Exporting advice
Consumer base familiar with the UK
Latvia has a population of approximately 1.9 million. It’s a sophisticated consumer market, and consumers are technologically proactive and internet literate. Domestic demand will play a major role in Latvia’s economic growth. Ties to the UK are strong, with a significant Latvian community residing in Britain.
Location and transport
Latvia occupies a strategic location at the crossroads of northern and eastern Europe. It’s at the centre of the developing Baltic states market. The country has strong transport links and is a key logistics base.
Top five UK goods exported to Latvia , in the four quarters to the end of Q2 2024
| Goods | Value (£ million ) |
|---|---|
| Aircraft | |
| Cars | |
| Textile fibres | |
| Mechanical power generators (intermediate) | |
| Toilet & cleansing preparations |
Source:
ONS Trade in goods: country-by-commodity exports
Last updated: October 2024
Download the latest trade and investment factsheet for Latvia.
Top five UK services exported to Latvia , in the four quarters to the end of Q2 2024
| Service | Value (£ million ) |
|---|---|
| Travel | |
| Transportation | |
| Telecommunications, computer and information services | |
| Other Business Services | |
| Financial |
Source:
ONS UK trade in services: service type by partner country, non-seasonally adjusted
Last updated: October 2024
Download the latest trade and investment factsheet for Latvia.
Total import value (into the UK from Latvia) and export value (from the UK into Latvia) over time
| Year | Imports (£ billion ) | Exports (£ billion ) | Total trade (£ billion ) |
|---|---|---|---|
| 2016 | 0.9 | 0.4 | 1.3 |
| 2017 | 0.8 | 0.5 | 1.4 |
| 2018 | 1.0 | 0.6 | 1.6 |
| 2019 | 1.2 | 0.6 | 1.8 |
| 2020 | 0.9 | 0.6 | 1.5 |
| 2021 | 1.4 | 0.6 | 1.9 |
| 2022 | 1.5 | 0.5 | 2.0 |
| 2023 | 1.2 | 0.6 | 1.8 |
Source:
ONS UK total trade: all countries, seasonally adjusted
Last updated: October 2024
Total trade is the sum of all exports and imports over the same time period.
Download the latest trade and investment factsheet for Latvia.
Latvia: at a glance
Economic growth
-0.3%
Actual figure (IMF, 2023)
The UK is 0.1% (IMF, 2023, projected figure)
GDP per capita
$23,153
Actual figure (IMF, 2023)
The UK is $49,099 (IMF, 2023, projected figure)
Currency
Euro
Business languages
Latvian, English
Time zone
GMT +2
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Opportunities for exporters
Doing business in Latvia is very similar to doing business in any other EU country. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Latvia. There are opportunities for UK businesses in the infrastructure, energy, education and ICT sectors.
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Developing transport infrastructure is one of the highest priorities for Latvia, offering significant business opportunities for UK companies. A number of major construction projects are also underway in the country.
Rail infrastructure
There are plans to improve Latvia’s railway infrastructure over the next few years. The ‘Rail Baltica’ project is a huge development linking Finland, the Baltic States and Poland with the rest of the EU using European standard gauge railway. The project, worth £5.8 billion, is in the development and design stage.
Construction projects
Several major construction projects are underway in Latvia. A new terminal for Riga International Airport will be built to meet increased demand. There are plans to build new highways, a new concert hall in Riga and military infrastructure projects. Many bridges are in critical condition and need reconstruction.
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Latvia’s energy sector is particularly green and opportunities abound around renewables and energy efficiency. Latvia has announced its intentions together with Estonia to develop the offshore wind park in the Riga Gulf.
Renewables
The Latvian energy sector is one of the greenest in Europe. The government has set a target for 40% of its energy to come from renewable sources by 2020. In particular, Latvia aims to increase energy efficiency in commercial buildings and to replace fossil energy sources with renewable ones.
UK expertise in offshore wind
The UK is a leader in the development of offshore wind parks. This experience and knowledge has very good potential to be shared and applied in the projects in the Baltic sea, such as the planned offshore wind park in the Riga Gulf, a joint project with Estonia.
