New offshore zone in the Baltic

01.08.2012 Since 2013 Latvia will become a full offshore zone for holding companies. If now in the state only some received and paid dividends exempt, in accordance with legislative changes in 2013, tax-exempt income will be Latvian companies from sale of capital and shares, and any dividends. Also not be subject to withholding tax dividends in other countries. And in 2014, will not be taxed at source in other countries of interest and royalties. 

Expert’s opinion

It is good news! Geographical position at the crossroads of transport routes, proximity to Russia and other CIS countries, and from next year and the favorable tax treatment - what more can you wish for! Latvia is becoming a serious competitor for Cyprus.

Especially, in contrast to the Mediterranean state, Latvia has significant advantages. First of all, it is a stable banking system in Latvia, as we cannot say now about Cyprus. Secondly, Latvia is one of the few European countries, where the entire population speaks Russian, including financial services, also in Russian.
Also, pay attention to the large number of tax treaties in the state. At present, Latvia has signed an agreement with 51 countries, including almost all European countries, USA, Canada, China and CIS countries - such as Belarus, Ukraine, Kazakhstan, Uzbekistan, and Azerbaijan.

Based on the above said, it is possible to make a conclusion that changes in tax laws may be the source of the Latvian economy. So respectively, Latvia will become an attractive financial center not only for Russian businessmen, but also for the European!

On the basis: http://www.mk.gov.lv/ru/?lang=1

Natalie Dambieva ( the paralegal of Moscow office of Honest & Bright )