Baltic States remain the most attractive for transferring your business

4 September 2015

The new data on minimum wage across Europe published by Eurostat on July, 2015 proves that the Baltic States remain the most attractive countries for business transfer. With excellent infrastructure, highly qualified employees and attractive tax incentives Lithuania, Latvia or Estonia could be a great choice for your business.

Minimum wage

According to the data provided by Eurostat, as of July 27, 2015 minimum wage in Luxembourg was 1922.26 EUR, the UK – 1509.7 EUR, the Netherlands – 1507.8 EUR, Belgium – 1501.82 EUR, Germany – 1473 EUR, Ireland – 1461.85 EUR, and France – 1457.52 EUR.

While the minimum wage in Lithuania is 325 EUR, in Latvia – 360 EUR, and in Estonia – 390 EUR.

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Qualified employees

Lithuania boasts to be the first in the EU for mathematics, science and technology graduates per capita which makes this tiny country a great choice for companies operating in the fields of technology, manufacturing and life sciences. In addition, nearly 100% of young professionals are proficient in English language and more than half of them speak two foreign languages.

Tax incentives

All three Baltic States offer tax incentives:

In Latvia dividends received from company which is not registered in blacklisted jurisdictions are not subject of corporate income tax in Latvia. As well as distribution of dividends does not attract withholding tax if not paid to blacklisted jurisdictions.
In Latvia special regime of 9% tax for micro business companies if the turnover does not exceed 100 000 EUR during a fiscal year and other requirements stated in the law are met
In Lithuania special regime of 5% tax for micro business companies if its turnover does not exceed 300 000 EUR during a fiscal year and other requirements stated in the law are met.
In Lithuania reduced value added tax of 9% is applied in the field of tourism.
In Estonia the corporate income tax is calculated and should be paid only when the gained income is distributed, making monthly corporate income tax equal to 0%.
In Estonia if certain criteria are met, the sale of real estate does not attract personal income tax.

Should you wish to receive our assistance regarding transfer of Business please contact our lawyers and tax consultants in

For questions, please, contact Valters Gencs, attorney at law at info@gencs.eu

The material contained here is not to be construed as legal advice or opinion.