Translated using ChatGPT service.
Latvia's startup ecosystem consists of over 600 startups, with more than half operating in the information and communication services sector, and over 20% in manufacturing and professional, scientific, and technical services.
To support the faster growth of startups, the state offers assistance for making fixed payments and attracting highly qualified employees in accordance with the Startup Support Law.
"Funding availability for startups will not be delayed - the Latvian Investment and Development Agency (LIAA) is prepared to expedite the review of startup applications, ensuring that the actual support is received as a priority. According to the information available to LIAA, the changes currently affect the support provided to 8 companies that have approached LIAA. The amendments to the Cabinet of Ministers (CM) regulations proposed by the Ministry of Economics are already included in the CM meeting on August 13. The changes to the CM regulations will allow for the acceptance and evaluation of proposals, as well as the allocation of funding. Simultaneously, the amendments to the law are being advanced in an expedited manner," notes Minister of Economics Viktors Valainis.
To continue support for fixed payments in accordance with the current European Union de minimis aid regulation, as well as to clarify other norms related to support administration, amendments to the CM regulations governing the application and administration procedures of the startup support program will be reviewed at the next CM meeting.
The amendments to the CM regulations are expected to increase the total de minimis support amount, which can reach up to 300,000 euros (previously 200,000 euros).
Accordingly, following the government's decision to change the regulations to implement the requirements of the European Commission Regulation No. 2023/2831, the Latvian Investment and Development Agency will be able to make decisions on support for fixed payment applications submitted by startup projects.
At the same time, the Ministry of Economics has prepared amendments to the Startup Support Law, which will include a reference to the new European Commission de minimis regulation. These amendments are currently undergoing inter-institutional coordination and are expected to be approved by the Saeima in September 2024 on an expedited basis.
It is also worth noting that startups still have access to support for attracting highly qualified employees within the innovation voucher support program.
The startup sector employs more than 3,000 highly qualified workers and contributes over 57 million euros annually in taxes. According to data provided by the Latvian Investment and Development Agency, since 2017, 112 startups have received support for fixed tax payments, and 29 startups have received support for attracting highly qualified employees. In 2024, LIAA has provided support for fixed tax payments to 15 startups, while 4 startups have received support for attracting highly qualified employees, with another 8 startups currently awaiting approval.