RSEZ.

Education programmes

Support for the implementation of RSEZ education programmes.

Support for entrepreneurs

Support for RSEZ enterprises in the form of subsidies for investments is available if at least one of the following conditions is observed:

  • new work places have been created;
  • modern (environment-friendly) technologies have been introduced;
  • processing and export volume of agricultural products has been increased by using agricultural products produced in regions specifically subject to support.

Procedure RSEZ enterprise agreement and permit in less than seven weeks!

  • Step 1
    Application and other necessary documentsOpen or Close

    An enterprise shall submit an application, appending the following necessary documents:

    copies of a registration certificate and statutes of the enterprise;

    a document certifying the location of the enterprise within the territory of RSEZ (lease agreement or a Land Register certificate);

    a territorial plan of the enterprise;

    a business plan and/or a concept of the planned investment project;

    a declaration on qualification of an enterprise as a small or medium-sized enterprise (SME); and

    information and confirmations for the conclusion of an agreement on investments in the territory of RSEZ.

    If assistance is needed in the preparation of the relevant documents, please contact our consultants! RSEZ contact information

  • Step 2
    Resolution for the adoption of a decisionOpen or Close

    The administration of RSEZ Authority evaluates the submitted documents and prepares a resolution to RSEZ Supervisory Board for the adoption of a decision.

    A resolution for the adoption of a decision is prepared within a time period of two weeks after the receipt of the application and all necessary documents.

  • Step 3
    Decision on granting the status of RSEZ enterpriseOpen or Close

    RSEZ Supervisory Board shall adopt a decision on granting the status of RSEZ enterprise:

    a decision on the conclusion of an agreement on investments within the territory of RSEZ;

    a decision on the conclusion of an agreement on performance of commercial activity within the territory of RSEZ;

    a decision on the issuing of a permit for the application of direct tax incentives.

    The decision shall be adopted within a time period of two weeks after the receipt of a resolution from RSEZ administration.

  • Step 4
    Agreement on investments within the territory of RSEZOpen or Close

    An enterprise and RSEZ Authority concludes an agreement on investments within the territory of RSEZ.

    The agreement authorises the enterprise to conduct re-registration of the name of the enterprise at the Register of Enterprises of the Republic of Latvia, appending the following phrase to the name "Rēzekne Special Economic Zone...". This agreement authorises the enterprise to start making investments within the territory of RSEZ.

    The agreement is concluded within a time period of five working days after receipt of a decision of RSEZ Supervisory Board.

  • Step 5
    Re-registration of the name of the merchantOpen or Close

    The enterprise conducts re-registration of the name at the Register of Enterprises of the Republic of Latvia.

    Changes in the statutes, required for the completion of re-registration, are introduced and the phrase "Rēzekne Special Economic Zone..." is appended to the name of the enterprise.

    Re-registration is completed within a time period of one up to three days from the day documents have been received at the Register of Enterprises.

  • Step 6
    Agreement on performance of commercial activity within the territory of RSEZOpen or Close

    An enterprise and RSEZ Authority conclude an agreement on performance of commercial activity within the territory of RSEZ.

    The agreement authorises the enterprise to receive a permit for the application of direct tax incentives. The enterprise may initiate the procedure for the receipt of the above mentioned permit for the performance of commercial activity in the free zone regime and for the application of indirect tax incentives.

    The agreement is concluded within a time period of five working days after submission of the new registration certificate to RSEZ Authority.

  • Step 7
    Permit on the rights to apply tax incentivesOpen or Close

    An enterprise receives a permit on the rights to apply tax incentives prescribed by law.

    The permit is issued within a time period of one day after concluding the agreement on performance of commercial activity within the territory of RSEZ.