On 12 February 2026, the Saeima of the Republic of Latvia adopted, in the final reading, amendments approving the extension of the Latgale Special Economic Zone (Latgale SEZ) until 31 December 2050, as well as the inclusion of Alūksne Municipality within the territory of Latgale SEZ.
These decisions will expand business support opportunities in Latvia’s eastern border region, promote investment attraction and infrastructure development, and strengthen both regional and national security by ensuring long-term stability, investor confidence and the creation of new jobs.
Chairman of the Development Council of the Latgale Planning Region, Aldis Adamovičs, emphasizes:
“This decision by the Saeima sends a strong signal to investors about the state’s long-term vision for the development of Latvia’s eastern border region. Extending the operation of Latgale SEZ until 2050 provides businesses with the stability and predictability that are essential for planning capital-intensive investments. At the same time, the inclusion of Alūksne Municipality expands the development potential of the border region and strengthens the competitiveness of the entire territory, creating new opportunities for entrepreneurship, infrastructure development and employment.”
“We express our gratitude to the Saeima and the involved committees for constructive cooperation and support of the proposals submitted by the Latgale Planning Region and the Latgale SEZ Administration, which contribute to strengthening the region’s economic growth,” concludes Adamovičs.
About Latgale SEZ
Latgale SEZ is the newest of Latvia’s special business support territories, established in 2017. While the total turnover of companies operating within Latgale SEZ initially amounted to approximately EUR 20 million per year, it exceeded half a billion euros last year.
Today, Latgale SEZ is one of the key regional development instruments, promoting investment attraction, employment and economic activity in the Latgale region. Tax incentives granted within the SEZ framework enable companies to reinvest saved resources into business development, modernisation and job creation. The SEZ provides strong support not only to entrepreneurs seeking to expand and strengthen their competitiveness in local and international markets, but also to the region and the state as a whole, as it contributes to increased tax revenues for both national and municipal budgets.
Over eight years, Latgale SEZ has demonstrated stable growth and achieved strong financial performance indicators. The volume of concluded investment agreements reflects investor confidence in Latgale SEZ and the opportunities it offers. As a result of SEZ operations, a significant number of new jobs have been created in the region, contributing to the well-being of its residents.
Among companies operating within the SEZ, a strong optoelectronics cluster — often referred to as Latvia’s “Silicon Valley” — has developed. This ecosystem includes optics, electronics, chemical fibre, optoelectronics and technical fibre production, bringing together globally competitive, export-oriented companies producing high value-added products.
Despite geopolitical challenges, the past two years have marked a stable development trajectory for Latgale SEZ, reaffirming its importance in investment attraction and strengthening the business environment in the Latgale region.
The year 2024 was one of the strongest in Latgale SEZ history in terms of attracted investment volume. In 2024, 11 investment agreements were concluded for projects worth nearly EUR 40 million, with close to 80 new jobs planned in Latgale. Five new companies joined Latgale SEZ that year.
As of the beginning of 2026, the Administration unites 39 capital companies with a total of 98 concluded investment agreements amounting to more than EUR 114.2 million, under which approximately 700 jobs have already been created in Latgale. The year 2025 stood out in Latgale SEZ history with the highest number of concluded investment agreements to date — 19 new investment projects were launched during the year with a total value of nearly EUR 12.5 million, creating at least 83 new jobs in the region.
Latgale SEZ – A Key to Business Success
Information on the legal requirements for investments eligible for direct tax incentives within the SEZ, as well as detailed information on Latgale SEZ regulations and required documentation, is available by contacting the Latgale SEZ Administration:
E-mail: lsez@lpr.gov.lv
Phone: +371 26511047
Website: www.invest.latgale.lv
Additional information:
Latgale SEZ Administration
Phone: +371 29957750
E-mail: lsez@lpr.gov.lv
