Investors guide

Qualified and cost-efficient labour force: Liepaja has a population of about 86 400 inhabitants, 39 800  of which are of economically active age and it provides a wide range of specialists for various sectors. The higher and vocational educational establishments in the city offer many programmes that could interest potential employers: electrician and electro-mechanic, automotive mechanic, welder, industrial machinery operator, mechatronics programmes for the engineering industry; carpenter, joiner, machine operator programmes for the wood-processing industry; legal consultant, accountant, business manager, environmental specialist, tourism manager, social worker and teacher programmes for different operations.

 Liepaja city and especially Liepaja Special Economic Zone can offer as much as 2000 ha of free territories adjacent to the port, airport and the city. Premises available include former industrial production facilities that still have the infrastructure (gas, water, electricity, etc) necessary for starting production. There are several industrial park projects both municipal (greenfield - Pulvera Street Industrial Park, brownfield – Karosta Industrial Park) and private offering premises for investors.

Liepaja has a unique and advantageous geographic position – it is a natural transit point between the Western Europe and CIS countries. Thus its ice-free port is a very advantageous link between various points of destination. Port is multifunctional and allows combining various types of logistics activities to satisfy the needs of clients.  Liepaja also offers excellent railway cargo transport possibilities. The international airport adds to the scope of logistics connections available. Additionally Liepaja has a full range of transport service companies – shipping and forwarding agents, stevedoring companies, customs brokers and goods surveyors.

Liepaja is an excellent location for investors, because the city can offer highly beneficial fiscal incentives granted by the Liepaja Special Economic Zone. The legislation of LSEZ is harmonised with EU requirements and it will be in operation till 2017. Businesses within the LSEZ are entitled to the following incentives amounting to 50% of total investments in the LSEZ territory:

• 80% discount of corporate income tax
• 80% discount of real estate tax
• 0% rate of VAT for great part of supplies and services
• exemptions from excise tax and customs duties.

Investments

The amount of accrued foreign investments in fixed assets of the companies registered in Liepaja reached LVL 20,7m at the end of 2004. At the end of 1995 foreign investments in the stock capital of Liepaja companies constituted only LVL 0.3m. The amount of foreign direct investments invested in Liepāja comprises LVL 180 per capita. The most significant investments to the economy of Liepaja in 2004 were made by entrepreneurs from Ireland (43%), Denmark (19%), USA (8%), Virgin Islands (5%), Sweden (5%), Germany (2%) and Estonia (2%).