Interview with Mr. Jurģis Miezainis, Parliamentary Secretary of the Ministry of Economics of the Republic of Latvia

Latvia’s Positioning in Digital Nomadism, Entrepreneurship and Tourism

Mr. Jurģis Miezainis

Where is Latvia positioning itself in terms of digital nomads, startups, and entrepreneurship?

Latvia, and the Baltic region as a whole, is quite digitally well-developed. This digital transformation began in the 1990s when Latvia regained independence and made significant investments in IT infrastructure. Today, we are on par with our Estonian colleagues in establishing ourselves as a premier destination for IT businesses.

What kind of IT businesses are you aiming to attract? Are you focusing solely on tech companies, or are you open to any type of startup?

Our startup ecosystem currently includes nearly 100 companies, with a significant rise in numbers. The sectors we emphasize are deep-tech, science, and other innovative industries. Latvia is keen to foster innovations—whether they are developed here, tested, or commercialized in our market.

Why should startups choose Latvia? What initiatives and benefits do you offer?

Latvia provides a range of benefits, including strong associations offering consultation services for startups. The Latvian Investment Agency manages financial incentives such as grants of up to €200,000 for business ideas, product development, and new market access. Additionally, we offer large grants for industrial research, technological transfers, and training programs.

In terms of taxation, we recently simplified and improved our tax system, ensuring it remains competitive in the region. Our goal is to provide a favorable business climate that competes with our Baltic neighbors.

How does Latvia compare to Estonia? Do you compete with them, and if so, how?

Diplomatically speaking, we go head-to-head with Estonia in establishing ourselves as the leading tech hub in the Baltics. Companies frequently migrate between Latvia and Estonia, which is a testament to the competitiveness of our ecosystem. In some parameters, we surpass Estonia, and in others, they lead. However, the rivalry is constructive and beneficial for the region’s growth.

Do Latvia’s benefits for startups extend beyond the initial startup phase, such as tax breaks and R&D grants?

Yes, the support extends beyond the initial phase, particularly in our special economic zones, such as the Latgale region’s Technological Special Economic Zone. Companies located in these zones receive tax rebates and exemptions. Additionally, financial support primarily comes from EU funding, which allows for various project-based incentives. Moreover, institutions like Altum provide credit support for businesses. Each company can tailor its support structure depending on its needs.

Beyond financial benefits, do you offer mentorship and training support?

Absolutely. We have employee training and upskilling programs tailored to business needs. These programs are available year-round, ensuring that companies can continuously invest in their workforce. Furthermore, a key initiative we’ve introduced is our Investment Council, directly under the Prime Minister. This council streamlines permitting processes for companies investing over €5 million, ensuring they receive fast-tracked support and a dedicated liaison to navigate regulatory requirements.

What about residency programs for startup founders, especially for third-country nationals like Americans, Indians, and British entrepreneurs?

Latvia does have residency programs for entrepreneurs, though specific policies have evolved due to geopolitical factors. We have restricted certain residency programs for Russian and Belarusian nationals due to security concerns. Other third-country nationals, for example, can apply for a temporary residence permit as a person who has made financial investments in a credit institution of the Republic of Latvia.

Do you focus on attracting major events to promote Latvia internationally?

Yes, attracting major international events is a key part of our strategy. Last summer, we hosted a World Rally Championship event in Liepāja, which helped put Latvia on the map. We also have a state-supported program to attract large-scale sporting events.

Another area of focus is film production. We are introducing a new rebate program for filmmakers, offering up to 30% in reimbursements for expenses incurred in Latvia. This is one of the most competitive film incentives in the region. With our diverse architecture and landscapes, we are positioning Latvia as a prime filming destination.

Beyond business, what does Latvia offer digital nomads and visitors?

Latvia has a unique natural landscape, with 60% of our territory covered in forests. We boast clean air, scenic coastlines, and a moderate climate. While this winter has been uncharacteristically warm, Latvia typically experiences snowy winters and warm summers. Our countryside offers eco-retreats and nature-focused tourism, making it an attractive destination for those seeking a balance between work and leisure.

How well-connected is Latvia for business and tourism?

Latvia is very well-connected, especially via Riga International Airport, the most well-connected airport in the Baltics. Air Baltic operates flights to nearly every European country. Upon arrival, visitors can easily rent a car, use public transport, or take taxis with pre-paid vouchers to ensure safe travel. Accommodation options are abundant in Riga and the countryside.

Who are the biggest groups of tourists visiting Latvia, and what markets are you targeting?

Most of our visitors come from European countries, particularly Germany, Scandinavia, and the UK. Our diaspora in the UK also helps promote Latvia as a travel destination. Due to the war in Ukraine and travel restrictions from Russia and Belarus, we have shifted our focus to Asian markets, including Japan, China, and Korea. Since Latvia is a smaller country, we often collaborate with Estonia and Lithuania to promote the Baltics as a whole.

Is there much winter tourism in Latvia?

Yes, we offer various winter activities, including skiing in the eastern regions. Some ski slopes remain open this year despite the warm weather. We also have unique winter events, such as drag races up snowy ski slopes, which are quite popular among motorsport enthusiasts. Additionally, Riga attracts cruise ships year-round, with night festivals and cultural events planned around their arrivals.
Thank you! We look forward to welcoming more entrepreneurs, tourists, and investors to Latvia