The past year marked a stable development trajectory in the operation of the Latgale Special Economic Zone (Latgale SEZ), reaffirming the importance of the SEZ as an effective instrument for attracting investments and strengthening the business environment in the Latgale region.
The Latgale SEZ Administration entered 2026 bringing together 39 capital companies with a total of 98 investment agreements, amounting to more than EUR 114.2 million, within which approximately 700 jobs have already been created in the Latgale region.
2025 stood out in the history of the Latgale SEZ as the year with the highest number of investment agreements concluded to date — during the year, 19 new investment projects were launched with a total value of nearly EUR 12.5 million. The implementation of these projects is expected to create at least 83 new jobs in the region.
The Chair of the Development Council of the Latgale Planning Region, Aldis Adamovičs, emphasises:
“The operation of the Latgale SEZ over the years has demonstrated that a stable and predictable support system is capable of transforming business ideas into real investment projects. Although the geopolitical situation in recent years has made investment attraction in the region more challenging, we are purposefully working on improving tax incentive instruments to encourage entrepreneurs to expand their activities in Latgale.”
“The activities of the Latgale SEZ are focused on attracting new investors and creating a favourable environment for business development in Latgale — both in manufacturing and service sectors. Investments in company development and job creation are simultaneously investments in the overall growth of the region, which is our core objective,” Adamovičs adds.
In Brief
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2025 was the most productive year in the history of the Latgale SEZ in terms of the number of investment agreements concluded: 19 investment projects were launched with a total value of nearly EUR 12.5 million;
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Within the framework of these agreements, at least 83 new jobs will be created in Latgale;
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Seven new companies joined the Latgale SEZ during the year;
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At the end of the year, one of the largest investment projects was implemented, involving approximately EUR 17 million invested in production modernisation;
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Participation in international events contributed to increased visibility of the SEZ;
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Amendments to the SEZ legal framework were initiated.
Key Developments in 2025
In 2025, the activities of the Latgale SEZ were marked by several strategically significant developments that strengthened the regional business environment and long-term growth potential — including the attraction of new investors, implementation of large-scale investment projects, increased international visibility, and development of industrial infrastructure.
New Latgale SEZ Investors
One of the key indicators confirming the attractiveness of the Latgale SEZ is the attraction of new investors. In 2025, seven new companies joined the Latgale SEZ.
These include:
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SIA “Kuprava Industry” (brand Sauna LAB) – a manufacturer of premium wooden frame saunas and modular buildings (Balvi Municipality);
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SIA “Nordic Elite” – a woodworking company (Daugavpils City Municipality);
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SIA “SW RE” – a real estate development company (Daugavpils City Municipality);
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SIA “SENCIS” – a manufacturer of upholstered furniture (Līvāni Municipality);
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SIA “ADUGS Production” – a confectionery products manufacturer (Līvāni Municipality);
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SIA “WEST INVEST” – a metalworking and mechanical engineering company (Daugavpils City Municipality);
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SIA “DBX Timber” – a woodworking company (Rēzekne Municipality).
Implementation of a Major Investment Project
The most prominent investment project implemented within the Latgale SEZ in 2025 was the production capacity expansion project of the medical fibre bundle unit carried out by the high-technology leader SIA “Light Guide Optics International” in Līvāni. Over a three-year period, the company implemented an investment project worth nearly EUR 17 million, establishing a modern production facility with cleanrooms compliant with the highest medical manufacturing standards, advanced technologies, and a rapidly growing team of highly qualified specialists.
International Cooperation and Visibility
Last year, the Latgale SEZ strengthened its role not only as a regional development instrument but also as an internationally recognised partner, promoting dialogue on regional development and investment potential within the European Union and beyond. In 2025, the Latgale SEZ enhanced the region’s international visibility through active involvement in high-level visits and international events.
One of the most significant initiatives was the visit of foreign diplomats to Latgale, organised by the SEZ Administration in cooperation with the Ministry of Foreign Affairs of the Republic of Latvia, providing economic attachés from more than 17 countries with the opportunity to gain first-hand insight into the region’s business environment, industrial infrastructure, and investment potential.
Latgale also hosted representatives of the European Parliament’s Committee on Budgets, and the Latgale SEZ actively participated in organising a European Commission and World Bank experts’ forum in Daugavpils.
The Head of the Latgale SEZ Administration, Iveta Maļina-Tabūne, emphasises:
“International cooperation activities position the Latgale SEZ as a strategic bridge between local investors and the global economic community, significantly increasing the region’s visibility and credibility among foreign partners.”
Competitiveness of Latgale SEZ Companies
The international visibility of the Special Economic Zone is closely linked to the competitiveness of its companies and their ability to operate successfully in global markets. In recent years, Latgale has increasingly been associated with the growth of high-technology and export-oriented industries — particularly in optical fibre, optics, and electronics. The development of these sectors is strengthened by the optoelectronics ecosystem that has formed around Latgale SEZ companies, demonstrating their high level of international competitiveness.
