2023 Investment Climate Statements: Latvia

Policies Towards Foreign Direct Investment

The Latvian government actively encourages foreign direct investment (FDI) and works with investors to improve the country’s business climate. Latvia has a dedicated investment promotion agency – the Latvian Investment and Development Agency – to provide a full scope of investment services to prospective investors: https://www.liaa.gov.lv/en . The agency has two dedicated representatives based in the United States (San Francisco, CA and Boston, MA). The Latvian government meets annually with the Foreign Investors Council in Latvia (FICIL), which represents large foreign companies and chambers of commerce, to solicit ideas to improve the business environment and encourage foreign investment. The Prime Minister chairs the Coordination Council for Large and Strategically Important Investment Projects. In May 2022, FICIL published its Sentiment Index 2021 – a survey of current foreign investors’ assessments about the investment climate in Latvia. It is available at: https://www.ficil.lv/sentiment-index/  .

Limits on Foreign Control and Right to Private Ownership and Establishment

Latvian legislation requires on the basis of national security concerns governmental approval prior to the transfer of significant ownership interests in the energy, telecommunications, and media sectors. The government is considering expanding this list of sectors. Detailed information is available here: https://investmentpolicy.unctad.org/country-navigator/118/latvia.  To date, national security concerns have been invoked once to reject a foreign acquisition in Latvia’s media sector (Radio SWH). In addition, in February 2023 the Latvian government decided not to allow the sale of a major metal works company owned by a sanctioned Russian oligarch for security reasons: https://baltics.news/2023/02/16/the-government-does-not-allow-the-sale-of-capital-shares-of-severstal-distribution-subject-to-sanctions/ 

With these limited exceptions, physical and legal persons who are citizens of Latvia or of other EU countries may freely purchase real property. Physical and legal persons who are citizens of non-EU countries (third-country nationals) generally may freely purchase developed real property. However, third-country nationals may not directly purchase certain types of agricultural, forest, and undeveloped land. Such persons may acquire ownership interest in such land through a company registered in the Register of Enterprises of the Republic of Latvia, provided that more than 50 percent of the company is owned by: (a) Latvian citizens and/or Latvian governmental entities; and/or (b) physical or legal persons from countries with which Latvia signed and ratified an international agreement on the promotion and protection of investments on or before December 31, 1996; or for agreements concluded after this date, so long as such agreements provide for reciprocal rights to land acquisition. The United States and Latvia have such an agreement (a bilateral investment treaty in force since 1996). In addition, foreign investors can lease land without restriction for up to 99 years. The Law on Land Privatization in Rural Areas allows EU citizens to purchase Latvia’s agricultural land and forests. Other restrictions apply (to both Latvian citizens and foreigners) regarding the acquisition of land in Latvia’s border areas, Baltic Sea and Gulf of Riga dune areas, and other protected areas.

In May 2017, the President of Latvia promulgated amendments to the Law on Land Privatization in Rural Areas to simplify and clarify the process for local farmers to purchase land. The law, however, also prohibits foreigners who do not have a working knowledge of the Latvian language from purchasing agricultural land. On June 11, 2020, the Court of Justice of the EU found that the provision violated European law, but the Latvian government has yet to amend the law.

The Latvian constitution guarantees the right to private ownership. Both domestic and foreign private entities have the right to establish and own business enterprises and engage in all forms of commercial activity, except those expressly prohibited by law.

Other Investment Policy Reviews

The Organization for Economic Cooperation and Development (OECD) published the latest Latvia Economic Snapshot in March 2022 ( http://www.oecd.org/economy/latvia-economic-snapshot/ ). Although there have been no trade policy reviews specifically involving Latvia, the WTO completed its latest review of the European Union in February 2020. ( https://www.wto.org/english/tratop_e/tpr_e/tp495_e.htm ). Additionally, in October 2017, the World Bank published a review of Latvia’s tax system ( http://documents.worldbank.org/curated/en/587291508511990249/Latvia-tax-review ).

