Holding regime

Setting a strategy

Since the Income Tax Law of Latvia was amended in 2013, Latvia has gained significant interest among foreign investors due to the establishment of holding regime.

A holding company is a group consisting of parent entity and its subsidiaries which is often established for reasons on business expansion. The idea of a holding company is to simplify the financial management and coporate processes within the group. One of the most common usage of a holding company is where the parent (i.e. a holding company) owns a certain trademark and in the course of business operations subsidiaries are subject to royalty payments for the use of the trademark.

Holding regime has become very popular due to the fact that a number of payments are exempted from income tax for Latvian holding companies such as:

  • Royalties

  • Dividends, also payments to foreign companies

  • Interests

  • Income from the share sales

Holding company registration doesn’t differ from a general procedure of the establishment of private entities in Latvia. The minimum share capital contribution is EUR 2846. Also there are no restrictions on citizenship (resident or non-resident) or legal status (e.g. legal or natural person) nor on the number of founders or shareholders.

Holding company registration takes up to 2-10 days depending on the registration procedure.

If you would like to get more information about holding regime and other benefits, feel free to contact us via info@gatetobaltics.com, by telephone +371 673 98611 or fill in our contact form.

Contact us