It is no coincidence that the region is often referred to as Latvia’s “Silicon Valley”, as the products of Latgale’s high-technology companies — members of the optoelectronics cluster — are innovative, in high demand, and hold leading positions in global markets.
An analysis of the investment agreements concluded over the past year shows that development is driven both by high-technology enterprises and by companies operating in mechanical engineering, metalworking, and woodworking. SEZ companies are implementing substantial investment projects aimed at acquiring new equipment, increasing production capacity and efficiency, and developing new product lines.
Latgale’s Industrial Transformation
The targeted development of industrial parks, modern business areas, and the advantages offered by the Latgale SEZ are significantly reshaping the region’s economic profile. Several major industrial development projects are currently being implemented in Latgale — the ALTOP Industrial Park in Daugavpils, the Rēzekne Industrial Park, and the “Augšdaugava” Industrial Park in Augšdaugava Municipality. At the same time, other municipalities across Latgale are developing business-ready infrastructure, encouraging export-oriented companies to expand their operations in the region.
A Bridge Between Education and Industry
The Latgale SEZ actively cooperates with vocational and higher education institutions in Latgale to promote the development of labour-market-relevant skills and ensure long-term availability of qualified workforce for regional companies. At the end of last year, the Latgale SEZ Administration organised a meeting between optoelectronics companies and representatives of Daugavpils University (DU) to present the content of the new, upcoming study programme “Electronics”.
Deputy Head of the Latgale SEZ Vladislavs Stankevičs notes that “the meeting confirmed the important role of the Latgale SEZ as a cooperation platform between higher education institutions and leading optoelectronics companies in the region, fostering dialogue on the development of study programmes aligned with labour market needs. The discussion enabled university representatives to hear employers’ expectations directly, while allowing companies to contribute to curriculum development, thereby strengthening the link between education and industry.”
Improvement of the Regulatory Environment
To strengthen the competitiveness of businesses in Latvia’s eastern border region and promote exports and productivity, amendments have been initiated to the law “On the Application of Taxes in Free Ports and Special Economic Zones.”
In 2025, the Saeima conceptually supported amendments providing for the inclusion of Alūksne Municipality in the Latgale SEZ, which represents a significant step towards regional economic growth and strengthening national security.
In addition, a proposal was submitted last year to extend the operating period of the Special Economic Zone, as the current deadline — 31 December 2035 — limits long-term investment planning, particularly for capital-intensive projects typically planned over 15–30 years.
Through cooperation with sectoral ministries and the Latgale Subcommittee of the Saeima Committee on Human Rights and Public Affairs, the proposal has been acknowledged, and on 3 February 2026, the Economic, Agricultural, Environmental and Regional Policy Committee of the Saeima supported and proposed amendments for the final reading, providing for the extension of the Latgale SEZ operating period until 31 December 2050, while also including Alūksne Municipality within the Latgale SEZ. For the amendments to enter into force, they must still be approved by the Saeima in the final reading.
Recognition of a Latgale SEZ Company
On 11 December 2025, the annual Latgale Planning Region Entrepreneur of the Year Award 2025 ceremony took place in an inspiring atmosphere at the Latgale Embassy GORS. The “Innovation of the Year” award was presented to the Latgale SEZ company SIA “Nexis Fibers”, recognised for its innovative solutions in technical fibre production.
The company was the first in its sector to develop chemically and mechanically recycled, bio-based technical yarns made from chemically recycled or bio-origin polymers, thereby reducing waste and giving materials a “second life.” Additionally, infrared-invisible technical yarns for camouflage clothing and equipment have been introduced into production, offering new solutions for the security and defence sector.
Comprehensive Support for Entrepreneurs
The development trajectory of the Latgale SEZ in 2025 confirms that the Latgale region is becoming an important industrial and technological centre. Companies operating in the region have access to substantial support through state-guaranteed tax incentives — up to 80% corporate income tax relief and up to 100% real estate tax relief, as well as support for investments in long-term tangible and intangible assets and projected wage costs for newly created jobs.
New industrial parks, together with the advantages offered by the Latgale SEZ, enhance the region’s competitiveness at the international level.
“Modern infrastructure, workforce availability, and the SEZ tax regime together create an environment and opportunities for long-term business development. Our goal is to provide professional support to potential investors at every stage of their projects,” emphasises Iveta Maļina-Tabūne, Head of Administration of the Latgale Planning Region and Head of the Latgale SEZ.
The Latgale Special Economic Zone provides a comprehensive solution enabling entrepreneurs to leverage the advantages of today’s economy and implement planned business growth processes as efficiently and swiftly as possible, with effective support from state and municipal institutions.
Latgale SEZ – the Key to Business Success
For information on statutory requirements applicable to investments eligible for SEZ tax incentives, as well as detailed information on the Latgale SEZ operating framework and required documentation, please contact the Latgale SEZ Administration:
📧 lsez@lpr.gov.lv | 📞 +371 26511047 | 🌐 www.invest.latgale.lv
Additional information:
Latgale SEZ Administration
📞 +371 29957750
📧 lsez@lpr.gov.lv