Business Facilitation

A new business can be registered in Latvia in one day. The Latvian Investment and Development Agency has prepared a guide on starting a business in Latvia: https://investinlatvia.org/  .

The official website of the Latvian Commercial Register provides detailed information in English on the business registration process in Latvia: https://www.ur.gov.lv/en/ .

Latvia has implemented special legislation to encourage startup ventures through favorable tax treatment. For more information, please see here: https://labsoflatvia.com/en/support .

Using the European Commission definitions of micro, small, and medium enterprises (MSMEs), Latvia has established a special tax regime for microenterprises. This special tax regime is available to foreign nationals. Changes introduced as of January 2022, including an increased microenterprise tax rate, now make the tax regime less attractive for most small companies. For additional details on the microenterprise tax regime, see: https://www.fm.gov.lv/en/micro-enterprise-tax 

Latvia joined other OECD countries in July 2021 in agreeing to a new framework for global tax reform and a global minimum corporate tax rate of 15 percent for multinational enterprises with annual revenue exceeding $868 million. Further detailed technical guidance can be found here: https://www.oecd.org/tax/beps/oecd-releases-detailed-technical-guidance-on-the-pillar-two-model-rules-for-15-percent-global-minimum-tax.htm 

Outward Investment

The Latvian government does not incentivize outward investment nor restrict Latvians from investing overseas.

Transparency of the Regulatory System

Latvia’s legislation is in compliance with EU and WTO GPA requirements. The Latvian government has developed a good working relationship with the foreign business community (through FICIL) to streamline various bureaucratic procedures and to address legal and regulatory issues as they arise. Additional information on the regulatory system in Latvia is available here: http://rulemaking.worldbank.org/en/data/explorecountries/latvia.

The public finance and debt obligations process is transparent. Detailed information on the national budget process is available on the Latvian Ministry of Finance’s website: https://www.fm.gov.lv/en/s/budget/ .

International Regulatory Considerations

As an EU member, Latvia has incorporated European norms and standards into its regulatory system. As an EU member, Latvia is a signatory to the WTO Trade Facilitation Agreement. As a WTO member, Latvia has the duty to notify all draft technical regulations to the WTO Committee on Technical Barriers to Trade.

Legal System and Judicial Independence

Latvia has a three-tier court system comprising district (city) courts, regional courts, and the Supreme Court. In addition, the Constitutional Court reviews the compatibility of decrees and acts of the President of the Republic, the government, and local authorities with the constitution and the law. Unless otherwise stipulated by law, district courts are the courts of first instance in all civil, criminal, and administrative cases. Regional courts have appellate jurisdiction over district court cases and original jurisdiction for certain cases specified in the Civil Code, such as cases on the protection of patent rights, trademarks, and geographic indicators, as well as cases on the insolvency and liquidation of credit institutions. The Supreme Court is the highest court in Latvia and – depending on the origin of the case – has either de novo review of both factual and legal findings or, in instances where it is the second appellate court reviewing a case, cassation review of only legal findings. In March 2021, Latvia established a specialized Economic Court to handle cases of corruption, economic crimes, and complex commercial disputes.

City and regional courts are administered by the Ministry of Justice ( https://www.tm.gov.lv/en ), while the Supreme Court and Constitutional Court are independent.

Observers have voiced concerns about the length of criminal and civil cases in Latvia, and the nature and opacity of judicial rulings have led some investors to question the fairness and impartiality of some judges. These concerns are not specific to foreign or local investors, however, and the court system is generally viewed as applying the law equally to the interests of foreign and local investors. Although the Ministry of Justice has enacted reforms designed to reduce the backlog of cases in the lower courts, improvements in the judicial system are still needed to accelerate the adjudication of cases, to strengthen the enforcement of court decisions, and to upgrade professional standards. The Economic Court was created by the government in part as an effort to accelerate and improve adjudication of commercial cases and financial crimes.

