On Tuesday, February 18, Minister of Economics Viktors Valainis met with John Martin Tully, Chairman of the Board and President of the American Chamber of Commerce in Latvia ("AmCham"), and an accompanying delegation to discuss key issues related to enchancing Latvia's business environment. The discussions aimed to make Latvia more attractive to foreign investors and strengthen economic ties between Latvia and the United States.
During the meeting, AmCham highlighted a significant challenge faced by both U.S. individual investors in Latvia and local businesses seeking to attract investors. When distributing dividends from companies registered in Latvia, investors face actual double taxation, as they are unable to apply tax treaty relief. As a result, investor profits are taxed both in Latvia and in their country of tax residence, creating an additional tax burden for U.S. investors. This makes Latvia one of the most expensive countries for investment.
Minister Valainis drew AmCham's attention to the fact that the Coordination Council for Large and Strategically Important Investment Projects, led by the Prime Minister, monitors the progress of all major investment projects in Latvia. He stated that he would initiate a discussion at the next council meeting to address this investor concern.
“If we want to boost U.S. investments in Latvia, the double taxation issue must be resolved immediately. It is an unnecessary and long-standing burden on investors that responsible authorities must finally address,” said Valainis.
The meeting also covered topics such as the implementation of artificial intelligence (AI) regulations, the role of AI in industry development—particularly in medicine—and Latvia’s goal to integrate into the global microchip production supply chain.
Additionally, discussions with AmCham representatives included other investment attraction matters, including ongoing talks on improving labor legislation.
Notably, in September 2024, President Edgars Rinkēvičs and Minister of Economics Viktors Valainis led the largest-ever Latvian trade mission to the U.S., visiting three cities—Houston, San Francisco, and Denver. The delegation included 70 entrepreneurs who had the opportunity to attend the world's leading energy exhibition, Gastech, in Houston, the technology expo Dreamforce in San Francisco, and the Latvia-U.S. Business Forum in Denver. The visit also featured numerous individual meetings, visits to leading global technology companies, the signing of cooperation agreements, and the establishment of steps for future collaboration with the U.S. The goal is to double trade turnover to €1.9 billion within the next three to five years.