Destinations Catalog

The Republic of Latvia

Latvia
Population:
1 955 742
Capital:
Riga
UTC:
+02:00
Ease of Doing Business Index:
19
Currency:
EUR ($1 = EUR 0.90)
Unemployment Ratio:
9.8%
Income Tax:
31.40%
Corporate Income Tax:
20%
Social Tax:
11.00%
Notice Period:

10-30 days

Dismissal Period:

10+ days

Turnover Ratio:
$4500 million
Office Rent:
$10-40/m2 + operational costs - $1-3/m2 + 21%VAT.
IT Headcount:
31 000
IT Graduates:
5 900
Average Salary
Junior
Middle
Senior
Lead
$ 1 150
$ 2 200
$ 2 900
$ 3 600
English Level
High Proficiency
Main IT Outsorcing Destinations
Cities
IT Headcount
Main IT Outsorcing Destinations
Cities
IT Headcount
Latvia
Country Description

Latvia is one of the smallest countries in Europe; however, it is the one with a rapidly growing economy. Since the time the country joined the EU in 2004, the Latvian economy started developing even faster. As to the official statistics, Latvia has the third smallest deficit as well as the fifth lowest public debt in the EU. Also, Latvia has reduced the unemployment ratio to 9,6% which is also amidst the smallest in Europe.

Population
1 955 742
Capital
Riga
UTC
+02:00
Currency
EUR ($1 = EUR 0.90)
Ease of Doing Business Index
19
Unemployment Ratio
9.8%
Income Tax
31.40%
Corporate Income Tax
20%
Social Tax
11.00%
Notice Period

10-30 days

Dismissal Period

10+ days

Turnover Ratio
$4500 million
Office Rent
$10-40/m2 + operational costs - $1-3/m2 + 21%VAT.
IT Headcount:
31 000
IT Graduates:
5 900
Average Salary
Junior
Middle
Senior
Lead
$ 1 150
$ 2 200
$ 2 900
$ 3 600
English Level
-------

Country Description

Latvia is one of the smallest countries in Europe; however, it is the one with a rapidly growing economy. Since the time the country joined the EU in 2004, the Latvian economy started developing even faster. As to the official statistics, Latvia has the third smallest deficit as well as the fifth lowest public debt in the EU. Also, Latvia has reduced the unemployment ratio to 9,6% which is also amidst the smallest in Europe.

Income Tax

Personal Income Tax in Latvia varies between 20-31.40% depending on the income

  • 20% – income up to EUR 20,004
  • 23% – income between EUR 20,004 and EUR 55,000
  • 31.40% – income over EUR 55,000

Corporate Income Tax amounts to 20%.

Social Тax

The Social Security Tax in Latvia is paid by both individual employees as well as the employers. The rates are 11% and 24.09% respectively.

Notice Period

Latvian legislation doesn’t regulates the set notice period – it is somewhere between 10 days and 1 month. The researchers claim that an average notice period amounts to 15 days. The two parties are always open to negotiate the period; hence, this may last longer however only upon the mutual consent of the parties. The notice period for an employee going through the 3-month probation period may last only 3 days.

Dismissal Conditions

Latvian legislation envisages strict regulations within the Labor Law related to dismissal, reasons and terms.

An employee may be dismissed due to the following conditions:

  • misbehavior and/or other inappropriate activities at a workplace, e.g. violation of a contract terms, poor work ethics, illegal activity, substance abuse, putting the health safety of other people under risk;
  • economical, organizational or technological measures taken by the company
  • the long-term illness of an employee - the exception is given to an employee whose long-term illness was caused by an accident at work or occupational disease as well as prenatal and maternity leave;

An employee may be dismissed within one month in court by providing a strong reasoning.

Hiring Period

Up to 3 months

Office Rent

The average cost of office rent varies between $10-40/m2, however, the price doesn’t include opertional cost ($1-3/m2) as well as 21% VAT. One of the main preferences the offices in Riga provide is the free parking.

IT Headcount

Latvian IT market capacity amounts to almost 30K specialists. In general, IT sector in the state have started to develop in the 60s last century. In Latvia, the IT sector is bigger than in other Baltic countries. The main sectors of the Latvian IT market are software development, mobile applications, e-commerce, home pages development, and others. The government passed a law that facilitates entry into the state of highly skilled professionals, this is a so-called startup visa. TechHub Riga is the first international location for TechHub. TechHub Riga is a community of new technology startups who may meet, work, learn something. It is a home for 20+ startups, like Infogr.am, Froont, Sellfy, Fabula, Dripit.io, Edurio, Nordigen. Few international companies have chosen Lithuania as their center of development, such as Tieto, Accenture, Exigen.

IT Graduates

Every year almost 6 thousand people graduate from technical faculties in universities and institutes from all over Latvia. The most popular universities and institutes include:

  • Riga Technical University
  • Latvia University of Agriculture
  • Rezekne University of Applied Sciences
  • Information Systems Management Institute in Riga
  • Liepaja University
  • Transport and Telecommunication Institute

Average Salary

Despite the fact that Latvian IT market is on its developing stage the engineers there have competitive salaries and good opportunities. The salaries distribution according to the developer’s experience is as follows:

  • Junior Software Engineer – $1150
  • Middle Software Engineer – $2200
  • Senior Software Engineer – $2900
  • Technical Lead – $3600
Need to compare any destinations? Add the destination to your comparison list.