Laws and Regulations on Foreign Direct Investment

Incoming foreign investment in Latvia is regulated by the Commercial Law. The Latvian Investment and Development Agency’s website is a helpful resource for navigating the rules and procedures governing foreign investment: https://investinlatvia.org .

Competition and Antitrust Laws

The Competition Council supervises competition-related concerns. The council’s decisions can be appealed to a court in Latvia. More information can be accessed at: http://www.kp.gov.lv/en .

In January 2023, the Competition Council fined three public passenger transport service providers $2 million for infringing on competition laws: https://www.kp.gov.lv/en/article/cc-fines-three-public-passenger-transport-service-providers-participating-cartel .

Expropriation and Compensation

Cases of arbitrary expropriation of private property by the Government of Latvia are extremely rare. Expropriation of foreign investment is possible in a very limited number of cases specified in the Law on the Alienation of Immovable Property Necessary for Public Needs: ( https://likumi.lv/ta/en/en/id/220517-law-on-the-alienation-of-immovable-property-necessary-for-public-needs ). If the owner of the property claimed by the government deems the compensation inadequate, he or she may challenge the government’s decision in a Latvian court.

Dispute Settlement

ICSID Convention and New York Convention

Latvia is a member of the International Center for the Settlement of Investment Disputes (ICSID) and a member of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. Judgments of foreign arbitral courts that are made in accordance with either can therefore be enforced in Latvia. The Civil Procedure Law stipulates that judgments of foreign non-arbitral courts can be enforced in Latvia.

Investor-State Dispute Settlement

There have been no claims by U.S. investors under the Bilateral Investment Treaty against Latvia.

On December 22, 2017, the ICSID ruled that Latvia had violated its bilateral investment treaty with Lithuania and ordered Latvia to pay $1.9 million to a Lithuanian energy company in a dispute over the nationalization of a heating and hot water supply system. According to a local law firm, this is the first decision on the merits in an ICSID case against the Republic of Latvia.

International Commercial Arbitration and Foreign Courts

The Law on Arbitration Courts regulates the establishment and operation of local arbitration courts in Latvia. According to the information available in the register, there are 62 arbitration institutions registered in Latvia ( https://www.ur.gov.lv/lv/registre/organizaciju/skirejtiesas/skirejtiesu-saraksts/ ). In most commercial agreements, parties opt to refer their disputes to arbitration rather than to Latvian courts.

The Civil Procedure Law contains a section on arbitration courts. This section was drafted on the basis of the United Nations Commission on International Trade Law (UNCITRAL) model, thus providing full compliance with international standards. The law also governs the enforcement of rulings of foreign non-arbitral courts and foreign arbitrations. The full text of the law in English can be found here: https://likumi.lv/ta/en/id/50500-civil-procedure-law. 

Bankruptcy Regulations

There are two laws governing bankruptcy procedure: the Law on Insolvency and the Law on Credit Institutions (regulating bankruptcy procedures for banks and other financial sector companies).

The business community has expressed concerns over inefficiency and allegations of corruption in Latvia’s insolvency administration system. Latvia has partly addressed the issue by partnering with the European Bank for Reconstruction and Development on a project entitled “Support for Debt Restructuring in Latvia.” More information is available here: https://www.ebrd.com/news/2023/latvia-has-a-new-action-plan-to-support-public-in-resolving-financial-distress.html .

Investment Incentives

Latvia does not offer tax incentives. The Cross-Sectoral Coordination Center of Latvia is the main agency in charge of National Development Planning. In accordance with the Law on the Development Planning System ( https://likumi.lv/doc.php?id=175748 ), national development planning documents are prepared for a long term (up to 25 years), medium term (up to seven years) and short term (up to three years). More information is available here: https://www.pkc.gov.lv/en

In addition, Latvia has identified the following sectors as having the highest potential for new investment: bioeconomy, biomedicine, global business services, green technology, ICT, smart city, smart materials and photonics, engineering and metalworking, food processing, healthcare, life science, and transport and storage. The information is disseminated to the general public and potential investors via the Latvian Investment and Development Agency’s official website ( https://investinlatvia.org/en/key-sectors ), and through its representative offices ( https://www.liaa.gov.lv/en/liaa-representative-offices-abroad  ).