Energy efficiency
There’s significant potential for UK businesses in Latvia’s energy efficiency market, especially around offshore wind parks, energy efficiency measures and management systems, smart grids and meters, and the sustainable use of energy sources.
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Educational institutions in Latvia are developing and expanding, and there’s a desire for new technologies and creativity. There’s potential for UK businesses to provide top-level training, as well as ICT infrastructure, software and online programmes.
High regard for UK education
The UK’s education system is highly valued among the Latvian population. UK businesses providing educational services and products therefore have considerable advantages in the market and will be attractive to students.
Use of English
English is the main business language in Latvia. This means courses in English are in high demand compared to those in other languages.
Demand for UK expertise
There is demand for UK expertise in education about topical technology issues. In particular, UK businesses will find opportunities in supplying courses on cybersecurity and artificial intelligence (AI).
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The Information and Communications Technology (ICT) sector in Latvia is developing rapidly, and the government supports the industry’s growth with an extensive development programme. UK companies will find particular opportunities in cyber security, 5G, ICT education, near field computing mobile payment systems and bespoke software solutions.
Cybersecurity and AI solutions
The UK is considered to have considerable expertise to offer in the fields of cybersecurity and AI. There’s promise for UK businesses in providing innovative solutions in these areas.
UK quality
In Latvia, UK businesses are considered to pay a lot of attention to the quality of their solutions and products, and so you’re likely to find a lot of demand in the market.
Appetite for latest technology
Latvian consumers are technologically proactive and internet literate and are always hungry for the latest available technologies.
Check for trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.
Check duties and customs
Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.
Doing business in Latvia
Preparing to Export
VAT
If you’re considering exporting to Latvia, you should make sure you’re aware of the relevant tax rates and any standards and technical regulations that apply to your products.
There are 4 VAT rates in Latvia:
- 21% standard tariff
- 12% lower tariff for some goods
- 5% lower tariff for fresh foodstuffs
- 0% for certain services related to the export, import and transport of goods
You can find the exact breakdown of taxes from the Latvian State Revenue Service. For latest tariffs, please look at the Latvian State Revenue Service website.
Corporate tax
The standard corporate tax rate in Latvia is 20%. You can find the most current information on tax rates from the Latvian State Revenue Service.
Standards and technical regulations
Products and packaging should meet EU standards. Latvijas Standarts is the standards authority in Latvia.
Labelling requirements are harmonised with EU regulations. Labelling must be in Latvian and must contain the product name, contents, name of the manufacturer and instructions for use.
Find more more information on EU standards
Find more information on Latvian standards (website in Latvian)
Services regulations
Information on rules for selling services and business travel to Latvia is available on gov.uk
Phytosanitary checks
Imports/exports of live animals, products of animal origin, animal feedstuffs and plants are all subject to sanitary and phytosanitary (SPS) checks. SPS checks are carried out at Latvia's Border Control Posts. Exporters need to check whether their goods are subject to SPS checks, and whether the entity is authorised to export animal products to the EU. Failure to do so could result in destruction of the goods/refused entry. Not all points of entry into Latvia are approved for all categories of goods
Read more on the list of SPS control points in Latvia
Public procurement
According to the law public procurement processes are published and are carried out electronically via the State Electronic Procurement System (EIS in Latvian). The procurement process is supervised by the Procurement Supervision Bureau, which also processes complaints.
Trade barriers
Check for any reported barriers to trading with Latvia.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Latvia
Intellectual property
Intellectual property (IP) rights are territorial. Rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office’s International IP Service provides practical information to help you protect, manage and enforce your IP abroad. Further support can be accessed through the service’s network of IP attachés. Based in key UK export markets, they provide guidance to British businesses on local IP matters.
Payment terms
When exporting to Latvia from outside the EU, Incoterms rules usually apply. In Latvia all methods of payment are available, ranging from pre-payment to letters of credit and after-payment, depending on the type of business, and the relationship and level of trust between supplier and buyer. Before opening a credit line, you should seek legal advice and ensure proper due diligence is carried out.
Next steps
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