Because the Latvian government extends national treatment to foreign investors, most investment incentives and requirements apply equally to local and foreign businesses. Latvia has three special economic zones and two free ports in which companies benefit from various tax rebates (real estate, dividend, and corporate income) and do not pay VAT. The full list of investment incentives is available here: https://labsoflatvia.com/en/support .

Latvia does not have a practice of issuing guarantees or jointly financing foreign direct investment projects.

Latvia has the third highest share of renewables in total energy consumption within the European Union (42 percent). The majority of Latvia’s renewable energy comes from conventional hydro and biomass. In Latvia, renewable electricity generation is promoted through a support system based on feed-in tariffs, but the current support mechanism is under revision. Latvia’s National Climate and Energy Action Plan 2021-2030 is available here: https://www.em.gov.lv/en/national-energy-and-climate-plan-2021-2030 .

Foreign Trade Zones/Free Ports/Trade Facilitation

There are five free trade areas in Latvia. Free ports have been established in Riga and Ventspils. Special economic zones (SEZ) have been created in Liepaja, a port city in western Latvia; Rezekne, a city in eastern Latvia; and Latgale, which borders Russia and Belarus and is the poorest region in Latvia.

Somewhat different rules apply to each of the five zones. In general, the two free ports provide exemptions from indirect taxes, including customs duties, VAT, and excise tax. The SEZs offer additional incentives, such as an 80-100 percent reduction of corporate income taxes and real estate taxes. To qualify for tax relief and other benefits, companies must receive permits and sign agreements with the appropriate authorities: the Riga and the Ventspils Port Authorities for the respective free ports; the Liepaja SEZ Administration; the Rezekne SEZ Administration; or the Latgale SEZ Administration. The SEZs are expected to remain until 2035.

Performance and Data Localization Requirements

Except for specific requirements for investors acquiring former state enterprises through the privatization process, there are no performance requirements for a foreign investor to establish, maintain, or expand an investment in Latvia. In the privatization process, performance requirements for investors, both foreign and domestic, are determined on a case-by-case basis.

Under Latvian Immigration Law, foreign citizens can enter and reside in Latvia for temporary business activities for up to three months in a six-month period. For longer periods of time, foreigners are required to obtain residence and work permits. The Latvian Investment and Development Agency has created a guide to help third-country nationals interested in working in Latvia obtain work permits: https://investinlatvia.org/assets/upload/Relocation%20Guide-web.pdf .

A third-country national may obtain a five-year temporary residence permit if he or she has made certain minimum equity investments in a Latvian company, certain subordinated investments in a Latvian credit institution, or purchased real estate for certain designated sums, subject to limitations in each case. More information is available here: https://labsoflatvia.com/en/news/what-has-happened-to-the-startup-visa-since-the-war-in-ukraine 

Latvia’s Law on Personal Data Processing, implementing the EU’s General Data Protection Regulation, entered into force in July 2018. Full text of the Law is available here: https://likumi.lv/ta/en/en/id/300099-personal-data-processing-law.

More information is available here: https://www.dvi.gov.lv/en/. 

Real Property

Latvia recognizes the full spectrum of property rights, including mortgages and liens. Latvia does not have significant problems with unclear legal titles. More information: http://www.globalpropertyguide.com/Europe/Latvia/Buying-Guide .

Intellectual Property Rights

Latvia is not listed in USTR’s Special 301 Report nor included in the Notorious Markets List.

To harmonize its legislation with EU and WTO requirements, Latvia has established a legal framework for the protection of intellectual property rights (IPR), including legislation to protect copyrights, trademarks, and patents. The Law on Copyrights strengthens the protection of software copyrights and neighboring rights. Foreign owners may seek redress for violation of their IPR through the appellation council at the Latvian Patent Office, as well as through private litigation. In copyright violation cases, aggrieved parties can request that the use of the pirated works be prohibited, pirated copies be destroyed, and that violators compensate them for losses (including lost profits). The Criminal Law stipulates penalties for copyright violations.

The United States has signed a Trade and Intellectual Property Rights Agreement with Latvia. Latvia is a member of the World Intellectual Property Organization (WIPO) and party to the Paris Convention, the Berne Convention, the Patent Cooperation Treaty (PCT), the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty, and the Geneva Phonograms Convention. In addition, the Latvian government has amended all relevant laws and regulations to comply with the requirements of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), to which Latvia acceded by joining the WTO.

The business community has occasionally raised concerns regarding the enforcement of IPR in Latvia. Digital piracy is still a concern in Latvia,. Latvian law enforcement authorities have the authority to investigate IPR infringement cases. The Government of Latvia is working to tackle online/digital piracy, and has drafted policy guidelines: https://www.iem.gov.lv/en/article/tackle-copyright-infringements-digital-environment-more-effectively. 

Every year, the European Commission publishes a report describing the customs detentions of articles suspected of infringing IPR. Those statistics are available here: https://ec.europa.eu/taxation_customs/business/customs-controls/counterfeit-piracy-other-ipr-violations/ipr-infringements-facts-figures_en .

For additional information about national laws and points of contact at local IPR offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/ .

Resources for Rights Holders

List of Attorneys in Latvia, compiled by the Consular Section of the U.S. Embassy in Riga: https://lv.usembassy.gov/u-s-citizen-services/attorneys/

American Chamber of Commerce of Latvia: http://www.amcham.lv/en/home 

Contact at Copyright Offices
Ms. Ilona Petersone
Director of Copyright Division, Ministry of Culture of the Republic of Latvia
+371 29255296 
Ilona.Petersone@km.gov.lv 

Contact at Industrial Property Offices
Mr. Agris Batalauskis
Director of the Patent Office of the Republic of Latvia
+371 670 99 600
valde@lrpv.lv 

Capital Markets and Portfolio Investment

Latvian government policies do not interfere with the free flow of financial resources or the allocation of credit. Local bank loans are available to foreign investors. The NASDAQ/OMX Riga Stock Exchange (RSE) ( www.nasdaqomxbaltic.com ) operates in Latvia, and the securities market is based on the continental European model. Latvia, Estonia, and Lithuania agreed to create a pan-Baltic capital market by creating a single index classification for the entire Baltic region. Latvia is currently rated by various index providers as a frontier market due to its small size and limited liquidity. https://www.fm.gov.lv/en/article/latvia-passes-ebrd-supported-covered-bond-law .

Money and Banking System

Latvia’s retail banking sector, which comprises primarily Scandinavian retail banks, generally maintains a positive reputation. Latvian banks servicing non-resident clients, however, have for several years been under increased scrutiny due to their previously poor compliance with anti-money laundering standards. In 2018, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) identified Latvia’s third-largest bank as a “foreign bank of primary money laundering concern” and issued a proposed rule prohibiting U.S. banks from doing business with or on behalf of the bank. The Latvian bank regulator has also levied fines against several non-resident banks for AML violations in recent years.

Latvia is a member of the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), a Financial Action Task Force (FATF)-style regional body. After MONEYVAL issued a report on August 23, 2018, finding that Latvia’s AML regime was in substantial compliance with only one out of eleven assessment categories, was in moderate compliance with eight areas, but in low compliance with two areas, Latvia implemented a number of reforms of its financial sector. In late 2019 and early 2020, MONEYVAL and the FATF concluded that Latvia had developed and implemented strong enough reforms for combating financial crimes to avoid increased monitoring via the so-called “grey list.” With this decision, Latvia became the first member state under MONEYVAL review to successfully implement all 40 FATF recommendations. The most recent MONEYVAL report can be found at: https://rm.coe.int/anti-money-laundering-and-counter-terrorist-financing-measures-latvia-/16809988c1. 

According to Latvian banking regulators, Latvia’s regulatory framework for commercial banking incorporates all principal requirements of EU directives, including a unified capital and financial markets regulator. Existing banking legislation includes provisions on accounting and financial statements (including adherence to international accounting), minimum initial capital requirements, capital adequacy requirements, large exposures, restrictions on insider lending, open foreign exchange positions, and loan-loss provisions. An Anti-Money Laundering Law and Deposit Guarantee Law have been adopted. An independent Financial Intelligence unit (FIU) operates under the supervision of the Ministry of Interior. Some of the banking regulations, such as capital adequacy and loan-loss provisions, reportedly exceed EU requirements.

According to the Finance Latvia Association, the total assets of the country’s banks at the end of 2022 stood at 27.74 billion euros. More information is available at: https://kompass.bank.lv/bankas/en/assets.

Securities markets are regulated by the Law on the Consolidated Capital Markets Regulator, the Law on the Financial Instrument Market, and several other laws and regulations.

Foreign Exchange and Remittances

Foreign Exchange

The currency of Latvia is the euro. There are no restrictions on exchanging currencies or capital movement, and foreign investors are allowed to extract their profits in any currency with no restraints. As of March 21, 2023, one euro is worth $1.0776. Details available here: https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/eurofxref-graph-usd.en.html 

Remittance Policies

Latvian law provides for unrestricted repatriation of profits associated with an investment. Investors can freely convert local currency into foreign exchange at market rates and have no difficulty obtaining foreign exchange from Latvian commercial banks for investment remittances. Exchange rates and other financial information can be obtained at the European Central Bank website: https://www.ecb.europa.eu/stats/exchange/eurofxref/html/index.en.html .

Sovereign Wealth Funds

Latvia does not have a sovereign wealth fund.

Privatization Program

The Law on Privatization of State and Municipal Property governs the privatization process in Latvia. State joint stock company “Possessor” ( https://www.possessor.gov.lv/ ) uses a case-by-case approach to determine the method of privatization for each state enterprise. The three allowable methods are: public offering, auction for selected bidders, and international tender. For some of the largest privatized companies, a percentage of shares may be sold publicly on the NASDAQ OMX Riga Stock Exchange. The government may maintain shares in companies deemed important to the state’s strategic interests. Privatization of small and medium-sized state enterprises is considered largely complete.

Latvian law designates six State Joint Stock Companies that cannot be privatized: Latvenergo (Energy and Mining), Latvijas Pasts (Postal Services), Riga International Airport, Latvijas Dzelzcels (Automotive and Ground Transportation), Latvijas Gaisa Satiksme (Aerospace and Defense), and Latvijas Valsts Mezi (Forestry). Other large companies in which the Latvian government holds a controlling interest include airBaltic (Travel), TET (Information and Communication), Latvian Mobile Telephone (Information and Communication), and Conexus Baltic Grid (Energy). During the COVID-19 pandemic, the government invested EUR 250 million into airBaltic equity, thus increasing its stake in the airline to 96.14%. The airline plans to return the investment to the state, via an initial public offering, potentially in 2024-2025.

Additional Resources

Department of State

• Country Reports on Human Rights Practices ( https://www.state.gov/reports-bureau-of-democracy-human-rights-and-labor/country-reports-on-human-rights-practices/)
• Trafficking in Persons Report ( https://www.state.gov/trafficking-in-persons-report/)
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities ( https://www.state.gov/key-topics-bureau-of-democracy-human-rights-and-labor/due-diligence-guidance/)
• U.S. National Contact Point for the OECD Guidelines for Multinational Enterprises ( https://www.state.gov/u-s-national-contact-point-for-the-oecd-guidelines-for-multinational-enterprises/)
• Xinjiang Supply Chain Business Advisory ( https://www.state.gov/xinjiang-supply-chain-business-advisory/)

Department of the Treasury

• OFAC Recent Actions ( https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions )

Department of Labor

• Findings on the Worst Forms of Child Labor Report ( https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  )
• List of Goods Produced by Child Labor or Forced Labor ( https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods )
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World ( https://www.dol.gov/general/apps/ilab )
• Comply Chain ( https://www.dol.gov/ilab/complychain/ )

Climate Issues

Latvia has adopted a strategy achieving climate neutrality by 2050, which is available here: https://unfccc.int/documents/267179 . In addition, Latvia’s National Climate and Energy Action Plan 2021-2030 is available here: https://www.em.gov.lv/en/national-energy-and-climate-plan-2021-2030 .

Resources to Report Corruption

Latvian law enforcement institutions, foreign business representatives, and non-governmental organizations have identified corruption and the perception of corruption as persistent problems in Latvia. According to the 2022 Corruption Perception Index by Transparency International, Latvia ranks 39th out of 180 countries (in order from the lowest perceived level of public sector corruption to the highest).

To strengthen its anti-corruption programs, the Latvian government has adopted several laws and regulations, including the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing and the Law on Prevention of Conflicts of Interest in the Work of Public Officials. The Conflicts of Interest Law imposes restrictions and requirements on public officials and their relatives. Several provisions of the law deal with the previously widespread practice of holding several positions simultaneously, often in both the public and private sector. The law includes a comprehensive list of state and municipal jobs that cannot be combined with additional employment. Moreover, the law expanded the scope of the term state official to include members of boards and councils of companies with state or municipal capital exceeding 50 percent. Additionally, Latvia is a member of the OECD Anti-Bribery Convention and the Council of Europe’s Group of States Against Corruption (GRECO). In line with OECD and GRECO recommendations, the government is working to strengthen anti-corruption policy and enforcement while improving the functioning of the independent Corruption Prevention and Combatting Bureau (KNAB).

Under Latvian law, it is a crime to offer, accept, or facilitate a bribe. Although the law stipulates heavy penalties for bribery, a limited number of government officials have been prosecuted and convicted of corruption to date. The law also provides the possibility of withdrawing charges against a person giving a bribe in cases where the bribe was extorted or in cases where the person voluntarily reports these incidents and actively assists the investigation. In addition, the Latvian government adopted a whistleblower law that requires all government agencies and large companies to establish protocols to accept whistleblower disclosures and protect whistleblowers from reprisals.

KNAB is the institution with primary responsibility for preventing and combating corruption and carrying out enforcement activities in response to suspected or alleged corruption. It is subordinated to the Cabinet of Ministers and supervised by the Prime Minister.

KNAB also established a Public Consultative Council to help increase public participation in implementing its anti-corruption policies, increasing public awareness, and strengthening connections between the agency and the public. More information is available at: https://www.knab.gov.lv/en/knab/consultative/public/ . The Prosecutor General’s Office also plays an important role in fighting corruption.

There is a perceived lack of fairness and transparency in the public procurement process in Latvia. Several companies, including foreign companies, have complained that bidding requirements are sometimes written with the assistance of potential contractors or couched in terms that exclude all but preferred contractors.

A Cabinet of Ministers regulation provides for public access to government information, and the government generally provides citizens such access. There have been no reports that the government denied noncitizens or foreign media access to government information.

Resources to Report Corruption

Contact at government agency responsible for combating corruption:
Corruption Prevention and Combating Bureau
Citadeles iela 1, Riga, LV 1010, Latvia
+371 67356161
knab@knab.gov.lv 

Contact at “watchdog” organization:
Delna (Latvian affiliate of Transparency International)
Citadeles iela 8, Riga, LV-1010
+371 67285585
ti@delna.lv